Effective Date: April 1, 2025
Type: Legislation
Nova Scotia will reduce its Harmonized Sales Tax (HST) from 10% to 9% starting 1 April 2025, lowering the combined federal-provincial sales tax rate from 15% to 14%. This move, announced on 23 October 2024 by the Finance and Treasury Board, is expected to cut provincial revenue by Can$260.8 million in 2025–26, rising to Can$272.4 million by 2027–28. HST is Nova Scotia’s second largest revenue source, generating about Can$2.7 billion annually. The province will maintain support for low-income earners through the affordable living tax credit. In Canada, GST is a 5% federal tax, with some provinces like Nova Scotia combining it with provincial tax through HST, while others use separate PST or RST systems.
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