Calculate the real property transfer tax on your home purchase in Prince Edward Island. PEI charges a flat 1% rate on the greater of the purchase price or the assessed property value, with a full exemption for qualifying first-time homebuyers — and, unlike some other provinces, that exemption has no purchase-price cap.
PEI Land Transfer Tax Rate
Prince Edward Island’s Real Property Transfer Tax Act charges a real property transfer tax of 1% on the greater of the purchase price (consideration) or the assessed value of the property.
| Property Value | Tax Rate |
|---|---|
| $30,000 or less | Exempt (low-value exemption) |
| Over $30,000 | 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 (at or under the $30,000 low-value threshold)
PEI First-Time Homebuyer Exemption
First-time homebuyers in PEI are fully exempt from the real property transfer tax, with no maximum purchase price — this is a meaningful difference from provinces like Ontario, where the first-time buyer rebate is capped at a fixed dollar amount. To qualify:
- You must be a Canadian citizen or permanent resident
- You must have lived in PEI for at least 6 consecutive months immediately before the registration date, or have filed a PEI income tax return in at least 2 of the 6 years before registration
- You must not have previously held a registered interest in real property that was your principal residence
- You must not have previously received a PEI first-time homebuyer exemption
- You must file a first-time buyer declaration on registration of the deed and intend to occupy the property as your principal residence
- If you don’t occupy the home as your principal residence for at least 183 consecutive days after registration, the tax becomes payable retroactively
- If there is more than one purchaser, all purchasers must qualify as first-time buyers
Note: a purchase-price cap on this exemption (historically $200,000) existed in PEI’s regulations but was revoked in 2016 — the exemption is no longer limited by price.
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.
PEI Transfer Tax by Home Price
| Purchase Price | Transfer Tax (1%) | First-Time Buyer Exemption |
|---|---|---|
| $150,000 | $1,500 | Fully exempt (first-time buyer) |
| $200,000 | $2,000 | Fully exempt (first-time buyer) |
| $300,000 | $3,000 | Fully exempt (first-time buyer) |
| $400,000 | $4,000 | Fully exempt (first-time buyer) |
| $500,000 | $5,000 | Fully exempt (first-time buyer) |
| $750,000 | $7,500 | Fully exempt (first-time buyer) |
For all buyers who are not first-time buyers, the tax applies at 1% regardless of price (except for transfers at or under $30,000, which are exempt for anyone).
PEI vs Other Atlantic Provinces
| Province | LTT Rate | Tax on $300K | First-Time Buyer Break |
|---|---|---|---|
| PEI | 1% flat | $3,000 | Fully exempt, no price cap |
| New Brunswick | 1% of greater of price/assessed value | $3,000 | None |
| Nova Scotia | 0.5%–1.5% (municipal) | $4,500 (Halifax) | None |
| Newfoundland | Tiered fee (~0.4% effective) | ~$1,300 | None |
PEI’s uncapped first-time buyer exemption makes it one of the most generous provinces in Canada for first-time buyers at any price point, not just starter homes.
Total Closing Costs in PEI
The transfer tax is only one piece of your closing budget. Here’s a typical breakdown for a $300,000 PEI home purchased by a buyer who is not a first-time buyer:
| Closing Cost | Estimated Amount |
|---|---|
| Real property transfer tax | $3,000 |
| Legal fees (lawyer) | $1,000–$1,500 |
| Title insurance | $150–$300 |
| Home inspection | $400–$600 |
| Property tax adjustment | $500–$1,500 |
| Moving expenses | $500–$2,000 |
| Total estimated closing costs | $5,550–$8,900 |
Budget approximately 2%–3% of the purchase price for closing costs in PEI (less for first-time buyers, who skip the transfer tax entirely).
Timing: When Is the Tax Paid?
The real property transfer tax is paid at the time the deed is registered with the province. In practice, your real estate lawyer handles this payment on your behalf at the closing table — you will see it as a line item on your Statement of Adjustments (or, for qualifying first-time buyers, a declaration filed in place of payment). PEI does not allow deferrals or payment plans for the transfer tax where it is owing; it must be paid in full at closing.