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 capped rate assessment limits the amount by which the taxable assessment for qualified residential property can increase year after year. A residential property must meet the following conditions to be eligible for the capped rate assessment:
- It must be at least 50% owned by a Nova Scotia resident.
- It must have less than four dwelling units or be a vacant resource property, including manufactured homes, manufactured home parks, cooperative housing, and the residential or resource portions of a commercial farm.
- If it is a condominium, it must be occupied by the owner.
- The property must have been owned for at least a year, or the ownership must have remained within the family.
The CAP is now based on the Nova Scotia Price Index (CPI), which has been set at 7.7% for 2023 (source: https://www.pvsc.ca/understand-your-assessment/capped-assessment-program).
The current market value assessment is based on market value using a mass appraisal procedure. Every year, this method is utilized to determine the worth of about 634,000 properties. The assessments are determined by assessing 12 months of sales data and financial information, as well as numerous property attributes, and are based on market facts rather than projections. The 2023 property assessment considers:
- The property's market worth on January 1, 2022, based on sales and information from the 2021 calendar year (January 1, 2021 to December 31, 2021).
- The property's attributes and physical condition as of December 1, 2022.
If you just purchased a property that was previously part of the CAP program, you will be ineligible for the CAP program and may face a considerable rise in property taxes (source: https://www.pvsc.ca/understand-your-assessment/property-assessment-nova-scotia).
Calculating Property Taxes in Halifax
The calculation of property taxes in Halifax involves setting a standard rate for urban, suburban, and rural properties. The specific amount paid in additional taxes depends on the services provided to each area. Properties located outside urban areas have a lower tax rate due to fewer services being provided. For instance, the tax rate in Halifax, Dartmouth, Bedford, and Sackville is around $1,210(1.21%) per $100,000 of assessed value, while in Fall River and Lucasville it is approximately $1,150 (1.15%) per $100,000. As an example, if a property is assessed at $300,000 in Halifax, Dartmouth, Bedford, or Sackville, the owner would pay approximately $3,630 in property taxes per year. However, if the property was in Lucasville or Fall River, the owner would pay $3,450, representing a difference of about 5%. Or, if it were in a rural area the owner would pay approximately $3,060(1.02%) of an assessed value of $300,000, which represents a difference of 18% compared to urban areas and 13% compared with suburban areas.
Capped Rate Assessment vs Current Market Value Assessment
To protect homeowners, a cap has been placed on a property to limit the increase in the assessed value to the rate of inflation. This has resulted in two types of assessed values to consider. The "capped rate assessed value" is the value the current seller is taxed on, while the "market value assessed value" is what the new owner will pay taxes on, and it is usually higher. As a result, there can be a significant difference between the taxes the current owner pays compared with what a new owner will pay after about one year of past possession. Hence, what the current owner pays will be important for your mortgage financing, it can be misleading because the following year it is very likely that the new rate will be increased to reflect the market value (i.e.: the purchase price). Thus, it’s important to know and plan for the property taxes will be based on the "market value assessment."
HRM Property Tax Calculator
To calculate the property taxes for a property in the Halifax and surrounding areas do the following:
Market Value Assessment (purchase price) $ _______________ / 100 = ___________ x $1.21 ( if urban) or $1.15(suburban) or $1.02(rural) = _____________
|
Assessed Value |
$200,000 |
$300,000 |
$350,000 |
$400,000 |
$500,000 |
$750,000 |
|
Urban: |
|
|
|
|
|
|
|
Halifax City |
$2420 |
$3630 |
$4235 |
$4840 |
$6050 |
$9075 |
|
Dartmouth |
$2420 |
$3630 |
$4235 |
$4840 |
$6050 |
$9075 |
|
Bedford |
$2420 |
$3630 |
$4235 |
$4840 |
$6050 |
$9075 |
|
Lower Sackville |
$2420 |
$3630 |
$4235 |
$4840 |
$6050 |
$9075 |
|
Timberlea |
$2420 |
$3630 |
$4235 |
$4840 |
$6050 |
$9075 |
|
Suburban: |
|
|
|
|
|
|
|
Middle Sackville |
$2300 |
$3450 |
$3850 |
$4600 |
$5750 |
$8625 |
|
Windsor Junction |
$2300 |
$3450 |
$3850 |
$4600 |
$5750 |
$8625 |
|
Fall River/Waverley |
$2300 |
$3450 |
$3850 |
$4600 |
$5750 |
$8625 |
|
Lucasville |
$2300 |
$3450 |
$3850 |
$4600 |
$5750 |
$8625 |
|
Cow Bay |
$2300 |
$3450 |
$3850 |
$4600 |
$5750 |
$8625 |
|
Rural: |
|
|
|
|
|
|
|
Upper Sackville |
$2040 |
$3060 |
$3570 |
$4080 |
$5100 |
$7650 |
|
Beaver Bank |
$2040 |
$3060 |
$3570 |
$4080 |
$5100 |
$7650 |
|
Hammonds Plains |
$2040 |
$3060 |
$3570 |
$4080 |
$5100 |
$7650 |
|
Lawrencetown |
$2040 |
$3060 |
$3570 |
$4080 |
$5100 |
$7650 |
|
Harrietsfield |
$2040 |
$3060 |
$3570 |
$4080 |
$5100 |
$7650 |
Source: https://www.halifax.ca/home-property/property-taxes/tax-rates