Tax and Land Information Website
RPTTG:101 Changes to the First Time Home Buyer Exemption Requirements
|This Real Property Transfer Tax Guide provides information to Real Estate Agents, Legal Professionals and Home Buyers on changes to the eligibility criteria for the First Time Home Buyer’s transfer tax exemption.|
First Time Home Buyer Exemption
The Real Property Transfer Tax Act (the Act) requires that every person registering a deed in Prince Edward Island pay a tax equal to 1% of the greater of the purchase price or the assessed value of the real property. Certain types of real property transfers are exempt from this tax. For instance, no tax is payable on the registration of a deed of conveyance if the purchaser is a first time home buyer.
To qualify for the First Time Home Buyer exemption, an individual must first meet the definition of a “first time home buyer” set out in section 5(1) of the Act. Secondly, the first time home buyer’s real property transfer must satisfy certain criteria found in section 5(2) of the Act.
Changes to Definition of “First Time Home Buyer”
Effective April 28, 2006, the amount of time a purchaser must have continuously maintained his or her principal residence in Prince Edward Island in order to satisfy the Prince Edward Island residency requirement is reduced to not less than six (6) months immediately before the date the deed was registered.
Please Note: Showing that income tax were filed in the manner described in section 5(1)(a)(ii)(B) of the Act remains a valid method of fulfilling the PEI residency requirement.
Changes to Real Property Transfer Requirements
Effective April 28, 2006, the greater of the purchase price and the assessed value of the real property purchased by a first time home buyer must not exceed $200,000.00, in order to qualify for the exemption.
Eligible Transfers Occurring after April 27, 2006
An eligible first time home buyer who purchased a home after April 27, 2006 and did not receive the exemption, may request a refund of the tax on the prescribed form. This form can be requested from Taxation and Property Records Division, Finance, Energy and Municipal Affairs.
|Taxation and Property Records Division
Finance, Energy and Municipal Affairs
P.O. Box 1330
This guide is prepared for information purposes only, and should not be considered a substitute for the applicable statutes. Should there be any conflict between the contents of this guide and the statutes, the statutes shall prevail.