N.S. Reg. 185/2026 replaces Nova Scotia’s existing Non-resident Deed Transfer Tax Regulations with a new regulatory framework governing the administration of the province’s non-resident deed transfer tax. Under section 27 of the Non-resident Deed Transfer Tax Act, the regulation repeals N.S. Reg. 41/2023 and establishes updated rules concerning residency, exemptions, refunds, assessments, interest, penalties and record-keeping.

A significant feature of the new regulations is the clarification of how individuals can establish Nova Scotia residency. Acceptable evidence includes a Nova Scotia health card or, alternatively, a Nova Scotia driver’s licence or identification card accompanied by another form of proof of residence acceptable to the Administrator.

The regulations also provide an exemption for individuals who intend to become Nova Scotia residents within one year after acquiring residential property. To claim the exemption, the purchaser must file an affidavit confirming that intention and subsequently provide proof of provincial residency within the one-year period. If residency is not established on time, the Administrator must assess the tax and applicable interest and may impose a penalty. An individual who encounters exceptional circumstances may request an extension of up to one additional year. Examples include illness, the death or illness of an immediate family member, fire, flood, natural disaster or a delayed employment transfer.

Several categories of property transfers are expressly exempt. These include transfers between spouses or common-law partners, certain transfers between former spouses arising from the division of marital or jointly held assets, and specified transfers involving trusts. Transfers involving estates and deceased grantors are also exempt in circumstances such as distributions to beneficiaries under a will or applicable intestacy laws. Transfers to foreclosing mortgagees and from foreclosing mortgagees to mortgage insurers are similarly excluded.

Refunds may be available where extraordinary circumstances exist, tax was paid in error, or an individual paid the tax but subsequently became a Nova Scotia resident within one year of acquiring the property. Applications generally must be made within two years of acquisition.

The regulation establishes rules for calculating tax where only part of a parcel is transferred. The applicable assessed value may be prorated according to the portion of the parcel transferred, with an alternative fair-market-value methodology available where ordinary prorating would not reasonably reflect the value of the transferred portion.

Finally, the regulations strengthen enforcement and administration. Unpaid tax attracts interest of 1% per month from the date of transfer. Administrative penalties may equal 20% of the tax, increasing to 100% where a false statement or omission is knowingly or grossly negligently made.

Nova Scotia (185/2026) August 19, 2026
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