Nova Scotia’s Minister of Finance and Treasury Board, John Lohr, presented the province’s fiscal budget for 2025-26 on 18 February 2025.
The government’s Capital Plan 2025-26 will invest more than CAD 2.35 billion in healthcare facilities, housing projects and other priorities across the province, helping build and sustain communities for generations to come.
“Moving our province forward requires a new mindset. That vision is captured this year in the largest-ever capital plan that will position us for future growth,” said Minister Lohr. “These investments will support Nova Scotians and unlock opportunities to grow the economy.”
Budget 2025-26 will continue to move Nova Scotia forward. It builds on progress already made and delivers on promises to lower taxes, hire more doctors, increase wages and strengthen our economy.
The key tax measures are as follows:
Corporate income tax rates
The corporate income tax rate will remain unchanged. However, starting 1 April 2025, the small-business tax rate will be reduced from 2.5% to 1.5%, and the small-business tax rate income threshold will be increased from CAD 500,000 to CAD 700,000.
Non-resident deed transfer tax increase
The province’s nonresident deed transfer tax rate will be from 5% to 10%, effective 1 April 2025.
Harmonised sales tax (HST) reduction
Nova Scotia’s harmonised sales tax rate (HST) is currently 15%, including the 5% federal and 10% provincial portions. Effective 1 April 2025, the Province will reduce the provincial portion from 10% to 9%, decreasing the HST rate from 15% to 14%.
Personal income tax rates
Nova Scotia residents with taxable income up to CAD 15,100 in 2025 pay no provincial income tax. This reduction is gradually phased out for incomes between CAD 15,101 and CAD 21,000, adding a 5% provincial tax in this range.
Personal tax credits
Starting in the 2025 tax year, the maximum basic personal amount, spouse/common-law partner amount, and eligible dependent amount will be CAD 11,744 for all eligible individuals, eliminating the current income-based restrictions. The additional CAD 3,000 (on top of the basic CAD 8,744) is only available to those with taxable income of CAD 25,000 or less.
