How much is land transfer tax in PEI?

Prince Edward Island charges a real property transfer tax of 1% on the greater of the purchase price or the property value. Properties valued under $30,000 are exempt from the tax. For example, the transfer tax on a $300,000 home would be $3,000.

Is there a first-time homebuyer exemption in PEI?

Yes, first-time homebuyers in PEI are fully exempt from the real property transfer tax if the purchase price and property value are both under $200,000 and the home will be used as their primary residence. Both purchasers must qualify as first-time buyers if there is more than one.

Are there any properties exempt from PEI transfer tax?

Properties with a value under $30,000 are exempt from the real property transfer tax in PEI. Additionally, first-time homebuyers purchasing under $200,000 are exempt, and certain transfers between family members may also qualify for exemptions.

When is PEI land transfer tax paid?

The real property transfer tax is due when the deed is registered with the province. Your lawyer typically handles this payment as part of the property closing process.

PEI Land Transfer Tax Calculator

Calculate the real property transfer tax on your home purchase in Prince Edward Island. PEI charges a flat 1% rate on the property value, with a full exemption for first-time homebuyers purchasing properties under $200,000.

Land Transfer Tax

PEI Land Transfer Tax Rate

Prince Edward Island charges a real property transfer tax of 1% on the greater of the purchase price or the property value.

Property Value	Tax Rate
Under $30,000	Exempt
$30,000 and above	1.0%

How to Calculate PEI Transfer Tax

Example: For a property valued at $350,000:

$350,000 x 1% = $3,500

Example: For a property valued at $25,000:

Exempt (under $30,000 threshold)

PEI First-Time Homebuyer Exemption

First-time homebuyers in PEI can be fully exempt from the real property transfer tax under the following conditions:

The property value and purchase price are both below $200,000
The buyer will occupy the home as their primary residence
If there is more than one purchaser, both must qualify as first-time buyers

This makes PEI one of the more generous provinces for first-time buyers purchasing more affordable homes.

Other Closing Costs in PEI

The real property transfer tax is one of several closing costs to budget for when buying a home on Prince Edward Island. Additional expenses include legal fees, title insurance, a home inspection, property tax adjustments, and mortgage default insurance if your down payment is below 20%. PEI’s relatively affordable housing market means that closing costs are generally lower than in larger provinces, but first-time buyers should still plan carefully. Use our closing costs calculator to estimate the total cost of purchasing a home in PEI, and our mortgage calculator to determine your monthly mortgage payments.

Land Transfer Tax in Other Provinces

Land transfer tax rates and rules vary across Canada. See our Land Transfer Tax Calculator for a complete comparison of rates in all provinces and territories.