Moving to Nova Scotia might seem like a dream come true, especially if you think you’ve had it with city living. After all, we have some of the most stunning coastal landscapes and charming small towns, and your dollar goes a lot further in Nova Scotia when you’re buying a home. However, my post “I regret moving to Nova Scotia,” is the most visited page on this website, so it’s clear that for some, the reality of a move to Nova Scotia isn’t lining up with their expectations.
In this post, I Regret Moving to Nova Scotia, Part 2, I’ll explore the potential downsides of moving to Nova Scotia, helping you make a well-informed decision about your next big move.
In my first post, I noted that rural living can be more isolating than people realize. You might not think you eat out or go to concerts all that often, but when the only restaurant is 40 minutes away, you can’t get a pizza delivered to your lovely country home, and none of the bands you enjoy bother to make a stop in Halifax, you might find that more depressing than you think. It’s also more expensive to live in Nova Scotia than people realize. The low house prices (compared to most places in Ontario at least) can trick people into thinking the cost of living overall is less expensive in Nova Scotia. It’s not! That’s what I’ll delve into in the rest of this post.
Property Taxes
Property taxes in Nova Scotia can be much higher than people expect. For instance, homeowners in Creston, British Columbia sold their house for $500,000, and had been paying $0.82 per $100 in assessed value. That was an annual bill of $4,099 in BC. Their new home in Annapolis Royal came with a tax rate of $1.70 per $100 in assessed value. So even though the Annapolis Royal home was worth less than half of their home in Creston, the tax bill was nearly identical. This website shows the municipal tax rate for all of Nova Scotia’s municipalities. Note that some municipalities may have additional fire tax rates, sewer rates, or other fees levied on top of the tax rate listed. As a REALTOR®, I encourage my buyers to reach out to the municipality for the house they’re interested in to find out the exact total tax rate that will be applied to that home. Asking for the tax bill for the previous owners is not effective in Nova Scotia because of the Capped Assessment Program (CAP).
The amount ‘capped’ is based on the Nova Scotia Consumer Price Index (CPI), which is set by Statistics Canada. Homes owned by residents of Nova Scotia are typically eligible for the CAP, which assists homeowners in staying in their homes longer with lower property taxes, even if the assessed value of the home rises significantly. This means that when a home is sold, the CAP resets. Your property tax bill will be higher than the previous owner’s bill. Then, as a new Nova Scotian resident, you’ll be eligible for protection under the CAP going forward.
Income Tax Rates
Nova Scotia’s income tax rates are some of the highest in Canada. Many newcomers are shocked to discover in March or April that they owe far more on their taxes than they were expecting. That’s typically because you file a return based on the province or territory you live in on December 31. The Canada Revenue Agency (CRA) (and Revenu Québec, if applicable), uses this information to calculate your and your spouse’s or common-law partner’s (if applicable) provincial taxes and credits. So if you lived in Ontario most of the year, your employer would have withheld your payroll taxes based on Ontario amounts. But if you move to Nova Scotia before the end of the year, even if it’s just days before the new year, you’ll owe Nova Scotia rates on the entire year’s income–and your previous employer would not have withheld enough tax.
Home Heating and Electricity
It’s difficult to compare heating and electricity costs as it’s so varied depending on whether you had natural gas, hydro, or something else before you moved to Nova Scotia. Many older homes in Nova Scotia still use expensive oil heat (I know people who spend $1,000 a month in the winter on oil). Even if you’ve installed an energy-efficient heat pump, if you’re in an older, poorly insulated home, your heating bill could still be astronomical. You can request heating bills for a home you’re considering making an offer on, which can be worth it when looking at an older home.
Should you Move to Nova Scotia?
I hope I haven’t frightened you off the idea of moving to Nova Scotia entirely–our move here has been incredibly rewarding, and the majority of the clients I’ve helped purchase homes for from out of province are also very happy they moved here. A lot of them moved for the slower pace of life, and it’s difficult to put a price on that. It’s important that the REALTOR® you work with has a solid understanding of the area you’re thinking of buying in, and can give you advice on how to make your move painlessly. Don’t hesitate to reach out to me to discuss why you’re considering moving here and how I can help, or download my free Guide to Buying a Home in Nova Scotia for Out of Province Buyers.
