#1EY Building a better working world Nova Scotia Combined federal and provincial personal income tax rates - 20231 Taxable income Nova Scotia Marginal rate on Lower lim it Upper lim it Basic Rate on Eligible dividend Other dividend Capital tax² 2 excess income' income³ gains4 $ to $ 11,894 0.00% 0.00% 0.00% 0.00% 11,895 to 15,000 8.79% 0.00% 6.67% 4.40% 5 15,001 to 21,000 273 28.79% 6.82% 19.28% 14.40% 21,001 to 29,590 2,000 23.79% 0.00% 13.53% 11.90% 29,591 to 53,359 4,044 29.95% 8.42% 20.62% 14.98% 53,360 to 59,180 11,163 35.45% 15.98% 26.94% 17.73% 59,181 to 93,000 13,226 37.17% 18.35% 28.92% 18.59% 93,001 to 106,717 25,797 38.00% 19.50% 29.87% 19.00% 106,718 to 150,000 31,010 43.50% 27.09% 36.20% 21.75% 150,001 to 165,430 49,838 47.00% 31.92% 40.22% 23.50% 6 165,431 235,676 to 235,675 57,090 50.32% 36.50% 44.04% 25.16% and up 92,434 54.00% 41.58% 48.27% 27.00% 1. The tax rates reflect budget proposals and news releases to January 15, 2023. Where the tax is determined under the alternative minimum tax provisions (AMT), the above table is not applicable. AMT may be applicable where the tax otherwise payable is less than the tax determined by applying the relevant AMT rate to the individual's taxable income adjusted for certain preference items. 2. The tax determined by the table should be reduced by the applicable federal and provincial tax credits (see chart below), other than the basic personal tax credits, which have been reflected in the calculations (see Note 6 below). 3. The rates apply to the actual amount of taxable dividends received from taxable Canadian corporations. Eligible dividends are those paid by public corporations and private companies out of earnings that have been taxed at the general corporate tax rate (the dividend must be designated by the payor corporation as an eligible dividend). Where the dividend tax credit exceeds the federal and provincial tax otherwise payable on the dividends, the rates do not reflect the value of the excess credit that may be used to offset taxes payable from other sources of income. This assumption is consistent with prior year rates. 4. The rates apply to the actual amount of the capital gain. The capital gains exemption on qualified farm and fishing property and small business corporation shares may apply to eliminate the tax on those specific properties. 5. Individuals resident in Nova Scotia on December 31, 2023 with taxable income up to $11,894, pay no provincial income tax as a result of a low- income tax reduction. The low-income tax reduction is clawed back for income in excess of $15,000 until the reduction is eliminated, resulting in an additional 5% of provincial tax on income between $15,001 and $21,000. 6. The federal basic personal amount comprises two elements: the base amount ($13,521 for 2023) and an additional amount ($1,479 for 2023). The additional amount is reduced for individuals with net income in excess of $165,430 and is fully eliminated for individuals with net income in excess of $235,675. Consequently, the additional amount is clawed back on net income in excess of $165,430 until the additional tax credit of $222 is eliminated; this results in additional federal income tax (e.g., 0.32% on ordinary income) on net income between $165,431 and $235,675. A chart of the most common non-refundable tax credits is available on the next page Source: Ernst & Young Electronic Publishing Services Inc.#2EY Building a better working world Nova Scotia Federal and provincial personal tax credits - 20231 Federal Provincial credit credit Amount of credits: Basic personal credit (see notes 2 and 6 above) 2,3 $ 2,028 $ 745 Spousal credit (reduced when spouse's income over $0 (federal) and $848 (provincial)) 2,3 2,028 745 Equivalent-to-spouse credit (reduced when dependant's income over $0 (federal) and $848 (provincial)) 2,3 2,028 745 Infirm dependant aged 18 or over (reduced when dependant's income over $5,683 (provincial)) 245 Caregiver credit (reduced when the particular person's income exceeds $18,783 (federal) and $13,677 (provincial)) 1,200 431 Age credit (65 and over) 4 1,259 364 Disability credits 1,414 645 300 103 18 Pension income (maximum) Education per month Canada employment credit Child fitness and arts credits 6 Credits as a percentage of: Tuition fees Medical expenses Charitable donations - First $200 - Remainder CPP contributions⁹ El premiums 205 44 15.00% 8.79% 15.00% 8.79% 15.00% 8.79% 29%/33% 21.00% 8.79% 8.79% 15.00% 15.00% 1. This table lists the most common non-refundable tax credits; other non-refundable and refundable credits may be available. 2. The federal tax value of the basic personal credit, the spousal credit and the equivalent-to-spouse credit represents the amount available to taxpayers in the highest tax bracket. An additional amount may be available for individuals with net income below $235,675 (see Note 6 to the chart above). An enhanced provincial basic personal credit, spousal credit and equivalent-to-spouse credit may available for individuals with taxable income under $75,000, providing an additional tax credit of up to $264, reduced for taxable income over $25,000 and eliminated when taxable income reaches $75,000. 3. A federal caregiver tax credit of $375 may be available in respect of a spouse, dependant or child who is dependent on the individual by reason of mental or physical infirmity. 4. The maximum federal age credit of $1,259 occurs at $42,335 of net income and declines to nil as net income rises to $98,309. The maximum provincial age credit of $364 occurs at $30,828 of net income and declines to nil as net income rises to $58,435. Also, an enhanced provincial age credit is available for individuals with taxable income under $25,000, resulting in a tax credit of $129. The enhanced tax credit is gradually reduced and eliminated when taxable income reaches $75,000. 5. A federal supplement of $825 is available for an individual who is under 18 years of age, reduced by the total child care and attendant care expenses claimed for the individual in excess of $3,221. A provincial supplement of $303 is available for an individual who is under 18 years of age, reduced for the total child care and attendant care expenses claimed for the individual in excess of $2,346. 6. Effective for 2022 and subsequent years, the provincial children's sports and arts refundable tax credit may be available for eligible expenses paid in respect of a child under 19 years of age. 7. The federal credit applies to eligible medical expenses that exceed the lesser of $2,635 and 3% of net income. The provincial credit applies to eligible medical expenses that exceed the lesser of $1,637 and 3% of net income. 8. The federal tax credit rate of 33% applies to charitable donations in excess of $200 to the extent the individual has taxable income in excess of $235,675; otherwise, a federal tax credit rate of 29% applies. 9. One-half of CPP paid by self-employed individuals is deductible in computing taxable income. Source: Ernst & Young Electronic Publishing Services Inc.