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.
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.
PEI Transfer Tax by Home Price
| Purchase Price | Transfer Tax (1%) | First-Time Buyer Exemption |
|---|---|---|
| $150,000 | $1,500 | Exempt (under $200K) |
| $175,000 | $1,750 | Exempt (under $200K) |
| $200,000 | $2,000 | Borderline — verify with province |
| $250,000 | $2,500 | No exemption |
| $300,000 | $3,000 | No exemption |
| $350,000 | $3,500 | No exemption |
| $400,000 | $4,000 | No exemption |
| $500,000 | $5,000 | No exemption |
PEI vs Other Atlantic Provinces
| Province | LTT Rate | Tax on $300K | First-Time Buyer Break |
|---|---|---|---|
| PEI | 1% flat | $3,000 | Exempt under $200K |
| New Brunswick | 1% flat | $3,000 | None |
| Nova Scotia | 0.5%–1.5% (municipal) | $4,500 (Halifax) | None |
| Newfoundland | 0.4% of greater of price/value | $1,200 | None |
PEI’s first-time buyer exemption (up to $200,000) makes it one of the more buyer-friendly Atlantic provinces for 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:
| 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.
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. PEI does not allow deferrals or payment plans for the transfer tax; it must be paid in full at closing.