If you’re buying property in New Brunswick, you’ll need to budget for the Land Transfer Tax (LTT)—a mandatory fee that’s often overlooked until closing day, despite being the largest closing expense aside from the down payment. This guide breaks down what the tax is, how much it costs, who pays it, and why it’s a key part of your closing costs.

*Check out my Buyers Guide blog for the full list of closing costs.

What is the Land Transfer Tax in New Brunswick?

The Land Transfer Tax is a provincial tax charged whenever ownership of real property changes hands. It applies whether you’re buying a home, vacant land, cottage, or commercial property. The tax rate in New Brunswick is 1% of the property’s purchase price or assessed value, whichever is higher.

For example:

• $200,000 purchase price = $2,000 land transfer tax
• $350,000 purchase price = $3,500 land transfer tax
• $500,000 purchase price = $5,000 land transfer tax

Whether you’re buying your first home, upgrading, or downsizing, this tax will apply.

Where Does the Tax Money Go?

Revenue from the Land Transfer Tax goes into the provincial general fund, helping to support public services like healthcare, education, and infrastructure across New Brunswick.

Who Pays the Land Transfer Tax and When?

The buyer is responsible for paying the Land Transfer Tax in New Brunswick. It’s due at the time of registration with Service New Brunswick—usually coordinated and paid on your behalf by your lawyer as part of the closing process. The tax must be paid before the property title can officially be transferred to you.

Why You Need to Budget for This Closing Cost

Land Transfer Tax can add thousands of dollars to your closing costs. Along with your down payment, legal fees, inspections, and insurance, it’s essential to include this tax in your budget to avoid last-minute surprises.

For example:

• On a $275,000 home, you’d pay $2,750 in land transfer tax.
• On a $425,000 home, you’d pay $4,250 in land transfer tax.

Knowing these numbers upfront allows you to plan with confidence.

Are There Any Exemptions from Land Transfer Tax in New Brunswick?

One of the most common questions buyers ask is whether there are exemptions. Unfortunately, the answer is no. New Brunswick does not offer exemptions from Land Transfer Tax—not for first-time buyers, family transfers, government surplus sales, tax sales, or private sales. Every property purchase is subject to the tax.

Key Takeaways

✔️ The Land Transfer Tax in New Brunswick is 1% of the purchase price or assessed value (whichever is greater). ✔️ The buyer’s lawyer will pay the tax on behalf of the buyer at registration through Service New Brunswick. ✔️ There are no exemptions—it applies to all sales, including private and government sales. ✔️ Budgeting for this tax is critical to avoiding surprises at closing.

Buying a property in New Brunswick? Don’t let unexpected costs derail your plans. I’ll help you navigate the process with clarity and confidence, ensuring you understand every cost before you close.

For more real estate insights or to discuss your plans, visit my blog or contact me today. I’m here to guide you every step of the way.