On Feb. 18, the Nova Scotia government released its 2025 budget. The following are highlights of the key tax measures.
Personal tax measures
No personal income tax rate changes were announced in this year’s budget. The current personal combined income tax rates for 2025 are outlined below:
Personal (combined) federal and NS top marginal tax rates | |
| Â | Rate |
| Interest/regular income | 54.0% |
| Capital gains | 27.0% |
| Eligible dividends | 41.58% |
| Non-eligible dividends* | 48.28% |
*Rate may be subject to change based on corporate tax changes.
Personal income tax indexation
As of Jan. 1, 2025, the provincial government began indexing the taxable income brackets annually, as announced in the previous budget.
Extending enhancements to the basic personal, age, spousal and eligible dependant amounts to all filers
Effective for the 2025 tax year, it is intended the maximum basic personal, age, spousal, and eligible dependant amounts will be provided to all eligible tax filers, by removing the reduction provision for those with taxable income above $25,000. The basic personal amount will be $11,744 for all filers. The spousal amount will be $11,744, the eligible dependant amount will be $11,744 and the age amount will increase to $5,734. For future years, these 2025 credit amounts will be indexed for inflation based on the amount determined by the Personal Income Tax Indexation Regulations.
Corporate tax measures
The current and proposed corporate income tax rates for 2025 are outlined below:
| Â | Small business corporations | General corporations | ||
|  | Rate | Threshold | Non‑M&P | M&P |
| Nova Scotia | 2.5% / 1.5%¹ | $500,000 / $700,000² | 14.0% | 14.0% |
| Combined federal and NS | 2.5% / 1.5%¹ | $500,000 / $700,000² | 29.0% | 29.0% |
Âą Decreases from 2.5 per cent to 1.5 per cent on April 1, 2025.
² Increases from $500,000 to $700,000 on April 1, 2025.
Other tax measures
HST rate reduction
Effective April 1, 2025, the HST rate will be reduced by one per cent to 14 per cent.
Non‑resident Deed Transfer Tax increase
Effective April 1, 2025, the Non‑resident Deed Transfer Tax rate will increase from five per cent to 10 per cent. The higher tax rate applies to transactions with an Agreement of Purchase and Sale dated from April 1, 2025, onwards.
Next steps
Contact your Baker Tilly advisor to learn more about how we can help you navigate the complexities of the Canadian tax system.
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