2024 NS Budget Highlights
2024 Nova Scotia Budget Highlights
On February 29, 2024, Nova Scotia’s Minister of Finance and Treasury Board, Allan MacMaster, tabled the province’s 2024-25 budget. We have highlighted selected measures from the budget that affect individuals and small businesses in Nova Scotia.
INDIVIDUALS
Personal Tax Rates
The 2024 brackets will remain the same as 2023 because Nova Scotia does not index its provincial tax brackets to inflation. The budget proposes that personal tax brackets will start to be indexed beginning January 1, 2025.
Nova Scotia Tax Brackets and Tax Rates
| Taxable Income | 2023 | 2024 |
|---|---|---|
| $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 | 2023 | 2024 |
|---|---|---|
| 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 $246,752 ($235,675 for 2023) based on known federal and provincial rates as of February 29, 2024.
Income Tax Measures
- Beginning January 1, 2025, Nova Scotia provincial personal income tax brackets, basic personal amount and certain non-refundable tax credits will be indexed to Nova Scotia’s inflation rate
Social Services and Cost of Living Assistance Measures
- Introduction of new universal lunch program for students in the public school system
- Increase in childcare funding for lower fees for families, creating more spaces and enhanced after school care
- Increase in initiatives under the supportive housing plan and other programs to address homelessness
- Significant changes in the Disability Support Program and help people with disabilities to better meet their the needs
Healthcare System Enhancement Measures
- Healthcare spending increased for Nova Scotia Health and IWK to meet the needs of growing population, improving access and lowering wait times
- Mental health initiatives, including new insured services program to support publicly-funded mental health and addictions care
Housing Assistance and Infrastructure Improvements
- Rebate of the 10% provincial HST on the new construction of purpose-built, multi-unit apartments
- Property Tax Rebate offering eligible seniors a rebate of half of their property taxes, up to $800
- Your Energy Rebate Program to eliminate the 10% provincial HST on home heating
Expansion of Tax Reductions for Skilled Trade Workers
- Continuing the More Opportunity for Skilled Trades (MOST) tax refund program for workers under the age of 30 in high-demand occupations, including skilled trades, film and video occupations and expanding in the 2023 tax year to include eligible nurses.
BUSINESSES
Corporate Tax Rates
The budget did not propose any changes to corporate income tax rates and it did not change the $500,000 provincial small business income threshold. The calendar year rates below reflect a December 31st year end.
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% |
Based on known federal and provincial rates as of February 29, 2024
* Canadian-controlled private corporation
Business Income Tax Measures
- Capital Investment Tax Credit, a refundable corporate tax credit which can be used to claim capital equipment and property for use in Nova Scotia and recently expanded to include emerging sectors like aerospace and manufacturing
Refer to the 2024 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.