Canada: Tax proposals in 2025 budget (Nova Scotia)
Tax rate changes and increased thresholds for small businesses
The Nova Scotia Finance Minister on February 18, 2025, delivered the province's 2025 budget.
Key tax proposals include a reduction in the small business income tax rate from 2.5% to 1.5% and an increase in the small business income threshold from $500,000 to $700,000, effective April 1, 2025. The budget also extends eligibility for the maximum amount of certain personal non-refundable tax credits.
Other tax measures would:
- Increase the basic personal amount from $8,744* to $11,744, effective January 1, 2025
- Decrease Nova Scotia's portion of the harmonized sales tax rate from 10% to 9%, effective April 1, 2025, reducing the overall HST rate to 14%
- Increase the nonresident deed transfer tax rate from 5% to 10%, effective April 1, 2025
Read a February 2025 report prepared by the KPMG member firm in Canada
*$=Canadian dollar