Whether you’re looking for a cozy cottage on the water or an expansive investment home, property taxes should be considered before closing on a deal. If not properly budgeted for, this ongoing expense can hurt your future wallet.
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As property taxes differ city to city, it’s important to research where you can find the best value for your specific situation. In many cases, average housing costs are higher in the areas with the lower property tax rates and vice versa. Take for example Halifax and Sydney, which have average home prices of $536,744 and $205,318 respectively. Despite having a tax rate of 2.266000 – more than double than that of Halifax at 1.084000 – a homeowner in Sydney would pay $1,165 less in taxes on a home at average price than someone in Halifax.
How does property tax work?
How much a home owner pays in property taxes is based on a number of factors including municipality tax rates, the most recent value assessment of the home, and the local real estate market. Value assessments depend on the property size, condition, renovations, or structural alterations, and whether or not it has a basement or pool.
In addition, the quantity and value of the city’s real estate influences the tax rate. As a result, large cities with thriving housing markets and a sizable tax base have more freedom to maintain a lower tax rate.
Another important consideration is the ratio of business to residential taxation in a city. Generally, companies pay at least twice as much in taxes as residents, however local governments may sometimes choose to raise residential taxes in order to provide companies with more competitive advantages.
St. John’s vs Saint John: Which Atlantic City Has the Lowest Property Tax?
We analyzed seven cities in eastern Canada and calculated the amount of property taxes a resident would pay on a home at the average price, $500,000, $1,000,000, and $1,500,000. The infographic below shows the highest and lowest property tax rates for 2023 based on the most recent rates.
With a property tax rate of 0.830000%, St. John’s came out on top with the lowest property tax rate on the east coast. On the opposite end of the scale, Saint John had the highest property tax rate of 2.271700%, nearly three times higher than St. John’s. This means someone with a $500,000 home in Saint John would pay more than double in property taxes than a St. John’s homeowner. Despite that difference, the average home price in Saint John is $47,900 lower than that of St. John’s.
For those prioritizing affordability, a $500,000 budget can take you far on the east coast as six cities on our list have an average home price below that mark. Though eastern Canada is a less expensive market than Ontario and British Columbia, it’s still important for prospective buyers to factor property taxes into their budget and plan accordingly. For more information, speak with the municipality directly or give us a call today to speak to a real estate agent in your area that can answer your questions about property taxes.
