Land Transfer Tax New Brunswick: How the 1% RPTT Actually Works
Land Transfer Tax New Brunswick: How the 1% RPTT Actually Works
You have found the house, you have secured financing, and you are ready to close. Then your lawyer mentions the Real Property Transfer Tax. For most New Brunswick buyers, this is the first time they hear about it -- and for some, the math does not match what they expected.
New Brunswick's Real Property Transfer Tax is straightforward at the surface: 1% of the property value, paid in full on closing day. But the way that "value" is determined is where buyers get blindsided.
How the Tax Is Calculated
Under the Real Property Transfer Tax Act, the tax is levied at 1% on the greater of two numbers: your negotiated purchase price or the property's assessed value as determined by Service New Brunswick (SNB).
This distinction matters enormously in practice.
Scenario 1: You pay market price. You buy a home in Moncton for $375,000. The assessed value is $340,000. Your transfer tax is 1% of $375,000 = $3,750, because the purchase price is higher.
Scenario 2: You negotiate a below-market deal. You buy a fixer-upper in a rural area for $180,000. The assessed value, based on neighborhood comparables, sits at $250,000. Your transfer tax is 1% of $250,000 = $2,500 -- calculated on the assessed value, not what you paid. You owe $700 more than you budgeted.
The second scenario is particularly common for out-of-province buyers purchasing older, distressed, or neglected properties where the purchase price reflects the home's poor condition but the assessment reflects the land's neighborhood value.
There Is No First-Time Buyer Exemption
This is the single most important thing to understand. Unlike Ontario (which offers a rebate on the first $368,000), British Columbia (which exempts properties under $500,000), or Prince Edward Island (which provides a first-time buyer exemption), New Brunswick applies the Real Property Transfer Tax uniformly to every buyer regardless of homeownership history.
Every buyer pays. Every transaction. No exceptions for first-time purchasers.
The only exemptions that exist are narrow and technical: transfers between spouses or common-law partners, transfers from an executor to a beneficiary under a will, leases under 25 years, and transfers between wholly-owned subsidiaries. A standard market purchase does not qualify for any exemption.
When and How You Pay
The transfer tax is collected by your real estate lawyer and remitted to Service New Brunswick when the deed is registered. This means the money must be available in your bank account on or before closing day. It cannot be folded into your mortgage principal. It is a hard cash cost.
Your lawyer will include the RPTT as a line item on your final statement of adjustments, alongside their legal fees, title insurance, and any property tax adjustment owed to the seller.
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How to Check the Assessed Value Before You Offer
Before making an offer, look up the property's current assessed value through Service New Brunswick's online property assessment database. If the assessed value is significantly higher than the price you intend to offer, factor the higher figure into your closing cost budget.
Property assessment notices are now mailed in January, based on market data from January 1 of the preceding year. Because of this one-year lag, assessed values can diverge from current market conditions in either direction -- especially during market corrections when real sale prices drop faster than assessments adjust.
If you believe the assessed value is erroneously high after you take possession, you have 30 days from the mailing of your January assessment notice to file a Request for Review with SNB. But that appeal process does not reduce or refund the transfer tax you already paid at closing. The RPTT calculation is based on the assessed value at the time of deed registration, period.
Budgeting the Transfer Tax at Different Price Points
| Purchase Price | Assessed Value | RPTT Calculation Basis | Transfer Tax |
|---|---|---|---|
| $250,000 | $230,000 | $250,000 (purchase price higher) | $2,500 |
| $300,000 | $300,000 | $300,000 (equal) | $3,000 |
| $180,000 | $250,000 | $250,000 (assessed value higher) | $2,500 |
| $375,000 | $340,000 | $375,000 (purchase price higher) | $3,750 |
| $450,000 | $420,000 | $450,000 (purchase price higher) | $4,500 |
For the average New Brunswick home at $363,668, expect a transfer tax of roughly $3,637 at a minimum -- likely more if the assessed value has outpaced the sale price.
This is one of the closing costs that catches first-time buyers off guard in New Brunswick. The New Brunswick First-Time Home Buyer Guide includes a complete closing cost worksheet so you can budget the exact amount before you sign your purchase agreement.
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