Residential Taxes in the Halifax, Nova Scotia area
Property taxes in Halifax Regional Municipality (HRM) are calculated by multiplying the tax rate by the assessed value. The "assessed value" is the value put on the property each year by the Province of Nova Scotia. The assessed value is for tax purposes only and can't be used to estimate real estate market value.
How property taxes are calculated
The way it works is that a basic rate has been set for urban, suburban and rural properties. Each area then pays additional taxes depending on the services they receive. The rate for properties outside the urban area is less because they have less services. For example the tax rate for Halifax, Dartmouth, Bedford and Sackville is about $1250 (1.25%) per $100,000 of assessed value. Fall River and Hammonds Plains are about $1100 (1.10%) per $100,000. Assuming a property was assessed for $300,000 in Halifax, Dartmouth, Bedford or Sackville you would pay approximately $3750 a year in property taxes but if you lived in Hammonds Plains or Fall River you would only pay $3300. The difference is about 15%.
Current Market Value Assessment and Capped Rate Assessment
To protect homeowners a "cap" is now placed on a property so the increase in "capped" assessed value cannot be more than the rate of inflation. So now there are two assessed values to be aware of. One is the "capped rate assessed value" which the value the current seller is taxed on. The other is "market assessed value". This is the assessed value the new owner will pay on. The "market value assessed value" is almost always higher than the "capped" assessed value. There can be a significant difference in these values and as a result there may be a big difference in the taxes the current owner pays and what you will pay when you take possession. Finding out what the current seller now pays is not really relevant. You will need to estimate the property taxes you will pay based on the "market value assessment".
Property Tax rates for Halifax Nova Scotia
The average property tax rate in urban core in Halifax Dartmouth Bedford or Sackville is about $1.25 per $100 of assessed value and the average property tax in Fall River, Hammonds Plains and other suburban locations is about $1.10 per $100 of assessed value.
Halifax Dartmouth and area Property Tax Calculator
To calculate the property taxes for a property in the Halifax and surrounding areas do the following:
Market Value Assessment $ _______________ / 1000 = ___________ x $1.25 ( if urban) or $1.10(suburban) = _____________
© Copyright Sandy and Judy Hines. 2015