On March 29, 2022, Minister of Finance and Treasury Board Allan MacMaster presented the 2022–2023 Nova Scotia budget. Projecting a deficit of approximately $506 million, this year’s budget focuses on addressing the province’s recent healthcare challenges, while fostering both economic and population growth.
Significant investments are planned to improve access to primary and long-term healthcare, expand mental health initiatives, enhance childcare and education, promote immigration, attract skilled trade workers, encourage innovation and sustainable economic development, restore key infrastructure, and support communities.
The budget announcement did not include any corporate income or commodity tax changes. However, two new property tax measures have been introduced to help tackle Nova Scotia’s housing availability and affordability crisis.
Property Tax Measures
Non-Resident Property Tax
Effective April 1, 2022, Nova Scotia will introduce a non-resident property tax at a rate of $2 for every $100 of assessed value. This new tax will only apply to non-resident owners of residential real property and, for properties with multiple owners, only if less than 50% of the owners are residents of the province. In addition, exemptions will be available for residential properties with three or more units and properties leased to Nova Scotia residents for a period of at least 12 months.
Non-Resident Deed Transfer Tax
The province will also institute a provincial deed transfer tax at a rate of 5% of the value of residential real property purchased by non-residents of Nova Scotia, effective April 1, 2022. The deed transfer tax will not apply to transactions completed prior to the implementation date, and an exemption will be provided for purchases by non-residents who move to Nova Scotia within six months of the closing date.
Further details on both property tax initiatives are expected to be released in the coming days.
For information on new and extended government funding initiatives included in this year’s provincial budgets, please navigate to Mentor Works News.
Further details on Nova Scotia’s 2022–2023 budget may be found on the province’s website at:
If you have any questions about how tax changes proposed in recent Canadian budgets might impact your organization, please do not hesitate to call the Ryan TaxDirect® line at 1.800.667.1600.