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%. For details on the transitional rules for this rate change, please see Transitional Rules for Nova Scotia HST Rate Decrease Released.

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.

More Information

Further information on Nova Scotia’s 2025–2026 budget may be found on the province’s website at: https://novascotia.ca/budget/.

If you have any questions about how these proposed changes might impact your organization, please contact Ryan TaxDirect^® at taxdirect@ryan.com or 1.800.667.1600.