Nova Scotia’s famous landmark, the Old Town Clock, has been keeping time since 1803. That’s a century before Canadian personal income taxes were introduced!
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.
Nova Scotia’s Progressive Tax Rate Structure
As with most provinces, Nova Scotia uses a progressive tax structure with 5 tax brackets. Nova Scotia discontinued indexing, therefore the provincial tax brackets have remained the same for a number of years. Visit the government of Nova Scotia’s Personal Income Tax page for tax bracket rates.
Nova Scotia’s Income Tax Brackets for Tax Year 2020
Taxable Annual Income
|8.79%||on the first $29,590||$29,590|
|14.95%||on the next $29,590||over $29,590 up to $59,180|
|16.67%||on the next $33,820||over $59,180 up to $93,000|
|17.5%||on the next $57,000||over $93,000 up to $150,000|
|21%||on the portion over $150,000||over $150,000|
Nova Scotia’s Tax Credits
- A complete list of Non-Refundable Tax Credits and other credits or deductions for Nova Scotia residents can be found in this CRA link: Nova Scotia Tax and Credits.
- Nova Scotia’s Affordable Living Tax Credit (ALTC): The Affordable Living Tax Credit provides tax-free quarterly payments to eligible Nova Scotians. The credit is issued by the federal government with the GST/HST Credit and is based on your family net income.
- Nova Scotia Low-Income Tax Reduction: Nova Scotia provides an additional tax reduction for individuals and families with low incomes. Depending on adjusted family income, this reduction could decrease an eligible person’s taxes by $300, plus $300 for a spouse or eligible dependant, and $165 for each dependant child.
There is an allowable amount of income that you can earn before you must start paying taxes. That is called the “basic personal” or “personal amount.” For the 2020 tax year, the Federal Basic Personal Amount (BPA) is $13,229, while the Nova Scotia amount is $8,481.
This TurboTax article provides more information on the federal tax rates, as well as links to other provinces and tax calculators: An Overview of Canada’s Tax Brackets.
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