Halifax to consider service cuts, fee increases to bring down 10.5% property tax hike

Halifax council will consider cutting services and grants and increasing user fees in an effort to reduce a tax bill increase for next year’s budget.

On Wednesday, the city’s budget committee made up of councillors and the mayor met to kick off discussions for the 2026-27 budget.

Financial staff said as of now, the average residential property tax bill would rise 10.5 per cent to cover an about $88.9-million increase over the 2025-26 budget. That works out to roughly an extra $276 a year on the average residential property tax bill, staff said.

That increase comes even with holding spending to this year’s levels, and is driven by what staff call “unavoidable increases” like inflation, contractual obligations and mandatory provincial contributions.

Mayor Andy Fillmore said 10.5 per cent is still “simply too high” and council must make changes to bring that down.

“We need to explore every possible way to reduce the burden on taxpayers,” Fillmore said during the meeting.

“As our residents are tightening their belts, so too must we.”

He said changes now could be beneficial in future years, which are forecasted to see annual tax bill raises ranging from eight to 12 per cent each year as the city’s debt climbs and pressures from other major projects continue. 

Council passed Fillmore’s motion asking staff to come back with a slew of options over the coming months of budget debate to reduce the tax bill increase.

They include having all departments propose service reductions, increases to user fees and fines, a hiring freeze, reducing contribution agreements for groups like the Halifax Partnership or museums, reducing the climate action fund by one-third, and a 10 per cent cut to program grants.

Council also passed Coun. Trish Purdy's request to have staff suggest possible cuts in capital spending or projects that were approved in previous years that have yet to begin.

Coun. Billy Gillis of Lower Sackville-Beaver Bank said he hears from residents every day asking him to find ways to keep property taxes from rising. 

He read an email from a veteran who said the proposed tax hike has him wondering whether he must sell his home, as it comes on top of rising utility bills and health-care expenses for his family.

“I think we need to look at this with an affordability lens, and nothing else more,” Gillis said.