Tax Flash Bulletin
2022 Nova Scotia Budget Highlights
INDIVIDUALS
Personal Tax Rates
The budget did not contain any changes to provincial personal income tax rates or the provincial tax brackets. The 2022 brackets remain the same as 2021 because Nova Scotia does not index its provincial tax brackets to inflation.
Nova Scotia Tax Brackets and Tax Rates
| 2021 Taxable Income | 2021 | 2022 |
|---|---|---|
| $0 to $29,590 | 8.79% | 8.79% |
| $29,590 to $59,180 | 14.95% | 14.95% |
| $59,180 to $93,000 | 16.67% | 16.67% |
| $93,000 to $150,000 | 17.50% | 17.50% |
| Over $150,000 | 21.00% | 21.00% |
Top Combined Nova Scotia and Federal Rates
| Income Type | 2021 | 2022 |
|---|---|---|
| Salary, interest, pension, foreign | 54.00% | 54.00% |
| Eligible dividends | 41.58% | 41.58% |
| Non-eligible dividends | 48.28% | 48.28% |
| Capital gains | 27.00% | 27.00% |
Top rates apply to taxable income over $221,708 ($216,511 for 2021) Based on known federal and provincial rates at March 29, 2022
Introduction of Children’s Sports and Arts Tax Credit
The budget introduces a $500 refundable tax credit to help parents offset the costs of artistic, cultural, and physical activities for children under the age of 19. This measure is effective for the 2022 income tax year and subsequent years.
The tax credit will apply to eligible expenditures for programs in literary arts, visual arts, performing arts, music, media, languages, customs, and heritage; as well as organized physical activities and programs.