Canada: Tax proposals in 2026 budget (Nova Scotia)
The budget does not include changes to the province’s corporate or individual (personal) income tax rates.
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February 24, 2026
The Nova Scotia Finance Minister on February 23, 2026, delivered the province's 2026 budget. The budget does not include changes to the province’s corporate or individual (personal) income tax rates.
Key tax proposals include extending the Capital Investment Tax Credit to December 31, 2035, and increasing the Financial Institutions Capital Tax (FICT) to 6% (from 4%).
Other tax measures include:
- Vaping product tax harmonization: Nova Scotia will tax vaping substances under the federal-provincial coordinated vaping tax framework, effective April 1, 2026.
- Electric and Hybrid Vehicle Levy: The Electric and Hybrid Vehicle Levy—effective October 1, 2026—must be paid when a prescribed vehicle is registered and every two years thereafter when the vehicle registration is renewed.
Read a February 2026 report prepared by the KPMG member firm in Canada