Prince Edward Island real property transfer tax in 2026

The tax is set by the provincial Real Property Transfer Tax Act. Section 3(1) states that every person who tenders a deed for registration "shall, before the deed is registered, pay a tax computed at the rate of one percent of the greater of (a) the consideration for the transfer; and (b) the assessed value of the real property." The province's information page, published April 8, 2026, gives the same rate: "1% of the greater of: the purchase price of the real property; or the assessed value of the real property."

The rate is flat, with no brackets. Under section 4(2), no tax is payable where the greater of the price and the assessed value "does not exceed $30,000"; above that, the 1% applies to the full value.

Worked example: a $350,000 home in Charlottetown assessed at $320,000 is taxed on the price: 1% x $350,000 = $3,500. If it were assessed at $380,000, the tax would be $3,800.

Registration fees are separate. Under section 50.1 of the Registry Act, registering a deed of conveyance for property valued at "$200,000 or greater" costs $463.65, and a mortgage of $200,000 or more costs another $463.65.

The Act charges the tax to "every person who tenders for registration in the province a deed", payable before the deed is registered. The province states that "anyone who registers a deed of conveyance" must pay "at the time of registration", and that the tax "is calculated and paid when the deed of conveyance is registered with the Registrar of Deeds."

Before the deed can be registered, the purchaser must file an Affidavit of Purchaser with the Registrar of Deeds. In it the purchaser swears to the consideration paid and states whether the purchase is subject to the tax and, if not, the reason for the exemption.

The tax is charged on the greater of the consideration for the transfer and the assessed value. The Act defines assessed value by reference to "the current assessment roll maintained by the Minister under the Real Property Assessment Act". Where only part of an interest is transferred, the assessed value is pro-rated by the share transferred (s. 3(2)).

If the price was below the assessed value, the province says the purchaser still pays at registration but may ask Taxation and Property Records to review the assessment. If the assessed value is adjusted, the adjustment takes effect on the date of conveyance and the purchaser can request a refund. See assessment in Prince Edward Island.

Under section 5(2) of the Act, no tax is payable if the purchaser "is a first-time home buyer and files a declaration to that effect on the registration of the deed" and "intends to occupy or use the real property as his or her principal residence."

Under section 5(1), a first-time home buyer is an individual buying property containing a residence who:

- is a Canadian citizen or permanent resident; - has kept a principal residence in PEI for at least six months immediately before registration, or has been subject to PEI income tax and filed a return in at least two of the six preceding taxation years; - has not previously held a registered interest in property that was their principal residence; and - has not previously obtained the exemption.

The regulation's prescribed maximum dollar amount was "Revoked by EC428/16." Tax becomes payable if the home is not the buyer's principal residence for at least 183 consecutive days after registration. A buyer who failed only the PEI-residence test may apply for a refund after 183 consecutive days of occupancy (s. 5(4)). See first-time buyer relief across Canada.

The Real Property Transfer Tax Act has no extra rate for non-residents; the same 1% applies. Land ownership is limited instead by the Lands Protection Act. The Island Regulatory and Appeals Commission states that "A non-resident person or corporation, or a resident corporation must make application if the person or corporation will have an aggregate land holding in excess of 5 acres, or having shore frontage in excess of 165 feet." Executive Council makes the final decision. Since April 1, 2022, the application is needed whenever any number of non-residents or corporations are acquiring such a parcel together.

For this purpose a resident is a Canadian citizen or permanent resident who has lived in PEI for at least 365 days in the 24 months before acquiring the land and files a PEI tax return. The federal ban on purchases by non-Canadians also applies until its repeal on January 1, 2027. See non-resident taxes.

Besides the first-time buyer and $30,000 exemptions, section 4(1) of the Act lists deeds on which no tax is payable, including:

- transfers to a member of the family (parents, spouse, common-law spouse, grandparents, children, siblings, grandchildren, in-laws and step-relatives) "without any consideration, in excess of $1"; - transfers between spouses or former spouses under a written separation agreement or a court order under the Family Law Act; - deeds of confirmation, rectification or modification, consolidations, and changes between joint tenancy and tenancy in common; - transfers from an executor or administrator to beneficiaries or heirs; - transfers to or from a trustee holding for the transferor, and certain bankruptcy and mortgage-default transfers; - transfers to a corporation wholly owned by the transferor (tax becomes payable if that ownership ends within twelve months, s. 4.1); - transfers to the Government, a municipality or a registered non-profit organization.

April 8, 2026: the province's Real Property Transfer Tax information page was published, stating the rate as 1% of the greater of the purchase price and the assessed value.

2026: the Act was amended by 2026, c. 11, s. 3, which changed definitions in section 1. The rate in section 3 and the first-time buyer exemption in section 5 are unchanged in the consolidation current to May 29, 2026.

April 1, 2022: the Lands Protection Act began requiring an application whenever any number of non-residents or corporations acquire a parcel over 5 acres or with more than 165 feet of shore frontage.

January 1, 2027 (scheduled): repeal of the federal ban on purchases of residential property by non-Canadians.