Moving to Nova Scotia From the US: What Americans Need to Know About the Non-Resident Tax
- Nova Scotia Home Finder
- Dec 23, 2025
- 4 min read
Thinking about moving to Nova Scotia from the US and buying a home here? You may have heard about a “non-resident tax” that applies when out‑of‑province or foreign buyers purchase residential property in Nova Scotia. This is officially called the Non‑Resident Deed Transfer Tax, and understanding how it works can save you tens of thousands of dollars and a lot of stress when relocating from the United States.
What Is Nova Scotia’s Non-Resident Deed Transfer Tax?
Nova Scotia charges an extra deed transfer tax when non-residents buy certain residential properties in the province. This provincial tax is on top of the standard municipal deed transfer tax that everyone pays at closing.
As of April 1, 2025, the non-resident deed transfer tax rate is set to increase from 5% to 10% for qualifying non-resident buyers, which makes it a major cost to factor into your budget if you are moving to Nova Scotia from the US.
Who Counts as a Non-Resident in Nova Scotia?
For this tax, Nova Scotia looks at whether you are a resident of the province, not whether you are a Canadian citizen.
If you currently live in the United States and do not yet meet Nova Scotia’s residency criteria, you are treated as a non-resident at the time you buy, even if your long‑term goal is moving to Nova Scotia from the US and making it your permanent home.
When Does the Non-Resident Tax Apply?
The non-resident deed transfer tax generally applies when:
You are a non-resident of Nova Scotia at the time of purchase.
You are buying residential property with three units or fewer, or vacant land intended for residential use.
The agreement of purchase and sale is signed after March 31, 2025, or the transfer happens after that date without a formal agreement.
The tax is calculated on the greater of the purchase price or the property’s assessed value, which means under‑market deals do not reduce the non-resident tax bill.
The 6-Month Residency Exemption for Newcomers
Here is the part that matters most if you are truly moving to Nova Scotia from the US: there is an important exemption for new residents who move within six months of closing.
If you move to Nova Scotia within six months of the property closing and can provide proof of Nova Scotia residency (for example, a Nova Scotia driver’s licence or health card), the 10% non-resident deed transfer tax can be waived for you as an individual buyer.
How Much Could the Non-Resident Tax Cost You?
Because the rate is 10%, the numbers add up quickly for anyone moving to Nova Scotia from the US and buying a home here.
For example, if a non-resident buys a $400,000 home and does not qualify for the exemption, the provincial non-resident deed transfer tax alone would be $40,000, and that is on top of the regular municipal deed transfer tax (often around 1–1.5% in many municipalities).
Is There an Ongoing “Non-Resident Property Tax”?
Many Americans researching moving to Nova Scotia from the US worry about an annual non-resident property tax. Nova Scotia originally proposed a 2% yearly tax on non-resident owners in 2022, but the province withdrew that plan after significant pushback.
As of now, there is no extra annual provincial property tax just for being a non-resident in Nova Scotia; non-resident owners pay the same municipal property tax rates as local residents on their property’s assessed value.
What If You Keep the Property as a Vacation or Investment Home?
Not everyone moving to Nova Scotia from the US relocates right away; some buyers start with a vacation property or an investment rental. If you buy a property as a non-resident and do not move to Nova Scotia within six months, the non-resident deed transfer tax remains payable and is not waived.
This tax tends to fall most heavily on buyers of recreational homes, secondary residences, and out‑of‑province or foreign investors who are not actively becoming Nova Scotia residents.
Selling Your Nova Scotia Property as a US Resident
If you are an American who bought in Nova Scotia and later decide to sell without becoming a Canadian resident, there are extra tax steps on sale as well. Canada generally requires the buyer to withhold a portion of the sale proceeds (commonly 25% of the gross sale price) unless you secure a clearance certificate from the Canada Revenue Agency confirming your tax obligations are handled.
Anyone moving to Nova Scotia from the US should get cross‑border tax advice well before selling to avoid surprises with Canadian withholding rules and US tax reporting.
Federal Rules to Know When Moving From the US
In addition to Nova Scotia’s non-resident deed transfer tax, Americans moving to Nova Scotia from the US should be aware of federal housing rules. Canada has imposed a temporary federal restriction on certain types of residential purchases by non‑Canadians, though there are exemptions and changes over time, especially for people with specific immigration or work statuses.
The federal Underused Housing Tax can also apply to some non-resident, non‑Canadian owners of under‑occupied residential properties, so it is important to confirm whether that tax could affect you when you are planning your move to Nova Scotia from the US.
Practical Tips for Americans Moving to Nova Scotia From the US
If you are serious about moving to Nova Scotia from the US and want to manage or avoid the non-resident tax, planning is key.
Time your move and closing. Aim to relocate within six months of closing so you can qualify for the new‑resident exemption from the 10% non-resident deed transfer tax.
Gather proof of residency early. Plan to obtain a Nova Scotia driver’s licence, health card, or other accepted documentation as soon as you settle, so you can show proof for the exemption.
Work with local professionals. A Nova Scotia real estate lawyer and tax advisor familiar with Americans moving from the US can help structure your purchase correctly and ensure you file the right forms.
Budget conservatively. Until you have confirmed your exemption, treat the 10% non-resident deed transfer tax as part of your upfront costs when moving to Nova Scotia from the US.
By understanding how the non-resident deed transfer tax works - and how the six‑month residency exemption can help - Americans moving to Nova Scotia from the US can make better decisions, protect their budgets, and start their new life on the East Coast of Canada with fewer financial surprises.
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