Nova Scotia employs a progressive income tax system with five brackets, making it one of Canada's highest provincial tax jurisdictions. For 2024, tax rates start at 8.79% for income up to $29,590, increasing to 14.95% for income between $29,591 and $59,180, then 16.67% for income between $59,181 and $93,000, followed by 17.5% for income between $93,001 and $150,000, and finally 21% for income exceeding $150,000. NS was an outlier in the sense that, unlike most other provinces, it did not index its tax brackets to inflation. However, the province started indexing its tax brackets in the tax year 2025 when the indexation factor is 1.031 (3.1% increase). These provincial rates are applied in addition to federal income taxes, creating a combined tax burden that residents must pay.
The province offers several tax credits to offset this relatively high tax rate structure. These include the basic personal amount ($8,481 in 2024), which shields initial income from taxation, as well as credits for age, disability, education, medical expenses, and charitable donations. Nova Scotia also provides specific provincial credits such as the Affordable Living Tax Credit and the Poverty Reduction Credit aimed at lower-income residents. The province occasionally offers targeted tax incentives for specific sectors, particularly film and digital media, to encourage economic development.
Nova Scotia's tax filing system is integrated with the federal system, meaning residents file a single tax return that calculates both federal and provincial obligations. Tax returns must be filed by April 30th each year, with self-employed individuals having until June 15th to file (though any taxes owed must still be paid by April 30th to avoid interest charges). Most employed Nova Scotians have taxes withheld from their paychecks throughout the year based on estimated annual income, with adjustments made during tax filing season.
Unlike some provinces, Nova Scotia has limited ability to generate revenue from natural resources, which partially explains its higher income tax rates. The province must balance its need for tax revenue to fund healthcare, education, and infrastructure against concerns about tax competitiveness with neighboring provinces and states. This balancing act has led to occasional tax reform discussions, though significant changes to the province's tax structure have been limited in recent years. The province also imposes a harmonized sales tax (HST) of 15%, which is a combination of the 5% federal GST and a 10% provincial portion, creating an additional revenue stream beyond income taxes.
Nova Scotia Tax Brackets
| Tax rate | 2025 Taxable income | 2024 Taxable Income |
|---|---|---|
| 8.79% | $30,507 or less | $29,590 or less |
| 14.95% | over $30,507 up to $61,015 | over $29,590 up to $59,180 |
| 16.67% | over $61,015 up to $95,883 | over $59,180 up to $93,000 |
| 17.5% | over $95,883 up to $154,650 | over $93,000 up to $150,000 |
| 21% | over $154,650 | over $150,000 |
In past years, the personal amount consisted of $8,481 plus an additional $3,000, which was phasing out for incomes above $25,000. In 2025 a personal amount of $11,481 will apply to all residents.
Nova Scotia Personal Amounts
| Annual Income | Basic Personal Amount 2024 | Basic Personal Amount 2024 |
|---|---|---|
| Less than $25,000 | $11,481 | $11,481 |
| $25,000 to $75,000 | $11,481 - ((Annual Income - $25,000) x 6%) | $11,481 |
| More than $75,000 | $8,481 | $11,481 |
Nova Scotia Age Amount
If you are over the age of 65 by the end of 2024, you may claim a tax credit of $4,141 if your income is less than $30,828. You may claim a partial benefit if your income is more than $30,828 but less than $58,435. Budget 2025 increased the age amount to $5,734 and removed this tax credit's phase-out threshold.
Nova Scotia Age Amount
| Income | 2024 Tax Credit | 2025 Tax Credit |
|---|---|---|
| Less than $30,828 | $4,141 | $5,734 |
| More than $30,828 | $4,141 - 15% of income over $30,828 | $5,734 |
Nova Scotia Age Supplement
If you are over the age of 65, you may claim a tax credit of $1,465 if your income is less than $25,000. You can also claim the age supplement tax credit at a partial rate if your income is between $25,000 and $75,000.
Nova Scotia Age Supplement
| Income | Tax Credit |
|---|---|
| Less than $25,000 | $1,465 |
| Between $25,000 and $75,000 | 2.93% x ( $75,000 - Income) |
Nova Scotia Volunteer Firefighters and Ground Search and Rescue Tax Credit
You may claim this tax credit if you were a volunteer firefighter or search and rescue volunteer for at least six months. This tax credit provides a refundable tax credit of $500.
Nova Scotia Low Income Tax Reduction
The Nova Scotia low-income tax reduction is a non-refundable tax credit that can reduce the tax payable by an individual or family. The credit can reduce an individual’s or a family’s taxes by $300 for the tax filer, plus $300 for a spouse or an eligible dependent, up to a maximum of $600. Additionally, you can claim $165 for every dependent child.
Nova Scotia Refundable Tax Credits
The Nova Scotia Affordable Living Tax Credit (NSALTC) program provides up to $255 a year, plus $60 for each child, to households with an income less than $30,000. If your household income is over $30,000, the tax credit is reduced by 5% for your income over $30,000. This amount is combined with the quarterly payments of the federal GST/HST credit.
The Nova Scotia Child Benefit (NSCB) is paid monthly if your family income is less than $26,000 and is combined with the Canada Child Benefits (CCB) into the same monthly payment. You can receive a monthly benefit of $127.08 for every child (under 18 years of age) in your care. You may receive a partial NSCB benefit if your income is between $26,000 and $34,000.
Other Tax Credits in Nova Scotia
Apart from the credits and benefits listed above, there are some other tax credits available in Nova Scotia, such as:
- Caregiver Amount
- Tuition and Education Amounts
- Pension Income Amount
- Disability Amount
You may also be eligible for other tax credits besides those listed above. You can visit the Government of Nova Scotia’s website for more information.