News release

Nova Scotia Takes Next Step to Permanently Reduce HST

Finance and Treasury Board

The government has passed a motion to make life more affordable for Nova Scotians by permanently reducing the provincial portion of harmonized sales tax (HST) beginning April 1, 2025.

Finance and Treasury Board Minister Timothy Halman introduced the motion in the legislature today, December 10.

“We are committed to making life easier for Nova Scotians, and we’re making it happen by permanently reducing the HST,” said Minister Halman. “Today’s motion is the next step to reduce the HST for good in Nova Scotia by one percentage point from 10 per cent to nine per cent. I’m proud this is my first act with the new government because I know what a difference this will make for Nova Scotians.”

Nova Scotia’s HST combines the provincial sales tax with the federal goods and services tax (GST), and it is applied to the same types of goods and services. The federal portion is five per cent.

The new combined sales tax rate in Nova Scotia will be 14 per cent, making it the lowest in Atlantic Canada. Newfoundland and Labrador, New Brunswick and Prince Edward Island have a harmonized sales tax of 15 per cent.

The permanent reduction of the provincial sales tax in Nova Scotia is the largest tax break in Nova Scotia’s history and the first time in 14 years that a provincial government has made changes to the sales tax.

Quick Facts:

  • beginning January 1, 2025, the Province will index personal income tax brackets and credits, saving Nova Scotians over $160 million in taxes annually by 2028
  • HST is the second largest provincial revenue source behind personal income tax, accounting for about $2.7 billion and 17.1 per cent of total revenues
  • a one percentage point reduction to the provincial value-added tax rate is expected to reduce provincial revenues by about $260.8 million in the 2025-26 fiscal year; $265.5 million in 2026-27; and $272.4 million in 2027-28
  • lower income earners who receive the affordable living tax credit will continue to be supported at the same level
  • to permanently reduce the HST by one per cent, the Province must provide notice in writing, make a public announcement, and pass a legislative vote; these steps have been completed
    • the final step in reducing the rate is a regulation change by the federal government

Additional Resources:

News release – Budget 2024-25 is Building Nova Scotia, Faster: https://news.novascotia.ca/en/2024/02/29/budget-2024-25-building-nova-scotia-faster

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