Summary: Nova Scotia Budget 2024

Of note, NS Budget 2024 introduces an indexed personal income tax system, which will be effective starting in 2025. For 2024, the corporate and personal tax rates remain unchanged. 

NS Budget 2024 projects a surplus of $40.3 million for the 2023-24 fiscal year, compared to a $259.4 million deficit projected in the previous budget.

Fiscal projections for the next four years are as follows:

Business tax measures

Corporate tax rates

NS Budget 2024 announces no changes to the corporate tax rates or the $500,000 small business limit.

Combined federal and provincial corporate tax rates

Personal tax measures

Personal income tax rates

NS Budget 2024 introduces an indexed personal income tax system so that taxable income brackets and certain non-refundable tax credits will be subject to annual adjustment for inflation. Indexation will apply to the basic personal amount, common-law partner amount, age amount, and amounts for eligible dependants and infirm dependants (aged 18 or older). These changes will take effect January 1, 2025.

For this year, NS Budget 2024 doesn’t change the personal tax rates. The personal tax brackets and the respective marginal tax rates for 2024 as follows:  

The top combined federal and provincial marginal tax rates for 2024 are as follows:

Sales tax measures

NS Budget 2024 proposes no changes to the current 15% Harmonized Sales Tax (HST) rate, which is composed of a federal component of 5% and a provincial component of 10%.

Other notable measures

• Housing – NS Budget 2024 provides a 10% provincial HST rebate for the construction of new purpose-built, multi-unit rental housing projects that could tally up to $80-$100 million annually ($13.5 million in the initial year) and an additional $5 million to expand the Affordable Housing Development Program to include student housing.
• Health care – NS Budget 2024 provides an additional $360 million for Nova Scotia Health and IWK Health to deliver their programs and services to Nova Scotia’s expanding population and to make the healthcare system more efficient. The budget also provides an additional $184.3 million for the Action for Health plan to continue to progress primary healthcare, emergency care and other initiatives, $42 million for cancer care treatment, and $36 million toward improving mental health and addictions care programs.
• Skilled workforce – NS Budget 2024 invests more than $46 million toward the province’s $100 million three-year plan to grow the skilled trades workforce over the next three years, and $27 million for the More Opportunity for Skilled Trades (MOST) tax refund program, which offers a provincial income tax refund to eligible workers of targeted trades, nursing, and film related industries.
• Seniors – NS Budget 2024 invests $26.5 million to low-income seniors through the Seniors Care Grant to help with the cost of household services. The budget also assists eligible seniors with $18 million towards a provincial income tax rebate and $1 million more towards the existing Property Tax Rebate.
• Education and child care – NS Budget 2024 announces nearly $19 million to launch a new public school student lunch program, provides an additional $42.5 million towards reduced child care fees and increased availability, and $12 million more for improved pay and workforce growth of early childhood educators.

Have questions? Let’s talk. Contact your local advisor or reach out to us here.

Visit our Budget 2024 hub to learn more about all federal and provincial budgets.   

^{Disclaimer 
The information contained herein is general in nature and is based on proposals that are subject to change. It is not, and should not be construed as, accounting, legal or tax advice or an opinion provided by Grant Thornton LLP to the reader. This material may not be applicable to, or suitable for, specific circumstances or needs and may require consideration of other factors not described herein.}