How Property Taxes are Calculated in the Halifax (HRM), Nova Scotia Area

Property taxes in Halifax Regional Municipality (HRM) are calculated by multiplying the tax rate by the assessed value divided by 100. The Province of Nova Scotia assigns this value to the property each year for tax purposes only, and it cannot be used to establish the market worth of real estate. However, it is critical to understand how property taxes are calculated in the HRM, especially if you are acquiring a new home here. There are two types of evaluations in the HRM: capped rate assessments and current market value assessments.

The Canadian government has introduced new legislation known as the Prohibition on the Purchase of Residential Property by Non-Canadians Act, to address housing affordability and accessibility issues in Canada. The Act which went into effect on January 1, 2023 and forbids non-Canadians from purchasing Canadian residential property for two years. This legislation is a response to the high housing costs which have been a major source of anxiety for many Canadians trying to buy a home in recent years. The legislations’ purpose is to ensure that Canadian residential properties are largely sold to Canadian buyers.

What’s included in Residential Properties?

On April 1, 2022, the Province of Nova Scotia implemented a new non-residential deed transfer tax called the Non-Resident Provincial Deed Transfer Tax. This tax will affect property transactions in Nova Scotia.

Non-Resident Provincial Deed Transfer Tax

The Non-resident Deed Transfer and Property Taxes Act applies to the transfer of ownership of non-residential properties, such as commercial and industrial properties, within the province of Nova Scotia. This new tax will be applied at a rate of 2% of the purchase price of the property, with certain exceptions. The purpose of this tax is to make non-residential property ownership more accessible to Nova Scotians, as it is believed that non-resident ownership has contributed to the increase in property prices in the province. This new tax will be administered by the Department of Municipal Affairs, and will be collected at the time of the transfer of ownership. It is important for anyone considering the purchase of a non-residential property in Nova Scotia to be aware of this new tax, and to factor it into their financial planning.

If you're looking to invest in Halifax real estate, the first step is to find a REALTOR. Investing in property is different from buying or selling a home, so it's important to find an agent with the right qualities, experience, and services for your needs. This is what we deem to be essential:

 1.        Real estate agents who assist investors are not intimidated by numbers. It is essential that your agent can view properties from a financial point of view, whether it be helping you calculate potential ROI, cash flow or cap rates. REALTORS usually help their residential clients evaluate properties based on lifestyle and affordability, but if you want to build a real estate portfolio, even if it's just a second property, you need someone who can help you understand the financials.

Of late, there is an enormous amount of news coverage regarding rising interest rates and inflation. And for good cause. The rising cost of food, gas, and housing are affecting us all. These necessities and their impact on our wallets bring home the message loud and clear. Interest rates are rising.  Inflation is out of control. And how they are intertwined is a delicate relationship.

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We can definitely fill you in on details that are not listed on the report and help you determine the best home for you. If you are wondering if now is the time to sell, please try out our INSTANT home value tool. You’ll get an estimate on the value of your property in today’s market. Either way, we hope to hear from you soon as you get to know our neighborhoods and local real estate market better.