Nova Scotia Tax System
Nova Scotia uses a progressive income tax system, meaning higher portions of your taxable income are taxed at progressively higher rates. Provincial income tax is calculated separately from federal income tax, and the two amounts together determine your overall income tax liability.
Nova Scotia historically did not index its personal income tax brackets to inflation. However, beginning with the 2025 tax year, the province started indexing its tax brackets and certain non-refundable tax credits annually. This helps reduce "bracket creep," where inflation-driven increases in income could otherwise push taxpayers into higher tax brackets even when their purchasing power has not increased.
Nova Scotia residents may also qualify for a range of provincial tax credits and benefits. These include the Basic Personal Amount and credits related to age, disability, eligible dependants, medical expenses, and charitable donations. Lower-income residents may also qualify for provincial income-tested benefits, including the Nova Scotia Affordable Living Tax Credit and Poverty Reduction Credit.
Nova Scotia income tax is administered through the federal tax system. Residents generally file a single income tax return with the Canada Revenue Agency, which calculates both federal and provincial income taxes. Employees typically have income tax deducted from each paycheque, with any remaining balance owing or refund determined when they file their annual return.
Nova Scotia also levies Harmonized Sales Tax (HST) on most taxable goods and services. The province reduced its HST rate from 15% to 14% on April 1, 2025. HST is separate from personal income tax and combines federal and provincial sales taxes into a single tax.
Nova Scotia Tax Brackets
| Tax rate | 2024 Taxable Income | 2025 Taxable Income | 2026 Taxable Income |
|---|---|---|---|
| 8.79% | $29,590 or less | $30,507 or less | $30,995 or less |
| 14.95% | over $29,590 up to $59,180 | over $30,507 up to $61,015 | over $30,995 up to $61,991 |
| 16.67% | over $59,180 up to $93,000 | over $61,015 up to $95,883 | over $61,991 up to $97,417 |
| 17.5% | over $93,000 up to $150,000 | over $95,883 up to $154,650 | over $97,417 up to $157,124 |
| 21% | over $150,000 | over $154,650 | over $157,124 |
Nova Scotia 2026 Income Tax Examples
| Annual Salary | Federal Tax | Nova Scotia Tax | Payroll Deductions | Total Tax and Payroll Deductions | After-Tax Income |
|---|---|---|---|---|---|
| $50,000 | $3,985 | $4,173 | $3,582 | $11,740 | $38,260 |
| $100,000 | $13,302 | $12,061 | $5,770 | $31,133 | $68,867 |
| $150,000 | $25,302 | $20,811 | $5,770 | $51,883 | $98,117 |
| $200,000 | $38,876 | $31,022 | $5,770 | $75,668 | $124,332 |
These examples show estimated income tax and payroll deductions for single Nova Scotia residents under 65 earning employment income only, with no additional deductions or credits beyond those automatically included in the calculator.
Nova Scotia Basic Personal Amount
Before 2025, Nova Scotia's Basic Personal Amount depended on income. The maximum amount was available to residents with income of $25,000 or less and was gradually reduced for incomes between $25,000 and $75,000. Residents with income of $75,000 or more received the lower base amount.
Starting in 2025, Nova Scotia eliminated this income-based phase-out. All residents can now claim the same provincial Basic Personal Amount, regardless of income. The amount is also indexed to inflation each year.
| 2024 Taxable Income | 2024 Basic Personal Amount | 2025 Basic Personal Amount | 2026 Basic Personal Amount |
|---|---|---|---|
| $25,000 or less | $11,481 | $11,744 | $11,932 |
| $25,000 to $75,000 | $11,481 − ((Annual Income − $25,000) × 6%) | $11,744 | $11,932 |
| More than $75,000 | $8,481 | $11,744 | $11,932 |
Nova Scotia Age Amount
Nova Scotia residents who are age 65 or older at the end of the tax year can claim the provincial Age Amount. The amount is reduced by 15% of net income above $30,828. This income threshold remains in place.
Before 2025, Nova Scotia also applied a separate income-tested enhancement to the Age Amount, which was reduced when taxable income exceeded $25,000. This additional phase-out was eliminated beginning in 2025. The regular Age Amount continues to be reduced by 15% of net income over the threshold of $30,828, while the maximum amount is indexed annually to inflation.
| Tax Year | Maximum Age Amount | Income Reduction |
|---|---|---|
| 2024 | $5,606 ($4,141 base amount + $1,465 enhancement) | Regular amount reduced by 15% of net income over $30,828; the additional enhancement was also reduced based on taxable income above $25,000 |
| 2025 | $5,734 | 15% of net income over $30,828 |
| 2026 | $5,826 | 15% of net income over $30,828 |
In addition to the Age Amount above, lower-income seniors may qualify for Nova Scotia's $1,000 Age Tax Credit if their taxable income is below $24,000.
Nova Scotia Volunteer Firefighters and Ground Search and Rescue Tax Credit
Nova Scotia offers a $500 refundable tax credit to eligible volunteer firefighters and ground search and rescue workers. To qualify, you must generally have served for at least six months during the tax year, received no compensation other than reasonable expense reimbursements or allowances, and meet the applicable participation and reporting requirements.
Nova Scotia Low Income Tax Reduction
The Nova Scotia Low Income Tax Reduction is a non-refundable tax reduction for lower-income residents. The basic reduction is $300, with an additional $300 for a spouse, common-law partner, or eligible dependant, up to $600 before amounts for dependent children are added. You can also receive $165 for each eligible dependent child who is not being claimed for the $300 eligible-dependant reduction.
The reduction is income-tested. Once adjusted family income exceeds $15,000, the available reduction decreases by 5% of the amount above $15,000. As a result, the income at which the reduction is fully eliminated depends on your family circumstances and the number of eligible children.
Nova Scotia Refundable Tax Credits and Benefits
The Nova Scotia Affordable Living Tax Credit (NSALTC) is a tax-free benefit for low- and modest-income individuals and families. For July 2026 to June 2027, it provides up to $255 per year for an individual or couple, plus $60 for each child. The benefit is reduced by 5% of adjusted family net income over $30,000. NSALTC payments are combined with the quarterly Canada Groceries and Essentials Benefit (CGEB).
The Nova Scotia Child Benefit (NSCB) is a tax-free monthly benefit for low- and modest-income families with children under 18. For July 2026 to June 2027, families with adjusted family net income of $26,000 or less can receive $127.08 per month for each child, while families with income between $26,000 and $34,000 can receive a partial benefit. The NSCB is combined with the Canada Child Benefit (CCB) into a single monthly payment.
Other Tax Credits in Nova Scotia
Nova Scotia residents may also qualify for other provincial non-refundable tax credits, including:
- Caregiver Amount
- Tuition and Education Amounts
- Pension Income Amount
- Disability Amount
The CRA administers these and other Nova Scotia personal income tax credits. Eligibility and the amount you can claim depend on your individual circumstances.