Tax increase proposed as councillors begin discussions on $1.3B city budget

CITYnews halifax / By Dan Ahlstrand

Wednesday marked the beginning of work on Halifax Regional Municipality’s 2025-26 budget.

Regional councillors will roll up their sleeves today as work on the financial blueprint begins. The proposed budget, before deliberations, shows an annual spending increase of $69.7 million and a 2.7 per cent increase in municipal tax rates. Factoring in this tax increase along with a 4.7 per cent rise in property assessments, the total increase would land taxpayers at 7.6 per cent.

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For the average single-family home in HRM, this results in an additional $189 per year.

According to the staff report on the budget, the increase is driven by compensation hikes, inflation, capital funding needs, and the growing demands of a larger population. The report also notes rising utility, fuel, and construction material costs contributing to the budget’s pressures.

The city’s budget committee will begin deliberating the $1.3 billion budget at a meeting today, as residents face higher taxes amid increasing living costs and service demands.

Last year, Regional Council approved the 2024/25 Budget, which included a municipal tax rate increase a total average tax bill increase of 6.3 per cent.

Read the budget documents here