Nova Scotia Provincial Budget Tax Updates 2024-2025

March 15, 2024
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On February 29, 2024, Nova-Scotia’s government has presented its 2024-2025 budget “Building Nova Scotia Faster”. This comprehensive summary highlights the key changes that will influence the Nova Scotia’s tax environment in the coming years.

Personal Income Tax Measures:

The income tax rates for the 2024 taxation year, based on your taxable income, are as follow:

Taxable incomeRate
$29,590 or less8.79 %
More than $29,590 but not more than $59,18014.95 %
More than $59,180 but not more than $93,00016.67 %
More than $93,000 but not more than $150,00017.50 %
More than $150,00021.00 %

The current personal combined income tax rates for top marginal tax rate in 2024 are outlined below:

Taxable income above $246,752Rate
Interest/regular income54.00%
Capital gains27.00%
Eligible dividends41.58%
Non‑eligible dividends48.27%


Personal Income Tax Indexation

Starting from the tax year 2025 onwards, the province will implement indexation within the provincial personal income tax structure. Modifications to tax brackets and various non-refundable tax credits will come into effect as of January 1, 2025.

Taxable income brackets will undergo yearly adjustments. In addition, specific non-refundable tax credits will be subject to indexation, including the basic personal amount, spouse or common-law partner amount, amount for an eligible dependent, age amount, and the amount for infirm dependents aged 18 or older.

Corporate Income Tax Measures

There are no proposed changes to corporate income tax rates or the $500,000 small-business limit for 2024.

The corporate income tax rates for Nova Scotia in 2024 are as follows:

Provincial tax rateFederal and provincial combined tax rate
Small-business tax rate2.50%11.50%
Manufacturing and processing tax rate14.00%29.00%
General corporate tax rate14.00%29.00%

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