Nova Scotia passes motion to cut HST by 1 per cent next year

Nova Scotia has passed a motion Tuesday to permanently reduce the provincial portion of the harmonized sales tax (HST) beginning April 1, 2025.

Premier Tim Houston promised to cut the HST by one per cent during the 2024 provincial election campaign as a way to make life more affordable for Nova Scotians.

“We recognize the affordability issues that Nova Scotians are facing, that Canadians are facing. I’m very pleased we just passed in the house right now the first cut to HST in the history of this province, and we did that on the first day,” said Houston.

“So, that will fulfill a campaign promise that we made and we know that there’s more to be done.”

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Nova Scotia Finance and Treasury Minister Timothy Halman says this is just the first step in making life easier for Nova Scotians.

“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,” said Halman

Nova Scotia’s HST combines the provincial sales tax with the federal goods and services tax (GST) and is applied to the same types of goods and services.

The federal portion is five per cent.

Once the reduction takes effect, the new combined sales tax rate will be 14 per cent, making it the lowest in Atlantic Canada.

The HST in all three other Atlantic provinces is 15 per cent.

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

For more Nova Scotia news visit our dedicated provincial page.