March 5, 2024
Tax Highlights from the 2024 Nova Scotia Budget
Minister of Finance Allan MacMaster tabled the 2024/25 Nova Scotia provincial budget on February 29, 2024.
The budget projects a deficit of $467.4 million for the upcoming 2024/25 fiscal year followed by further deficits in the next three fiscal years. The forecast surplus for the almost completed 2023/24 fiscal year now stands at $40.3 million, compared to a projected deficit of $278.9 million.
On the income tax side, there were no increases or decreases to personal or corporate income tax rates for 2024. However, the budget introduces the indexing of the personal income tax system and an HST rebate for purpose-built rental housing.
The following pages are a summary of the changes announced in the budget. Please note that these changes are proposals until they are passed into law by the provincial government.
Personal Tax Matters
Personal income tax rates and tax brackets
There were no proposed changes to personal income tax rates. Nova Scotia does not index its tax brackets to reflect the impact of inflation. The table below shows the Nova Scotia tax rates and brackets for 2024.
| TAXABLE INCOME RANGE | 2024 TAX RATES |
|---|---|
| First $29,590 | 8.79% |
| Over $29,590 to $59,180 | 14.95% |
| Over $59,180 to $93,000 | 16.67% |
| Over $93,000 to $150,000 | 17.50% |
| Over $150,000 | 21.00% |
The table below shows the 2024 combined federal and provincial highest marginal tax rates for various types of income.
| INCOME TYPE | 2024 COMBINED TAX RATES |
|---|---|
| Regular income | 54.00% |
| Capital gains | 27.00% |
| Eligible dividends | 41.58% |
| Non-eligible dividends | 48.28% |
Personal income tax indexation
Beginning January 1, 2025, the province will introduce indexing to the provincial personal income tax system. Personal income tax brackets, the basic personal amount, spouse or common-law partner amount, amount for an eligible dependant, age amount, and the amount for infirm dependants aged 18 or older will be indexed to Nova Scotia’s inflation rate.
Corporate Tax Matters
Corporate income tax rates
There were no changes to corporate income tax rates announced in the budget. The table below shows the Nova Scotia tax rates and small business limit for 2024.
| CATEGORY | 2024 TAX RATES |
|---|---|
| General rate | 14.0% |
| Manufacturing and processing rate | 14.0% |
| Investment income rate | 14.0% |
| Small business rate | 2.5% |
| Small business limit | $500,000 |
The table below shows the 2024 combined federal and provincial corporate income tax rates for various types of income earned by a Canadian Controlled Private Corporation (CCPC).
| INCOME TYPE | 2024 COMBINED TAX RATES |
|---|---|
| Small business income | 11.50% |
| Active income over $500,000 | 29.00% |
| Manufacturing and processing income | 29.00% |
| Investment income | 52.67% |
Other Initiatives
Purpose-built rental housing rebate
The province introduced this rebate program in conjunction with the federal government. The program will rebate the provincial portion of the HST applicable to purpose-built rental housing projects which commenced construction on or after September 14th, 2023, and on or before December 31, 2030, which are completed construction by December 31, 2035.
We Can Help
Your financial advisor can help you assess the impact of these proposals on your personal finances or business affairs and show you ways to take advantage of their benefits or ease their impact.
There were no proposed changes to personal income tax rates. Nova Scotia does not index its tax brackets to reflect the impact of inflation. The table below shows the Nova Scotia tax rates and brackets for 2024.
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