Halifax councillors say they’re getting an earful from residents who are concerned about a possible double-digit hike in property tax bills.
“These constant increases year after year you’re having, how do you guys even consider this? I may have to lose my house,” Lower Sackville – Beaver Bank Coun. Billy Gillis read in a letter from a constituent during budget deliberations Wednesday.
Gillis told fellow councillors residents are worried about an average 10.5-per cent property tax bill increase that was suggested by municipal staff as part of 2026-27 budget discussions.
Fellow councillor Jean St-Amand, who represents Bedford – Wentworth, has been hearing similar complaints, and agrees that concern is mounting.
“We recognize that residents really only have one wallet and so we do not want to be taking more than we need in order to provide them with the services that they value in the city,” St-Amand told Global News.
Mayor says suggested hike is ‘simply too high’
Halifax’s budget committee is in the midst of discussions ahead of the 2026-27 budget. On Wednesday, municipal staff presented its forecast, which included a projected increase of $88.9 million in expenses.
To fund those costs, staff are recommending a hike that would increase average property bills by 10.5 per cent.
Dave Harley, HRM’s director of financial management, told councillors that while there has been a significant population growth in the municipality, it “hasn’t necessarily been seen in the housing market.”
“So we we’ve had an increase in the people that we’re serving, but without having that similar increase in the number of properties that have come online (…) and are now paying property tax,” he explained.
Staff said in their report that they’re looking to keep overall spending flat, allowing only for what they call “unavoidable increases.” This could include increases due to inflation, previously-approved projects, and mandatory provincial contributions.
However, Mayor Andy Fillmore said the increase is “simply too high” and put forward a motion asking staff to find more savings.
He proposed a 10 per cent reduction in program grants, reducing the climate action tax by one-third, and implementing a hiring freeze.
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“A 10.5-per cent increase to the average property tax bill is simply too high, and as the report forecasts, that would yield even higher rates in the future, up to even 12 per cent in years three and four,” Fillmore said.
“So we need to explore every possible way to reduce the burden on taxpayers.”
Council also passed a motion asking staff to suggest cuts in capital projects or projects that haven’t begun yet.
Tax hikes can hurt new buyers
Coun. St-Amand said costs are rising at a rate that’s not on par with the municipality’s revenue, but he hopes some balance can be found.
“It’s not likely that we’re going to get down to the exact same level that we were at last year, I just don’t think we have the mechanisms to do that but we’re going to make every effort to get it as low as we possibly can,” he said.
Last year, the tax rate was kept flat at 0.770. However, due to an increase in property assessment values, the municipal portion of residential tax bills went up by 4.7 per cent.
Factoring in provincial contributions and tax, the average residential bill increased by 5.2 per cent.
In Nova Scotia, the Capped Assessment Program (CAP) places a cap on the amount that the taxable assessment for eligible residential properties can increase year over year. The CAP is removed for the year following the sale of a property, unless it was purchased from a family member.
Experts say tax hikes can hurt new buyers the most because they’re paying the increase in assessment value plus property tax.
“Somebody who buys a house new, the assessment rejigs itself and ratchets up,” said Lars Osberg, an economics professor at Dalhousie University.
“And so the increase in taxes paid on the same property is the increase in the value of the property — the assessed value of property times the increase in the tax rate.”
Real estate agent Sandra Pike says a double-digit increase, if approved, couldn’t come at a worse time since utility costs are also on the rise.
“Now to add an additional, let’s say, maybe $500 a year plus your water increase plus your Nova Scotia Power increase, that particular house is probably going to be out of reach,” she said.
She’s calling for changes in how properties are assessed, saying two houses on the same street can have wildly different tax bills based on when it was purchased.
Hard to find places to cut spending
Meanwhile, councillors continue to struggle with the budget.
During discussions Wednesday, Coun. Sam Austin said he doesn’t think cutting public services equates to great savings.
“This year, we’re in a real tough spot where we are facing either a significant increase or significant service cuts, service cuts that people will feel,” he said.
Meanwhile, Coun. David Hendsbee said it’s too early to assume the property tax bill increase will end up at 10.5 per cent. He added it’s hard to imagine where staff will even find places to cut spending.
“We’re still going through the budgets. Wait till we get the big books in a few weeks time and then we go line by line, figure where we can shave here or shave there,” he said.
The committee will continue their discussions on Friday. A final decision on the budget will be made in April 2026.
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