Halifax Council Urges Province to Review Property Tax Cap System Over Equity Concerns
Halifax regional council voted 12-5 to ask the Nova Scotia government to review the Capped Assessment Program, which a staff report says creates significant property tax inequities between long-term homeowners and new buyers.
A Halifax Regional Municipality (HRM) staff report has highlighted significant inequities in Nova Scotia’s Capped Assessment Program (CAP), prompting city council to call on the provincial government for reform. Established in 2005, the program ties property tax assessment increases for eligible long-term homeowners to the Consumer Price Index rather than market conditions.
According to the report, between 79% and 83% of residential properties in Halifax were capped under the program in 2026. This leaves 17% to 21% of properties—primarily those owned by new homebuyers and non-owner-occupied units—to pay a disproportionately higher share of taxes. The gap between the market value and taxable value of homes widened from 10% in 2010 to 27.5% in 2026 as a result of the CAP's structure.
The disparities are visible at the neighborhood level. On a single street in Dartmouth, 2026 property tax bills for similar homes ranged from $4,400 to $7,800, with the difference attributed to how long the homeowners had lived there. In south-end Halifax, homeowners pay about $3,800 more annually on average because only 60% of single-family homes in the area are capped, combined with a high number of ineligible non-owner-occupied condos.
On Tuesday, HRM council passed Coun. Janet Steele’s motion by a vote of 12 to five. The motion asks the mayor to request that the provincial municipal affairs minister review the CAP report and work on solutions to improve fairness and housing affordability.
The staff report indicates that removing the CAP would not increase total municipal revenue but would redistribute the tax burden. If eliminated, approximately 16,000 homeowners would pay less in taxes, and the urban residential tax rate could drop by about 24%, falling from $1.135 to $0.854 per $100 of assessed value. Apartment buildings with four or more units would save an average of $16,200 to $16,300 in 2026, equivalent to roughly $519 per unit.
The report also notes that non-profits and charitable housing providers are not eligible for the CAP, creating a competitive imbalance that disadvantages affordable housing providers compared to for-profit entities.
During discussions, Coun. Sam Austin suggested potential reforms such as removing the cap for vacation homes or limiting tax benefits for multi-million dollar properties, noting these changes might be politically easier to implement than eliminating the CAP entirely.