Halifax

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Taxation

Understanding local tax systems, including income tax, sales tax (HST), and property tax requirements.

Sections

1. Income Tax

Income tax in Halifax, like the rest of Canada, is administered at both the federal and provincial levels. Residents of Halifax pay income tax to the Canada Revenue Agency (CRA), which collects taxes on behalf of the federal government and the Province of Nova Scotia.

Federal and Provincial Tax Rates (2023)

  • Federal Income Tax Rates:

    • 15% on the first $53,359 of taxable income
    • 20.5% on the next $53,359 (up to $106,717)
    • 26% on the next $58,337 (up to $165,054)
    • 29% on the next $63,783 (up to $235,835)
    • 33% on income over $235,835

  • Nova Scotia Provincial Income Tax Rates:

    • 8.79% on the first $29,590 of taxable income
    • 14.95% on the next $29,590 (up to $59,180)
    • 16.67% on the next $33,820 (up to $93,000)
    • 17.5% on the next $57,000 (up to $150,000)
    • 21% on income over $150,000

Filing and Payment Procedures

  • Filing Deadline: April 30 of each year for the previous tax year (e.g., April 30, 2024, for the 2023 tax year).
  • Self-Employed Individuals: The filing deadline is June 15, but any taxes owed must still be paid by April 30.
  • How to File:
    • Online via CRAโ€™s "NETFILE" system using certified tax software (e.g., TurboTax, UFile).
    • By mail using a paper tax return form.
    • With the help of a tax professional or accountant.
  • Payment Methods:
    • Online banking or CRAโ€™s My Payment service.
    • Pre-authorized debit.
    • Cheque or money order sent to the CRA.

Tax Credits and Deductions

  • Federal and provincial tax credits are available, such as the Canada Child Benefit (CCB), GST/HST credit, and Nova Scotia Affordable Living Tax Credit.
  • Deductions include RRSP contributions, childcare expenses, and moving expenses (if relocating for work or school).

2. Property Tax

Property tax in Halifax is administered by the Halifax Regional Municipality (HRM). It is based on the assessed value of your property, as determined by the Property Valuation Services Corporation (PVSC).

Rates and Costs

  • The property tax rate is a combination of the municipal tax rate and the provincial tax rate.
  • For 2023, the residential property tax rate in Halifax is approximately 1.2% of the assessed property value.
    • Example: If your home is valued at $300,000, your annual property tax would be around $3,600.
  • Commercial property tax rates are higher than residential rates.

Payment Procedures

  • Property tax bills are issued twice a year: Interim Bill (March) and Final Bill (September).
  • Payment Methods:
    • Online banking or through your financial institution.
    • Pre-authorized payment plans (monthly or annual).
    • In-person at HRM Customer Service Centres.

Tax Relief Programs

  • Low-Income Property Tax Exemption: Available for eligible low-income homeowners.
  • Deferral of Property Taxes: Seniors may qualify to defer property taxes under certain conditions.

Contact Information

  • Halifax Regional Municipality Tax Office:
    Phone: 311 (local) or 1-800-835-6428 (toll-free)
    Website: www.halifax.ca

3. Sales Tax (HST)

Halifax, like the rest of Nova Scotia, has a Harmonized Sales Tax (HST), which combines federal and provincial sales taxes.

HST Rate

  • The HST rate in Nova Scotia is 15%:
    • 5% federal portion
    • 10% provincial portion

What is Taxed?

  • Most goods and services are subject to HST, including retail purchases, dining out, and professional services.
  • Some items are exempt or zero-rated, such as basic groceries, prescription medications, and certain medical devices.

Rebates

  • The GST/HST Credit is a tax-free quarterly payment to help low- and modest-income individuals and families offset the cost of HST. You must file your income tax return to qualify.

4. Other Taxes

Fuel Tax

  • Nova Scotia imposes a fuel tax of 15.5 cents per litre on gasoline and diesel.

Carbon Tax

  • As of 2023, Nova Scotia has implemented a carbon pricing system. This tax is applied to fossil fuels and is designed to reduce greenhouse gas emissions.

Vehicle Registration and Licensing Fees

  • Vehicle owners in Halifax must pay annual registration fees and licensing fees. These are not technically taxes but are mandatory costs for vehicle ownership.

Sin Taxes

  • Higher taxes are applied to alcohol, tobacco, and cannabis products in Nova Scotia.

5. Filing and Administrative Resources

For any tax-related inquiries or assistance, the following resources are available:

Canada Revenue Agency (CRA)

  • Website: www.canada.ca/en/revenue-agency
  • Phone: 1-800-959-8281 (individuals) or 1-800-959-5525 (businesses)
  • Local Tax Services Office:
    1557 Hollis Street, Halifax, NS B3J 1V4

Halifax Regional Municipality (HRM)

Property Valuation Services Corporation (PVSC)

Community Resources

  • Immigrant Services Association of Nova Scotia (ISANS): Offers tax clinics and financial literacy programs for newcomers.
    Website: www.isans.ca
    Phone: 1-866-431-6472

  • Volunteer Tax Clinics: Free tax filing services for low-income individuals, often hosted by community organizations during tax season. Check the CRA website for locations.

6. Tips for Newcomers

  • Get a SIN (Social Insurance Number): You need a SIN to work and file taxes in Canada. Apply through Service Canada.
  • Keep Records: Maintain receipts, pay stubs, and other financial documents for at least six years in case of an audit.
  • Understand Residency for Tax Purposes: Even if you are a newcomer, you may be considered a resident for tax purposes if you have significant ties to Canada (e.g., home, family, job).
  • Use Tax Software: Many tax software programs are user-friendly and guide you through the process step by step.

By understanding these key aspects of taxation in Halifax, you can ensure compliance with local laws and take advantage of available credits and deductions. If you have further questions, feel free to ask!