2025 Nova Scotia Budget Highlights
On February 18, 2025, Nova Scotia’s Minister of Finance and Treasury Board, John Lohr, tabled the province’s 2025-26 budget. We have highlighted selected tax measures from the budget that may affect individuals and small businesses in Nova Scotia.
INDIVIDUALS
Personal Tax Rates
No changes were proposed to the provincial income tax rates.
Beginning January 1, 2025, Nova Scotia has started to index its provincial tax brackets.
| Taxable Other/Interest/Salary/Pension Income | 2025 |
|---|---|
| $0 to $30,507 | 8.79% |
| $30,508 to $61,015 | 14.95% |
| $61,016 to $95,883 | 16.67% |
| $95,884 to $154,650 | 17.50% |
| Over $154,650 | 21.00% |
Top Combined Federal and Nova Scotia Marginal Tax Rates - 2025
| Other/Interest/ Salary/Pension | Capital Gains | Eligible Canadian Dividends | Non-eligible Canadian Dividends |
|---|---|---|---|
| 54.00% | 27.00% | 41.58% | 48.28% |
Top rates apply to taxable income over $253,414 based on known federal and provincial rates as of February 18, 2025.
Personal Income Tax Measures
Beginning January 1, 2025:
- The provincial basic personal amount will increase from $8,744 to $11,744. Previously, the additional $3,000 amount was available only to individuals with taxable income of $25,000 or less.
- The provincial age amount will increase to $5,734 from $4,269 for eligible individuals.
Other Tax Measures
Starting April 1, 2025, the provincial portion of the HST will be reduced from 10% to 9%.
Cost of Living Assistance Measures
The province’s minimum wage will be Increased to $15.70 on April 1, 2025 and to $16.50 on October 1, 2025.
BUSINESSES
Corporate Tax Rates
The budget did not propose any changes to the provincial general corporate income tax rate; however, the small business tax rate will be reduced from 2.5% to 1.5% as of April 1, 2025. As well, the provincial small business income threshold will also be increased to $700,000 from $500,000.
Nova Scotia Corporate Tax Rates
| Income Type | Provincial | Federal | Combined Rates Calendar 2025 |
|---|---|---|---|
| General corporate | 14.00% | 15.00% | 29.00% |
| Small business – to $500,000 | 2.50% / 1.50%1 | 9.00% | 11.50% / 10.50%1 |
| Small business –$500,000 to $700,000 | 14.00% / 1.50%2 | 15.00% | 29.00% / 16.50%2 |
| CCPC* investment | 14.00% | 38.67% | 52.67% |
| Non-CCPC investment | 14.00% | 15.00% | 29.00% |
Based on known federal and provincial rates as at February 18, 2025
1
Small business tax rate to decrease to 1.5% as of April 1, 2025
2
Small business income threshold will be increased from $500,000 to $700,000
as of April 1, 2025
*Canadian Controlled Private Corporation
Refer to the 2025 Nova Scotia Budget for further details.
This has been prepared by the Total Wealth Solutions Group of Raymond James Ltd., (RJL). Statistics and factual data and other information are from sources RJL believes to be reliable, but their accuracy cannot be guaranteed. It is for information purposes only and is not to be construed as an offer or solicitation for the sale or purchase of securities nor is it meant to replace legal, accounting, taxation or other professional advice. We are not tax advisors, and we recommend that clients seek independent advice from a professional advisor on tax-related matters. The information is furnished on the basis and understanding that RJL is to be under no liability whatsoever in respect thereof. This is intended for distribution only in those jurisdictions where RJL and the author are registered. Securities-related products and services are offered through Raymond James Ltd., Member - Canadian Investor Protection Fund. Insurance products and services are offered through Raymond James Financial Planning Ltd., which is not a Member - Canadian Investor Protection Fund.
