Did you know that 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! But speaking of income taxes, let’s dive into this tax season’s tax brackets, credits, deductions, and more!
Nova Scotia’s income tax brackets for Tax Year 2023
Tax Rate | Tax Bracket | 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 |
For 2022 tax rates, review this link from the Canadian government.
Nova Scotia’s 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: This credit of $500 is intended to help cover the costs of registering your children under 19 into sports or arts related activities.
- Rebate for fertility treatments, surrogacy-related medical expenses: This refundable tax credit is meant to help ease the financial burden of fertility treatments and surrogacy related medical expenses. The credit equals 40 % of the cost of fertility treatments and surrogacy related medical expenses which must take place in Nova Scotia with a qualified medical practitioner or clinic.
- Basic needs assistance: For those that need assistance with their daily basic needs, such as clothing, food or shelter, you will be allocated a monthly amount. This amount is based on the number of people within your household and your personal circumstances.
- The poverty reduction credit (PRC): Although you don’t need to apply for this credit, this is based on filing your tax return for the previous year. If you’re common-law or single, with no children—this amount is paid out to one person within the household, receiving social assistance with an annual income of less than $16,000. The most you can receive annually is $500. So your payment would be $41.67 monthly. Want to know more?
- The affordable living tax credit: Going hand in hand with the PRC credit, this credit is for low-income individuals and their families.
- The Nova Scotia child credit: In addition to the federal CCB, you’ll receive a provincial credit as well. Families whose adjusted family net income is below $26,000 will receive $1,275 annually for each child they have. For families whose net income is above $26,000, and below $34,000, will receive $1,275 annually for the first child and half the rate ($637.50) for the second and subsequent children. For more detailed information review this link from the provincial website.
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.