Nova Scotia's HST will be reduced to 14 per cent next year: provincial government
The Nova Scotia government says it plans to reduce the province's harmonized sales tax (HST) rate by one percentage point next year.
The province's HST combines the provincial value-added tax with the federal goods and services tax (GST), and it is applied to the same types of goods and services.
“We’re always looking for ways to provide relief to Nova Scotians. Now, in addition to indexing the personal income tax, we’re lowering the HST rate to help people who are struggling with the cost of living and additional taxes from the federal government,” said Nova Scotia Premier Tim Houston in a news release.
“This will be the largest tax break in Nova Scotia’s history. It’s the first time in 14 years that a provincial government in Nova Scotia has made changes to the sales tax. And this time it will be a decrease.”
The federal portion is five per cent. On April 1, 2025, the province says the provincial portion will decrease from 10 to nine per cent.
The new HST rate will be 14 per cent once the reduction is made.
Starting Jan. 1, 2025, the province says it will also index personal income tax brackets and credits, saving Nova Scotians more than $160 million in taxes annually by 2028.
According to the provincial news release, 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.
For more Nova Scotia news visit our dedicated provincial page.
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