PEI Land Transfer Tax Guide 2025

Everything you need to know about Prince Edward Island's Land Transfer Tax — rates, exemptions, the first-time buyer rebate, and the non-resident surcharge.

PEI Land Transfer Tax Rate

Prince Edward Island charges a Land Transfer Tax (LTT) of 1% of the full purchase price on all real property transfers. This is one of the lowest land transfer tax rates in Canada, making PEI significantly more affordable from a tax perspective than provinces like Ontario (up to 2.5% in Toronto) or BC (up to 3% on high-value properties).

The LTT applies to the greater of the purchase price or the assessed value of the property, so appraisals matter in cases where the purchase price may be below market value.

PEI LTT Calculation Examples

Purchase Price	LTT (1%)	FTB Rebate	Net LTT
$250,000	$2,500	$2,000	$500
$320,000	$3,200	$2,000	$1,200
$380,000	$3,800	$2,000	$1,800
$450,000	$4,500	$2,000	$2,500
$600,000	$6,000	Not eligible*	$6,000

*First-time buyer rebate eligibility may have purchase price caps — confirm current limits with the PEI Department of Finance.

First-Time Buyer LTT Rebate

PEI offers a Land Transfer Tax rebate of up to $2,000 for first-time homebuyers. To qualify:

• You must be a Canadian citizen or permanent resident
• This must be your first home purchase anywhere in Canada
• You must intend to occupy the property as your principal residence
• The rebate is applied at the time of transfer — you don't need to apply separately
• Your real estate lawyer handles the rebate application as part of closing

Non-Resident Property Transfer Tax (PTT)

PEI introduced a 15% Non-Resident Property Transfer Tax on residential property purchases by non-residents. A "non-resident" for this purpose is a person who is not ordinarily resident in PEI — this includes buyers from Ontario, BC, or other provinces who are purchasing a vacation home or investment property without establishing PEI residency.

On a $380,000 purchase, the PTT adds $57,000 — making the total tax burden for a non-resident buyer $60,800 ($3,800 LTT + $57,000 PTT). This is a significant policy tool aimed at protecting housing affordability for Islanders.

Exemptions from PEI LTT

• Transfers between spouses (generally exempt)
• Certain transfers pursuant to court orders
• Transfers to or from a registered charity in some cases
• Family farm transfers may qualify for reduced rates

Always consult a PEI real estate lawyer to confirm whether your specific transaction qualifies for any exemption.

Comparing PEI LTT to Other Provinces

Province	LTT on $380,000	Notes
PEI	$3,800	1% flat rate, one of the lowest
Nova Scotia	~$5,700	1.5% flat rate
Ontario	~$5,475	Tiered; +Toronto LTT if applicable
BC	~$6,100	1% on first $200K, 2% above
Alberta	$0	No land transfer tax (title fees only)