2025 Nova Scotia Budget Highlights

Nova Scotia Minister of Finance and Treasury Board John Lohr tabled the province’s 2025 budget on Tuesday, February 18, 2025. This year’s budget, titled Unlocking Our Potential, is focused on strengthening the economy, managing the cost of living, and taking action to improve healthcare.

The province’s budget announces that it will decrease its small business income tax rate to 1.5 percent (from 2.5 percent) and increase the small business limit to $700,000 (from $500,000), effective April 1, 2025, among other changes. No change to the personal income tax rate was announced.

Personal income tax measures

Basic personal amount and other credit amounts

The budget increases the basic personal, spousal, and eligible dependent amounts to $11,744 and the age amount to $5,734, effective 2025.

The budget also extends the eligibility for these credits to all taxpayers by removing the reduction provision for taxpayers with taxable income above $25,000, effective taxation year 2025.

Business income tax measures

Small business tax rate reduction and threshold increase

The budget decreases the small business corporate income tax rate to 1.5 percent (from 2.5 percent) and increases the small business income threshold to $700,000 (from $500,000), effective April 1, 2025.

Other tax measures

Harmonized sales tax reduction

The budget confirms the government’s intent to reduce its portion of the harmonized sales tax (HST) rate to 9 percent (from 10 percent), resulting in the province’s HST rate reducing to 14 percent (from 15 percent), effective April 1, 2025.

Non-residential deed transfer tax increase

The budget increases the Non-Resident Deed Transfer tax rate to 10 percent (from 5 percent), effective April 1, 2025. The higher tax rate will apply to transactions with an Agreement of Purchase and Sale dated from April 1, 2025, onwards.

More details and highlights of the 2025 Nova Scotia Budget can be found here.