Personal Income Tax Rates and Credits for Nova Scotia
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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.View entire presentation