Premier Tim Houston announced a one percent decrease in the HST (Harmonized Sales Tax) rate beginning April 1, 2025. The HST rate in Nova Scotia will go from ten percent to only nine percent. This change marks the first time in fourteen years a Nova Scotian provincial government has made changes to sales tax – a change Premier Houston heralded as “…the largest tax break in Nova Scotia’s history” when making the announcement.
Taxpayers who are affected by these changes will likely notice reduced taxes but should note this change is only to the HST rate. The federal GST rate will remain at five percent, meaning after April 1, 2025, the combined rate will be 14% instead of 15%. The Nova Scotian budget also contains provisions for reindexing personal income tax brackets, rolling out a new universal lunch program for public school students, and allocating funds to the healthcare system with the goal of lasting, system wide, positive impact.
Business taxpayers will need to ensure their systems are correctly calculating and representing the tax amounts on invoices, so they can correctly remit. Those with questions or who wish to view the full budget can see the full information here https://novascotia.ca/budget. (Nova Scotia’s HST to Drop in 2025, Finance and Treasury Board News Release dated 23 October, 2024, and Budget 2024-25 is Building Nova Scotia, Faster, Finance and Treasury Board News Release dated 29 February, 2024)