How much is the land transfer tax in PEI?

PEI charges a real property transfer tax of 1% of the greater of the purchase price or assessed value. On a $400,000 home, the transfer tax would be $4,000. Eligible first-time buyers purchasing a property as their primary residence are fully exempt from this tax, with no purchase price cap -- the former $200,000 cap was removed in 2016.

What are closing costs in Charlottetown?

Closing costs in Charlottetown on a $400,000 home are typically $9,500–$12,500. The main costs are the real property transfer tax ($4,000), legal fees ($1,500–$2,000), title insurance ($300–$400), home inspection ($400–$600), and property tax adjustments. PEI does not charge PST on CMHC insurance premiums.

Can non-residents buy property in PEI?

PEI has unique land ownership restrictions. Non-residents can own residential property, but land purchases over 5 acres or shore frontage over 165 feet require approval from the provincial government. The Lands Protection Act limits aggregate non-resident ownership. These restrictions primarily affect rural and waterfront properties rather than typical residential purchases in Charlottetown or Summerside.

Closing Costs in PEI — Complete Calculator (2026)

PEI has a straightforward 1% real property transfer tax and relatively low closing costs, with a full exemption for eligible first-time buyers at any purchase price (the exemption’s former $200,000 price cap was removed in 2016). The province also has unique land ownership restrictions that can affect certain purchases.

PEI real property transfer tax

Rate	Basis
1%	Greater of purchase price or assessed value

Transfer tax examples

Purchase Price	Transfer Tax
$250,000	$2,500
$300,000	$3,000
$400,000	$4,000
$500,000	$5,000
$600,000	$6,000

Complete PEI closing cost estimate

Scenario 1: $400,000 home in Charlottetown (first-time buyer, 5% down)

Cost	Amount
Real property transfer tax (1%)	$4,000
First-time buyer exemption (no price cap)	–$4,000
Legal fees	$1,700
Title insurance	$350
Home inspection	$500
Property tax adjustment	$1,100
PST on CMHC	$0 (no PST on insurance in PEI)
Home insurance	$1,500
Moving costs	$1,800
Total closing costs	$6,950

Scenario 2: $350,000 home in Summerside (repeat buyer, 20% down)

Cost	Amount
Real property transfer tax (1%)	$3,500
Legal fees	$1,500
Title insurance	$300
Home inspection	$450
Property tax adjustment	$900
Home insurance	$1,300
Moving costs	$1,500
Total closing costs	$9,450

PEI-specific considerations

Lands Protection Act

PEI restricts land ownership to protect the island’s agricultural character:

Non-residents: Can own up to 5 acres and 165 feet of shore frontage without approval. Larger purchases require a permit from the Island Regulatory and Appeals Commission.
Corporations: Aggregate corporate land holdings are limited to 3,000 acres.
Typical residential: Standard homes in Charlottetown and Summerside are unaffected by these rules.

Well and septic

Many PEI properties outside of Charlottetown and Summerside rely on well water and septic systems:

Well water testing: $50–$100
Septic inspection: $200–$400

Insurance considerations

PEI properties, especially coastal ones, may face higher insurance premiums due to storm surge and flooding risk. Get insurance quotes before making an offer on waterfront properties.

PEI closing costs vs other Atlantic provinces

Province	Closing costs on $350K home	Transfer tax / fee
Newfoundland	$6,500–$8,500	~$1,498 (registration of deeds tax)
New Brunswick	$8,500–$11,000	$3,500 (1% LTT on assessed)
PEI	$9,000–$12,000	$3,500 (1% on purchase price)
Nova Scotia (Halifax)	$11,000–$14,500	$5,250 (1.5% DTT)

First-time buyer programs in PEI

Eligible first-time buyers purchasing a property as their primary residence are fully exempt from PEI’s real property transfer tax, regardless of purchase price – the exemption’s former $200,000 price cap was removed in 2016. To qualify, you must have lived in PEI for 183 consecutive days before the purchase (or occupy the new home for 183 consecutive days after), and the property must become your principal residence. If more than one purchaser is on title, all must qualify as first-time buyers. Federal programs are also available:

Program	Benefit
PEI First-Time Buyer LTT Exemption	Full exemption, no purchase price cap
Federal First-Time Home Buyers Tax Credit	Up to $1,500 federal tax refund
FHSA (First Home Savings Account)	Up to $40,000 tax-free savings
Home Buyers’ Plan (HBP)	Withdraw up to $60,000 from RRSP tax-free

Non-resident buyers: extra considerations

PEI’s Lands Protection Act creates unique due diligence requirements for non-residents and corporations:

Buyer Type	Restriction	Approval Required?
PEI resident	None	No
Canadian non-resident	Over 5 acres or 165 ft shore frontage	Yes — IRAC approval
Corporation	Aggregate limit of 3,000 acres	Yes above limit
Foreign national	Same as Canadian non-resident	Yes

Standard residential properties in Charlottetown and Summerside are almost never affected. This primarily applies to large rural lots and waterfront.

Budgeting rule of thumb for PEI

Purchase Price	Estimated Total Closing Costs	% of Purchase Price
$250,000	$7,500–$9,500	3.0%–3.8%
$350,000	$9,000–$12,000	2.6%–3.4%
$450,000	$11,000–$14,500	2.4%–3.2%
$600,000	$13,500–$18,000	2.3%–3.0%

Budget 2.5%–3.5% of the purchase price for closing costs on a typical PEI home purchase.

PEI real estate market context

PEI has one of Canada’s smallest housing markets, with Charlottetown and Summerside accounting for most activity. The province has experienced significant price growth since 2020 due to immigration and internal migration from higher-cost provinces. Average detached prices in Charlottetown now range from $350,000–$500,000. The island’s finite land and Lands Protection Act create natural supply constraints, especially for rural and waterfront properties.