Home -> Atlantic Provinces -> Nova Scotia -> Nova Scotia Personal Tax Credits

The Nova Scotia 2017 Budget announced that the Basic Personal Amount, Spousal Amount, and Eligible Dependant Amount would be increased by $3,000 from $8,481 to $11,481 for the 2018 and subsequent taxation years, for all tax filers who have taxable income of less than $25,000.

The usual tax credits will be calculated, and then a supplement of $3,000 basic personal amount would be allowed for tax filers with taxable income of up to $25,000. If a tax filer is able to claim the usual spousal or eligible dependant amount, then an additional amount of $3,000 would be allowed for tax filers with taxable income of up to $25,000, but the net income of the spouse or eligible dependant reduces the additional $3,000.

For individuals with taxable income of greater than $25,000, the $3,000 is reduced by 6% of the amount by which the individual's taxable income exceeds $25,000. This results in the additional $3,000 being eliminated at taxable income of $75,000. The spousal/eligible dependant amount supplement is reduced by the net income of the spouse/eligible dependant, so if the spouse/eligible dependant has $3,000 or more of net income, the supplement is eliminated.

The Nova Scotia tables of marginal tax rates have been revised to reflect the effect of the $3,000 additional basic personal amount. Because this amount is reduced as taxable income increases, it increases the marginal tax rate for taxable incomes between $25,000 and $75,000.

Examples of spouse/eligible dependant amount supplement:

1. When the taxpayer has $45,000 of taxable income, and spouse or eligible dependant has $1,000 of net income
2. When the taxpayer has $25,000 or less of taxable income, and spouse or eligible dependant has $1,000 of net income:

Spouse / Common-law partner / Eligible dependant amount supplement
Base amount	$75,000	$75,000
Subtract your taxable income for the year (or $25,000, whichever is more)	-45,000	-25,000
Net amount (zero if negative)	$30,000	$50,000
Applicable rate	6%	6%
Subtotal	$1,800	$3,000
Less spouse/eligible dependant net income (line 236)	-1,000	-1,000
Supplement amount (maximum $3,000, zero if negative)	$800	$2,000

NS Age Amount

NS Taxation Act 2000, s. 10(2), 10A(7), 10G

The Nova Scotia 2017 Budget announced that the age amount tax credit would be increased by $1,465 for all eligible tax filers who have taxable income of $25,000 or less. The supplement of $1,465 will be reduced at a rate of 2.93% of the amount by which the individual's taxable income exceeds $25,000. This results in the additional $1,465 being eliminated at taxable income of $75,000.

Examples of age amount supplement:

1. When the taxpayer has $45,000 of taxable income
2. When the taxpayer has $25,000 or less of taxable income:

Age amount supplement
Base amount	$75,000	$75,000
Subtract your taxable income for the year (or $25,000, whichever is more)	-45,000	-25,000
Net amount (zero if negative)	$30,000	$50,000
Applicable rate	2.93%	2.93%
Supplement amount (maximum $1,465, zero if negative)	$879	$1,465

NS Low Income Tax Reduction

NS Taxation Act 2000, s. 35

	available to low income individuals and families
	amount received depends on family net income
	can be claimed by either spouse
	cannot exceed NS tax payable (not refundable)

Bill 27 Financial Measures (2011) Act, introduced in April 2011, provides a low income tax deduction to a widowed person for that person's spouse if the spouse died during the taxation year.

See Canada Revenue Agency ( CRA) form NS428 from the Nova Scotia General Income Tax and Benefit Package for detailed calculation.

NS Age Tax Credit for Low Income Seniors

NS Taxation Act 2000, s. 36B

This non-refundable tax credit, new for the 2014 taxation year as announced in the NS 2014 Budget, is a deduction of $1,000

	are age 65 or older at December 31st of the taxation year
	are resident in Nova Scotia on December 31st of the taxation year
	had a taxable income or taxable income earned in Canada of less than $24,000 for the taxation year.

NS Healthy Living Tax Incentive - Eliminated

As per the NS 2015 Budget, this tax credit is eliminated effective January 1, 2015. The last taxation year for which it could be claimed was 2014.

Also called the Sport and Recreational Expenses for Children tax credit, this was a non-refundable tax credit, claimed at the lowest Nova Scotia tax rate (8.79%). A maximum amount of $500 per child could be claimed, for the registration of an eligible child in a designated sport or recreational activity, which would equal a maximum tax credit of $43.95 ($500 x 8.79%) per child. This tax credit was available since 2005. Either spouse could claim the tax credit, or it could be split between both spouses.

An eligible child is under 18 years of age at the end of the year, and

	your child by blood, marriage, common-law partnership, or adoption;
	dependent on you for support and under your custody and control, or
	a spouse or common-law partner of your child

There is no additional tax credit for a child with a disability.

Only receipts from groups which have registered with the Department of Health Promotion and Protection were eligible for the tax credit.

The Nova Scotia 2008 budget announced that starting in 2009, this credit would be extended to all Nova Scotians. However, the 2009 budget announced that this extension would be deferred indefinitely.

Nova Scotia Refundable Personal Tax Credits

Nova Scotia Workers - MOST Tax Refund

The More Opportunity for Skilled Trades and Occupations (MOST) Tax Refund program is effective for the 2022 and later taxation years. The MOST program allows employed or self-employed workers under 30 in eligible trades and occupations to receive a refund of the Nova Scotia income tax on the first $50,000 of income earned. To qualify, workers must apply for the tax refund online, after filing their tax return. This refund is not part of the tax return. The due date for the application related to the 2023 taxation year is June 30, 2025.

For complete information, including the link to apply for the refund, see More Opportunity for Skilled Trades and Occupations Tax Refund on the Nova Scotia website.

NS Children's Sports and Arts Tax Credit

NS Income Tax Act, s. 38C

First available for the 2022 taxation year, this refundable tax credit is for eligible costs for programs of artistic, cultural, recreational or developmental activity or physical activity. The credit is the lowest tax rate of 8.79% x the lesser of $500 or total eligible costs for each child age 18 or younger at the end of the taxation year, for a maximum credit of $43.95 per child.

See Children's Sports and Arts Tax Credit on the Nova Scotia website for more information on eligible expenses. As of January 30, 2024 the Nova Scotia information indicates that the credit is for children 19 and younger at the end of the tax year - this is not correct. See their Income Tax Act for the correct age.

NS Volunteer Fire Fighter and Ground Search and Rescue Tax Credit

NS Income Tax Act, s. 38A, Volunteer Fire Fighter Tax Credit Regulations

Volunteer firefighters and ground search and rescue workers can claim a tax credit by entering the refundable tax amount of $500 (for 2013 and later years) on line 6228 of form NS428 from the Nova Scotia General Income Tax and Benefit Package, and is entered on line 479 of the federal tax return. All of the following conditions must be met:

	resident of Nova Scotia on December 31 of the tax year
	volunteer firefighter or ground search and rescue worker for a minimum of six months during the tax year
	did not receive salary, wages or compensation, other than reasonable reimbursement or allowance for expenses, and
	identified as a volunteer firefighter on the report filed by your fire chief, or identified as an eligible ground search and rescue worker on the report filed by your ground search and rescue president. Reports are filed with the Department of Finance and Treasury Board by January 31st of each year for the previous taxation year.

To be eligible, firefighters must participate in no less than 20 per cent of emergency calls responded to by the volunteer fire department; training sessions conducted by the volunteer fire department; and meetings held by the volunteer fire department.

For more information see the Volunteer Firefighters and Ground Search & Rescue Tax Credit information on the Nova Scotia Finance and Treasury Board website. The forms to be filed with the Department of Finance and Treasury Board can be found on this website as well.

NS Affordable Living Tax Credit (NSALTC) - paid with the GST credit

NS Affordable Living Tax Credit Regulation

started on July 1, 2010

maximum annual credit since July 1, 2012:

	$255 for an individual or couple, and
	$60 for each child under 19 years of age

credit is reduced by 5% of adjusted family net income (line 23600 minus Universal child care benefit (UCCB) and Registered Disability Savings Plan (RDSP) income plus UCCB and RDSP repayment) over $30,000

paid in combination with the federal GST credit

See Affordable Living Tax Credit and Poverty Reduction Tax Credit on the Nova Scotia website.

See Provincial tax credits paid with the GST/HST credit

See Nova Scotia affordable living tax credit on the Canada Revenue Agency website.

NS Poverty Reduction Credit (PRC) - paid with the GST credit

started on July 1, 2010

tax-free quarterly payments

based on prior year tax return

eligible if

	annual adjusted income was below $16,000 in the previous tax year
	you are an individual or couple that received Income Assistance from January to December in the previous year.
	you filed your tax return for the previous tax year
	you had no children in the previous tax year

in 2022, eligible individuals will receive $125 in July, October, January and April ($500 for the year)

See The Poverty Reduction Credit on the Nova Scotia website.

NS Tax Reduction for Low-Income Seniors Receiving GIS

Tax Refund for Seniors Receiving the Guaranteed Income Supplement Regulations

Seniors who receive the Guaranteed Income Supplement (GIS) will receive a refund of Nova Scotia provincial income tax paid, unless the amount paid was less than $50.

Regulations were developed that allow the Province of Nova Scotia to implement a credit for seniors who are GIS recipients and Nova Scotia residents, and have provincial taxes owing for the 2010 and later taxation years.

Canada Revenue Agency (CRA) is not administering this credit, so NS GIS recipients will file their tax returns as usual, and make payments for any taxes owing. It is important for tax returns to be filed so that the refund can be provided by the NS government.

The refund is available to seniors who reported GIS income on line 146 of their tax return, and have Nova Scotia provincial income tax owing on line 428 of their tax return. Refunds will not be done for amounts less than $50. The maximum refund amount is $10,000.

In July of each year, the Province of Nova Scotia will receive a file from CRA advising them of GIS recipients and the provincial income tax they paid. The Province will then issue refund cheques to GIS recipients. The cheques for 2012 refunds were mailed at the end of July 2013.

See the NS Finance information Seniors Provincial Income Tax Refund FAQ.

Nova Scotia First-Time Home Buyers Rebate

A rebate of 18.75%, to a maximum of $3,000 (effective April 1, 2012), of the provincial portion of the HST is provided on new homes purchased by first-time home buyers. The amount of the rebate prior to April 1, 2012 is a maximum of $1,500. The rebate will increase where the Agreement of Purchase and Sale is entered into after March 31, 2012, or when the building permit is issued for an owner-built home after that date.

See Access Nova Scotia First-Time Home Buyers Rebate for application details.

Discontinued Nova Scotia Tax Credits

Graduate Retention Rebate - discontinued

The Nova Scotia 2014 budget announced that the Graduate Retention Rebate would be eliminated effective January 1, 2014. Graduates were still able to receive the credit for the 2013 tax year.

This program was available to students who graduated in 2009 and later years, and replaced the Graduate Tax Credit.

The graduate retention rebate is claimed as part of the annual tax return.

Amount of the rebate:

Graduates with a university degree

tax reduction of up to $15,000 over 6 years, to a maximum of $2,500 per year

Graduates with a college diploma or certificate

tax reduction of up to $7,500 over 6 years, to a maximum of $1,250 per year.

Graduate Tax Credit - discontinued

This tax credit was replaced in 2009 by the Graduate Retention Rebate (see above).

Revised: September 20, 2024