The personal income tax is collected under the authority of Nova Scotia’s Income Tax Act (PDF).

The provincial personal income tax is calculated on individuals’ taxable income amount. The federal government defines the calculation of personal taxable income including: employment income, interest gains or losses, various tax deductions.

The Province sets the tax rates and income brackets for Nova Scotia. Both federal and provincial taxes are collected through the annual tax return to the Canada Revenue Agency (CRA).

 

The Rates

Nova Scotia's personal income tax rates vary by income brackets as follows:
Tax Rates	Taxable Income Bracket
8.79%	0 - $29,590
14.95%	$29,590 - $59,180
16.67%	$59,180 - $93,000
17.50%	$93,000 - $150,000
21%	$150,000 and above as of January 1, 2010
Prior to the 2010 tax year, a surtax of 10% is applied on Nova Scotia tax exceeding $10,000.

Personal tax credits

Similar to federal deductions, gross provincial taxable income amount can be reduced by a number of non-refundable tax credits, if the individual qualifies.

Tax credits available to Nova Scotians for the 2014 tax year:
Tax Credit	Amount
Basic Personal Amount	$8,481
Age Amount	$4,141
Age Tax Credit
Spouse or Common-law Partner Amount	$9,329
Child Care Benefit Tax Credit	$100/month
Canada Pension Plan contributions
Employment Insurance Premiums
Pension Income Amount	$1,173
Caregiver Amount	$4,898
Disability Amount	$7,341
Sport and Recreational Expenses for Children	$500
Tuition and Education Amount
Medical Expense Credits
Donations & Gifts
Dividend Tax Credit
Political Contributions
Labour-sponsored Venture Capital Tax Credit	$2,000
Equity Tax Credit	35% of Investment
Volunteer Firefighter and Ground Search & Rescue Tax Credit	$500

Low Income Tax Reduction The Nova Scotia personal income tax system provides an additional tax reduction for individuals and families with low incomes. Depending on adjusted family income, this reduction could decrease a family’s taxes by $300 for the taxfiler plus $300 for a spouse or eligible dependent plus $165 per dependent child.