Nova Scotia – Income Tax Brackets, Rates, & Provincial Tax Credits

Nova Scotia has a tax system similar to other Canadian provinces. Many of the provincial taxes and credits for residents of Nova Scotia complement similar credits at the federal level, but there are some unique credits for residents of Nova Scotia.

• Children's sports and arts tax credit: Claim up to $500 in eligible expenses per child (under 19) to help offset the cost of registering them in sports or arts-related activities. This refundable credit is calculated at Nova Scotia's lowest tax rate (8.79%), for a maximum credit of $43.95 per child.
• Fertility and Surrogacy Tax Credit: This refundable tax credit equals 40% of eligible fertility treatment or surrogacy-related medical expenses, up to $20,000 in costs per year (maximum credit of $8,000 per couple annually). Eligible expenses generally must be provided in Canada by a Nova Scotia-licensed medical practitioner or clinic (or through a referral from one). Importantly, this credit isn't claimed on your regular income tax return — you must file your return first, receive your CRA Notice of Assessment, then apply separately online through the Nova Scotia government, for each tax year.
• Basic needs assistance: For those who need help with daily basic needs such as clothing, food, or shelter, you may be allocated a monthly amount through Income Assistance. This amount is based on the number of people in your household and your personal circumstances.
• The Poverty Reduction Credit (PRC): This credit provides $125 quarterly (up to $500 per year) to eligible individuals or couples without children who received Income Assistance throughout the previous year and had an adjusted income below $16,000. You don't need to apply separately — eligibility is based on filing your tax return for the previous year. Note: the credit's continuation was not confirmed in Nova Scotia's 2026-27 budget, so check for updates before relying on it.
• The Nova Scotia Affordable Living Tax Credit (NSALTC): Paid alongside the federal GST/HST credit, this tax-free quarterly payment helps make life more affordable for low- and modest-income individuals and families. For July 2025 to June 2026, it provides up to $255 annually for an individual or couple, plus $60 per child, reduced by 5% of adjusted family net income over $30,000.
• The Nova Scotia Child Benefit (NSCB): In addition to the federal CCB, eligible families receive a provincial benefit combined into the same monthly payment. For July 2025 to June 2026, this is up to $127.08 per month for each child under 18, with the benefit phasing out for adjusted family net income between $26,000 and $34,000.