Tax Flash Bulletin
2023 Nova Scotia Budget Highlights
On March 23, 2023, Nova Scotia’s Minister of Finance and Treasury Board, Allan MacMaster, tabled the province’s 2023-24 budget. We have highlighted selected measures from the budget that affect individuals and small businesses in Nova Scotia.
INDIVIDUALS
Personal Tax Rates
The budget did not contain any changes to provincial personal income tax rates or the provincial tax brackets. The 2023 brackets remain the same as 2022 because Nova Scotia does not index its provincial tax brackets to inflation.
Nova Scotia Tax Brackets and Tax Rates
| Taxable Income | 2022 | 2023 |
|---|---|---|
| $0 to $29,590 | 8.79% | 8.79% |
| $29,590 to $59,180 | 14.95% | 14.95% |
| $59,180 to $93,000 | 16.67% | 16.67% |
| $93,000 to $150,000 | 17.50% | 17.50% |
| Over $150,000 | 21.00% | 21.00% |
Top Combined Nova Scotia and Federal Rates
| Income Type | 2022 | 2023 |
|---|---|---|
| Salary, interest, pension, foreign | 54.00% | 54.00% |
| Eligible dividends | 41.58% | 41.58% |
| Non-eligible dividends | 48.28% | 48.28% |
| Capital gains | 27.00% | 27.00% |
Top rates apply to taxable income over $235,675 ($221,708 for 2022) based on known federal and provincial rates as of March 23, 2023
Social Services and Assistance Measures
- Increase the Nova Scotia Child Benefit by $600, from $925 to $1,525
- Reduce childcare fees so they are lowered to an average of $10 per day in 2026
- The $500 Seniors Care Grant will continue
- No fee increases for the Seniors Pharmacare and Family Pharmacare programs
Expansion of Tax Reductions for Skilled Trade Workers
- In 2022, the province introduced the More Opportunity for Skilled Trades (MOST) program, which provides a refund of provincial personal income tax on the first $50,000 for individuals under age 30 employed and registered in selected skilled trades and occupations.
- The budget proposes to expand the tax savings program to include registered nurses, licensed practical nurses, and nurse practitioners who work for publicly funded employers such as:
- the Health Authorities
- Emergency Medical Care Inc. (LifeFight, telehealth, medical communication centre)
- continuing care
- disability support programs
- the School Health Partnership Program.
Elimination of Non-Resident of Nova Scotia Property Tax
- In last year’s budget, the province proposed a property tax of $2.00 per $100 of assessed value on residential real property owned by a non-resident of Nova Scotia.
- The government decided not to implement the tax, as announced on May 5, 2022.
- The budget does not re-introduce this property tax.
BUSINESSES
Corporate Tax Rates
The budget did not contain any changes to corporate income tax rates or any changes to the $500,000 small business deduction limit.
Nova Scotia Corporate Tax Rates
| Income Type | Provincial | Federal | Combined Rates Calendar 2023 |
|---|---|---|---|
| General corporate income | 14.00% | 15.00% | 29.00% |
| Small business income | 2.50% | 9.00% | 11.50% |
| CCPC* investment income | 14.00% | 38.67% | 52.67% |
| Non-CCPC investment income | 14.00% | 15.00% | 29.00% |
* Canadian-controlled private corporation
Based on known federal and provincial rates as of March 23, 2023
Refer to the 2023 Nova Scotia Budget for further details
This has been prepared by the Professional Wealth Advisory 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.