Nova Scotia Budget 2025

On February 18, 2025, Finance and Treasury Board Minister John Lohr presented the 2025–2026 Nova Scotia budget. Titled “Unlocking Our Potential,” this year’s budget focuses on reducing taxes, recruiting more medical professionals, increasing the minimum wage, addressing the high cost of living, and building economic strength.

Sales Tax Measures

The budget includes a previously announced measure to decrease the Harmonized Sales Tax (HST) rate in Nova Scotia by 1% to 14%, effective April 1, 2025. This HST rate has remained at the current 15% for the past 14 years. The rate reduction will be achieved by decreasing the provincial portion of the HST from 10% to 9%, while the federal component will remain at 5%.

The government also noted that its rebate for the provincial component of the HST on new, purpose-built rental housing remains in place for projects that begin construction on or after September 12, 2023, and before January 1, 2031, provided construction is completed by December 31, 2025.

Corporate Tax Measures

The budget also contains measures to reduce Nova Scotia’s small business corporate income tax rate from 2.5% to 1.5%, effective April 1, 2025, and to increase the income threshold for this preferential rate from $500,000 to $700,000.

The material presented in this communication is intended to provide general information only and should solely be seen as broad guidance and not directed to the particular facts or circumstances of any individual who may read this publication. No liability is accepted for acts or omissions taken in reliance upon the content of this piece. Before taking (or not taking) any action, readers should seek professional advice specific to their situation from Ryan, LLC or other tax professionals.