Closing Costs in New Brunswick: The Flat 1% Transfer Tax

Closing Costs in New Brunswick: The Flat 1% Transfer Tax

Short answer: New Brunswick buyers pay a real property transfer tax of 1% of the greater of the purchase price or the property's assessed value, charged under the Real Property Transfer Tax Act when the deed is registered. On a $400,000 purchase the tax is $4,000 if price and assessment agree, and more if the assessed value is higher than what you paid. There is no first-time buyer rebate, no exemption threshold, and no graduation. Add Service New Brunswick registration for the transfer and the mortgage, legal fees, title work, and adjustments. The federal guideline is 1.5% to 4% of the price for closing costs; a New Brunswick resale purchase usually lands in the lower half of that range because the transfer tax is a single flat line.

New Brunswick runs one of the simplest transfer taxes in Canada, and simple cuts both ways. There is no bracket schedule to plan around, no municipal second tax as in Toronto, and no rebate paperwork to file after closing. There is also no relief: a first-time buyer purchasing a modest home pays the same 1% as an investor purchasing a large one, and the tax is calculated on the assessed value whenever the assessment is higher than the price, which punishes exactly the buyers who negotiated hardest. This guide prices the stack, explains the assessed-value rule that surprises people moving from other provinces, and shows the full cash to close at three price points. Down payment rules are in our down payment guide; the national comparison is in our closing costs hub.

Line 1: The real property transfer tax

The tax is imposed by the Real Property Transfer Tax Act and is collected when the deed transferring the property is registered through Service New Brunswick. The purchaser pays it; the deed cannot be registered until the tax is paid. The current rate of 1% applies to deeds registered on or after April 1, 2016. Earlier registrations paid less: 0.5% for deeds registered from June 1, 2012 to March 31, 2016, and 0.25% before that. Anyone quoting you a half-percent figure from an old purchase is describing history, not the current charge.

The base is the part to get right. The 1% applies to the greater of:

• the consideration for the transfer, usually the purchase price, or
• the assessed value of the property at the time of registration, taken from the provincial assessment list.

In a rising or flat market the two numbers are usually close and the distinction is academic. In a softening market, or on any purchase negotiated below assessment, the tax follows the assessment upward. A buyer who negotiates a $380,000 price on a home assessed at $405,000 has not saved 1% of the $25,000 discount: the transfer tax is $4,050, calculated on $405,000, not $3,800 on the price. The province taxes the value on its own books, not the deal you struck. Your lawyer can confirm the current assessed value before the offer firms up, and on a below-assessment purchase that check belongs in the condition period, not at closing.

The Act exempts specific transfers rather than specific buyers. The main exemptions cover transfers between spouses, transfers from an executor to a beneficiary under a will, transfers to Crown corporations, transfers made solely to secure a debt and reconveyances of that security, and leases with terms under 25 years. What the list does not contain is any relief for first-time buyers, principal residences, or lower-priced homes. If a transfer in your plan looks exempt, confirm it with your lawyer before you rely on it; the exemption analysis is fact-specific and the registration office will apply the Act as written.

Worked transfer tax examples at 1%

• $300,000 (price and assessment equal): $3,000.
• $400,000 (price and assessment equal): $4,000.
• $500,000 (price and assessment equal): $5,000.
• $380,000 price, $405,000 assessed value: $4,050, because the tax follows the assessed value.

Line 2: What New Brunswick does not charge

New Brunswick does not stack a municipal land transfer tax on top of the provincial one; the 1% is the whole transfer-tax story in Moncton, Fredericton, Saint John, and every smaller community alike. Unlike Ontario, Quebec, and Saskatchewan, New Brunswick does not charge provincial sales tax on the CMHC mortgage default insurance premium, so an insured purchase finances the premium in the usual way with no premium-tax line at closing. And there is no speculation or non-resident transfer tax layered onto ordinary purchases by people moving to the province: buyers relocating from Ontario or BC meet a simpler border here than the one Nova Scotia's 10% non-resident deed tax creates going the other way.

Line 3: HST on new construction

Resale homes are generally exempt from HST. Newly built homes in New Brunswick carry HST at 15% on the purchase price, softened by the federal GST/HST New Housing Rebate, which phases out between $350,000 and $450,000 of value, and, for qualifying first-time buyers, the First-Time Home Buyers' GST/HST rebate on the federal portion, up to $50,000 on homes up to $1 million. Builder agreements also commonly pass levies, development charges, and occupancy-related amounts to the buyer at closing under the agreement's schedule of additional costs. Compare a new build to a resale home on tax-inclusive, rebate-adjusted cash to close drawn from the builder's own schedule, never on sticker price. Substantially renovated homes can also attract HST; get the tax treatment confirmed in writing before conditions expire. The rebate math is worked in full in our GST/HST new housing rebate guide.

Lines 4 to 8: Registration, legal, and the rest of the stack

• Service New Brunswick registration: the transfer of title and the mortgage are each registered through Service New Brunswick's land registration system, for registry fees that are modest next to the transfer tax. Confirm the current fee schedule with your lawyer, since registry fees are set provincially and revised from time to time.
• Legal fees and disbursements: New Brunswick purchases are handled by a lawyer, who searches title or the certificate of registered ownership, prepares the transfer and mortgage documents, obtains the real property tax certificate and water and sewer certificates where applicable, and remits the transfer tax. Identification rules for registered documents are strict in New Brunswick: names on registered documents must match the naming records the province specifies, which is a small administrative reason to give your lawyer your identification exactly as it appears on your birth certificate or passport early in the file. Ask for a written quote separating the professional fee from disbursements.
• Title insurance or survey: commonly used in place of, or alongside, an up-to-date survey. Ask whether your lender requires a policy and whether an owner's policy makes sense for the property type. Older rural properties and properties with boundary history carry more title work than a standard suburban resale.
• Appraisal: ordered by the lender where required, typically at the buyer's cost. Properties that are unusual for their market attract more valuation scrutiny; budget the time as well as the fee.
• Home inspection: optional and recommended, paid before closing. New Brunswick's housing stock puts specific items on the list: oil tank age and condition where oil heat remains, moisture and basement water entry in older housing, roofing under Maritime weather exposure, and the condition of private wells and septic systems outside municipal services.
• Adjustments: property taxes, municipal water and sewer charges, and prepaid fuel are adjusted to the closing date. On an oil-heated home, a full tank at closing is a four-figure reimbursement to the seller, and it surprises out-of-province buyers every season.
• Home insurance: must be in place for closing, with proof to the lender before funds advance. Start the insurance conversation when the offer firms up, not the week of closing.

The full stack at three price points

The examples use the verified 1% rate, with price and assessed value assumed equal; if your target property is assessed above your price, run the tax on the assessment instead. Legal and service amounts are planning allowances, not quotes. The down payment is separate cash, shown for scale. Reference prices from our October 2026 city dataset: Moncton averages about $399,740, Fredericton about $400,000, and Saint John about $318,780.

$320,000 resale in Saint John, 20% down: transfer tax $3,200; registration, legal, inspection, appraisal, and adjustments on top. Cash to close beyond the $64,000 down payment: roughly $6,000 to $8,500.

$400,000 resale in Moncton or Fredericton, 10% down: transfer tax $4,000; the CMHC premium is financed with no provincial tax on it; professional stack on top. Cash to close beyond the $40,000 down payment: roughly $7,000 to $9,500.

$500,000 resale, 20% down: transfer tax $5,000; no insurance premium; professional stack somewhat larger in absolute terms. Cash to close beyond the $100,000 down payment: roughly $8,000 to $11,000.

As a share of price, a New Brunswick resale closing clusters around 1.75% to 2.25%, low in the federal 1.5% to 4% guideline band, because the flat 1% does not stack with municipal taxes or premium taxes. The planning consequence is predictability: once you know the assessed value, the largest single line in your closing budget is known to the dollar weeks before closing. The two ways New Brunswick buyers still get surprised are the assessed-value rule and the fuel adjustment, and both are knowable in advance.

New Brunswick closing discipline

1. Get the property's current assessed value from your lawyer or realtor before the offer firms up, and budget the transfer tax on the higher of price or assessment.
2. Do not wait for a first-time buyer rebate. There is none. The full 1% is due at registration.
3. Give your lawyer identification that matches your registered name exactly, early; New Brunswick's naming rules for registered documents are enforced at registration, not negotiable at the counter.
4. Ask early about oil or propane in the tank and settle how fuel is adjusted. It is the adjustment most likely to surprise a buyer arriving from a natural-gas province.
5. On a new build, model HST at 15% net of the rebates available to you, plus the builder's schedule of pass-through charges, before comparing to resale.

Mistakes to avoid

• Budgeting 1% of the price when the assessment is higher. The tax is 1% of the greater of the consideration or the assessed value. On a discounted purchase, the discount does not reduce the tax.
• Assuming a first-time buyer exemption exists. Ontario, BC, and PEI all relieve first-time buyers in some form. New Brunswick does not. The full 1% applies to a first home exactly as to a fifth.
• Quoting the pre-2016 rate. Older New Brunswick purchases paid 0.5% or 0.25%. Family advice based on a 2014 closing understates today's tax by half or more.
• Missing the fuel adjustment. Prepaid heating oil and propane are reimbursed at closing and can add over a thousand dollars on an oil-heated home.
• Comparing a new build to resale on sticker price. HST, rebates, and builder pass-through charges decide that comparison, and none of them appear in the list price.

New Brunswick next to the rest of the series: the same house, four closing bills

Price a $400,000 resale home with 10% down across the guides in this series, government transfer charges only:

Jurisdiction	Transfer charge	Tax on CMHC premium	Transfer-side total, approx.
New Brunswick	$4,000 real property transfer tax (1% of price or assessment, whichever is greater)	None	$4,000
Prince Edward Island (buyer who is not a first-time buyer)	$4,000 real property transfer tax (1%)	None	$4,000
Nova Scotia (1.5% municipality, resident buyer)	$6,000 municipal deed transfer tax	None	$6,000
Manitoba	About $4,500 land transfer tax at this price after its graduated brackets	None (removed 2020)	About $4,500

New Brunswick and Prince Edward Island charge the same headline rate on the same base definition, and diverge on exactly one point: PEI waives the whole tax for qualifying first-time buyers and New Brunswick waives it for nobody. At Atlantic Canada price levels the difference is the full $4,000 on this example, which is real money in a first-home budget and a legitimate factor when a household is choosing which side of the Confederation Bridge or the Nova Scotia border to settle on. Against Nova Scotia, New Brunswick's flat 1% is the cheaper structure at every price, because Nova Scotia's full-rate municipalities charge 1.5% from the first dollar. Where New Brunswick is genuinely uncompetitive is against the no-tax provinces in this series, Alberta and Saskatchewan, where the transfer line is registration fees only; nothing in the New Brunswick stack answers that except the province's lower purchase prices themselves.

A New Brunswick cash-to-close checklist

Every line should carry a real figure and a named source before conditions expire.

• Real property transfer tax: 1% of the greater of your price or the assessed value, confirmed against the current assessment before the offer firms up.
• Exemptions: if your transfer is between spouses, under a will, or otherwise inside the Act's list, the exemption confirmed with your lawyer in writing.
• Service New Brunswick registration fees for the transfer and the mortgage: confirmed at current registry rates.
• Legal fee and disbursements: written quote, with well, septic, or title complications flagged if the property needs them.
• Appraisal and inspection: booked inside the condition window; oil tank, moisture, roofing, and water testing on the inspector's list where applicable.
• Fuel adjustment: the quantity and price of oil or propane in the tank settled before closing day.
• Tax, water, and sewer adjustments: calculated to the closing date from actual bills and certificates where available.
• Insurance binder: bound for closing day.
• New-build extras (if applicable): HST at 15% net of the rebates available to you, plus the builder's full schedule of pass-through charges.
• Post-closing reserve: first property tax instalments and utility connections budgeted beyond the statement of adjustments.

Timing: when each dollar is actually due

The deposit on your offer is part of the down payment and is the first closing-related cash out. Inspection, appraisal, and any well or water testing are paid during the condition period. At closing your lawyer assembles the balance of the down payment, the transfer tax, registration fees, the legal account, and adjustments, including the fuel reimbursement, and registers the transfer and mortgage through Service New Brunswick. The transfer tax is a registration input, not a bill that arrives later: no tax, no registration, no keys. After possession, the provincial property tax calendar takes over; New Brunswick bills property tax provincially rather than municipally, and buyers arriving from Ontario or Nova Scotia should ask at closing when the first full bill lands and whether the seller's payments were credited in the adjustments. If you bought below assessment, keep the assessment notice when it arrives: the same assessed value that set your transfer tax sets your property tax, and the appeal window on a new purchase is the cheapest chance you will get to challenge a value the province has already used against you twice.

What to read next

• Closing costs in Prince Edward Island: the same 1% on the same base, with the first-time buyer exemption New Brunswick does not offer.
• Closing costs in Nova Scotia: the municipal deed tax patchwork and the 10% non-resident tax on the other side of the border.
• Closing costs in Canada: the cash-to-close hub: the full national table, including the provinces with no transfer tax at all.
• Down payment rules in Canada: the separate half of your closing funds, and the federal supports that actually exist for first-time buyers.

Citations: Real Property Transfer Tax Act (New Brunswick) and Government of New Brunswick / Service New Brunswick guidance: real property transfer tax of 1% of the greater of the consideration or the assessed value for deeds registered on or after April 1, 2016 (0.5% from June 1, 2012 to March 31, 2016; 0.25% before), exemptions for spousal transfers, executor-to-beneficiary transfers under a will, Crown corporations, transfers securing a debt, and leases under 25 years; no first-time buyer rebate. Financial Consumer Agency of Canada, Buying a Home (canada.ca: budget 1.5% to 4% of the purchase price for upfront costs). City reference prices from the BubbleWatch affordability dataset, October 2026. Registry and legal fees vary by provider and are revised from time to time; obtain written quotes and confirm the current assessed value for your property.