Small business tax rate income threshold increased from $500,000 to
$700,000
HST to be reduced by 1% to 14% starting April 1, 2025
The supplements to the basic personal, spousal, eligible dependant and age
amounts are eliminated, and the amounts are increased so that the previous
supplement is now included in the amounts.
2025 basic personal amount (BPA) increased from $8,744 to $11,744
Spouse/eligible dependant amounts increased to $11,744
Age amount increased to $5,734, but still reduced at the rate of $0.15 per
$1 over the income threshold
As provided in 2024 budget, tax brackets indexed starting January 1, 2025
Starting January 1, 2025, Nova Scotia will begin indexing, using the Nova
Scotia inflation rate (12 months ending August - federal and all
other provinces and territories use 12 months ending September), the personal income tax brackets and the following non-refundable tax credits:
basic personal amount of $8,481
spousal amount of $9,329
eligible dependant amount of $9,329
infirm dependant amount of $8,481 and threshold of $5,683
age amount of $4,141, but not the threshold of $30,828
Innovation tax credit end date for both individuals and corporations
extended from March 1, 2024 to March 2, 2029
Venture Capital tax credit end date extended from April 1, 2024 to March
31, 2029
Digital Medial and Digital Animation tax credits end dates extended 5
years to 2031.
No personal or corporate income tax changes other than MOST expansion
More Opportunity for Skilled Trades (MOST) expanded for 2023 to include
registered nurses, licensed practical nurses, and nurse practitioners who
work for publicly funded employers.
Starting in 2022, will return personal income tax paid on the first
$50,000 of earnings for under the age of 30, who are employed and
registered in selected skilled trades and occupations in industries
where there are labour shortages.
To start, selected occupations in eligible sectors will include
manufacturing, computer and IT, transportation, film, video, and service
sectors.
The corporate
income tax rate is to be reduced from 16% to 14%, with the small business
tax rate reduced from 3% to 2.5%. Both rate changes are effective April 1,
2020.
A tax on vaping products will be introduced
starting September 15, 2020.
Tax on cigarettes, cigars and other forms
of tobacco are increased effective February 26, 2020.
The digital media and digital animation tax
credits will be extended to December 31, 2025.
Nova Scotia is forecasting a surplus of $55 million for the
2020-21 fiscal year.
New Venture Capital Personal and Corporate
Tax Credit will be introduced effective April 1, 2019, available for both
individual and corporate investors, with a tax credit rate of 15%.
The Equity Tax Credit will be phased out as
of December 31, 2019. Applications will be accepted until that date.
For more information see:
Key Tax Measures on page 34 of the Budget
2019-20 document (page 38 of the pdf) on the Nova Scotia website.
See Nova
Scotia Budget 2018-19 for full details. All budget measures are
subject to legislative approval.
Personal Income Tax
The $10,000 limit on medical
expenses for other financially dependent relatives is being removed from the
Income Tax Act. It has not actually been applied since 2011, when the
Federal limit was removed.
This is a separate tax credit from the medical expense tax credit for spouses
and children.
A new Innovation Equity Tax Credit will be
introduced, beginning January 1, 2019. The existing Equity
Tax Credit will be phased out over time.
Cannabis Tax: The federal government will impose a
federal excise duty of $0.25 per gram of flowering material in a cannabis
product and will collect a $0.75 per gram additional duty on behalf of the
province.
For more information see Key Tax Measures on page 39 of the Budget
2018-19 document on the Nova Scotia website.
Tax Highlights, effective January 1, 2015 unless otherwise
indicated:
Dividend tax Credit for non-eligible dividends reduced
from 5.87% to 3.5% of the taxable (grossed-up) dividend. The
legislation actually changed the rate to 22.94% of the federal gross-up.
Healthy Living Tax credit eliminated, because it is not
helping low-income Nova Scotians as intended.
Tobacco tax increase $0.02 per unit effective April 10
2015.
Film Industry Tax Credit to be maintained, but changed
from fully refundable to 25% refundable, effective July 1, 2015.
New $6 million program fund to support film, animation,
music/sound recording and publishing - will begin in 2016.
Effective January 1, 2014, the Graduate
Retention Rebate will be eliminated. Graduates are still able
to receive the rebate for the 2013 tax year.
The previously announced HST
rate reduction will not happen - the rate will stay at 15%.
Government will consider reducing the HST rate when sustainable fiscal
balances are achieved.
On January 1, 2015 the efficiency fee will come off all
power bills.
Eligibility for the Child Tax Benefit will be expanded
to 1,300 more children from low-income families.
The previously announced new provincial $1,000 age tax credit
(non-refundable) starting in 2014 will still be available, for seniors
with taxable income under $24,000.
Small business corporate
tax rate reduced to 3% effective January 1, 2014, and the small
business limit threshold will be reduced from $400,000 to $350,000
As previously announced, HST
rate will be reduced to 14% in 2014 and 13% in 2015 -
Not being done
New provincial $1,000 age amount tax credit
(non-refundable) starting in 2014
Increase of $200 in the maximum property tax rebate for low-income seniors, bringing the total rebate up to $800
Increase in tobacco tax of 2 cents per cigarette or gram
of fine-cut tobacco, effective April 5, 2013.