Provincial tax
Nova Scotia Business Tax Rates for 2026
Nova Scotia business tax rates for 2026: 1.5% on the first $700,000 of small business income, 14% HST and every provincial income bracket.
Sources checked October 20264 min read
Key points
- 10.5% combined on the first $500,000 of active business income
- 29% combined general corporate rate
- 14% HST since April 1, 2025, filed with the CRA
- Highest provincial small business limit in Canada: $700,000
Corporate tax rates in Nova Scotia
Nova Scotia applies its 1.5% small business rate to the first $700,000 of active business income, the highest provincial limit in Canada. The general rate is 14%.
Federal tax still moves to its general rate at $500,000. So a Nova Scotia corporation pays 10.5% on its first $500,000, 16.5% on the next $200,000, and 29% above $700,000.
| Rate | Nova Scotia | With federal tax |
|---|---|---|
| Small business rate | 1.5% | 10.5% |
| General rate | 14% | 29% |
| Income the small business rate covers | $700,000 | $500,000 federally |
Sales tax in Nova Scotia
Nova Scotia lowered its HST by a point on April 1, 2025, to 14%. The provincial portion is now 9%, filed with the federal 5% on one CRA return.
Supplier invoices dated before that change still show the old rate, which is worth knowing when an input tax credit claim looks a point too high.
Nova Scotia income tax brackets for 2026
The first bracket ends at $30,995, earlier than anywhere else in Canada, so Nova Scotia's second rate of 14.95% reaches modest incomes.
At the other end, the 21% rate above $157,124 gives a combined top rate of 54%, second only to Newfoundland and Labrador.
| Taxable income from | Up to | Rate |
|---|---|---|
| $0 | $30,995 | 8.79% |
| $30,995.01 | $61,991 | 14.95% |
| $61,991.01 | $97,417 | 16.67% |
| $97,417.01 | $157,124 | 17.5% |
| $157,124.01 | No upper limit | 21% |
Payroll costs in Nova Scotia
There is no provincial payroll tax or employer health tax in Nova Scotia. Payroll costs are the federal ones, plus workplace insurance through the Workers' Compensation Board of Nova Scotia.
Filing in Nova Scotia
Corporate tax and HST both run through the CRA on federal returns. Nova Scotia's own pieces are the workplace insurance account and the annual renewal of the company with the Registry of Joint Stock Companies.
Nova Scotia questions, answered
What is the small business tax rate in Nova Scotia?
10.5% combined on the first $500,000, then 16.5% up to $700,000, because Nova Scotia's limit is higher than the federal one.
What is the HST rate in Nova Scotia?
14% since April 1, 2025.
Why does income between $500,000 and $700,000 pay 16.5%?
Nova Scotia keeps charging its 1.5% small business rate up to $700,000, but federal tax switches to 15% after $500,000.
More for Nova Scotia businesses
Official sources
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Important. This article provides general educational information, not legal or tax advice for a specific business. Rules, administrative policies, rates and deadlines can change. Confirm your facts and current obligations with the responsible government agency and a qualified adviser.