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If you're buying a property in the Halifax area then you should understand all of the costs associated with that purchase. One of the costs that you need to consider is property taxes.
The amount a property will be taxed is calculated buy multiplying the tax rate by the assessed value of the property.
Assessed Value - The taxable value of your property as determined by the province. This is not the market value of your home.
Capped Rate Assessed Value - The value of the property that the current owner is taxed on. This rate is "capped", which means that the yearly increase is restricted to the rate of inflation.
Market Assessed Value - The assessed value of the property that a new owner would be taxed on. This rate is usually higher than the current Capped Rate Assessed Value and means the new owner could pay more than the current owner in yearly taxes. When estimating what your tax bill will be you will need to use this Market Assessed Value.
For the Halifax area, the basic tax rate is set by the location of the property. Properties located in the urban core (Halifax, Dartmouth, Bedford, Sackville) are taxed at a rate of 1.25% per $100,000 of assessed value. Properties located in suburban areas (Middle Sackville, Beaverbank, Fall River, Hammonds Plains, etc.) are assessed at a lower rate of 1.10% per $100,000 of assessed value as they tend to have access to less services.
The amount a property will be taxed is calculated buy multiplying this basic tax rate by the assessed value of the property.
Market Value Assessment $ X Basic Tax Rate / 100 = Property Taxes
Yearly Taxes / Based on Assessed Value
For more information on property taxes, tax policy, etc., click on the button below.