TaxTips.ca - Nova Scotia 2010 budget

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Atlantic Provinces -> Nova Scotia -> 2010 Budget

Nova Scotia 2010 Budget - April 6, 2010

All Budget 2010 documents can be found on the Nova Scotia Budget 2010-2011 website.

Highlights of Tax Changes:

Personal Income Tax

High Income Tax Rate / Elimination of Surtax

Effective January 1, 2010, a new tax bracket will be introduced. Taxable income in excess of $150,000 will be taxed at a rate of 21%. At the same time, the high-income surtax is being eliminated.

The Nova Scotia tax rate tables have been revised to reflect this change.

Tax Reduction for Low-Income Seniors

Sales Taxes

HST increase

The government is increasing the HST rate from 13% to 15% effective July 1, 2010, with the provincial portion being increased from 8% to 10%.

Nova Scotia Sales Tax on Designated Personal Property

Effective July 1, 2010, the Nova Scotia sales tax on used motor vehicles and other designated personal property such as aircraft, boats and boat trailers will be 15%.

HST Point-of-Sale Rebates

Effective July 1, 2010, point-of-sale rebates will be provided to remove the provincial portion of the HST from

	diapers
	children's clothing and footwear, and
	feminine hygiene products.

These rebates are in addition to the currently existing point-of-sale rebates on home energy and books.

The current application-based rebate for first time home buyers will continue, but there will be changes to eligibility for builders to claim on behalf of homebuyers, and in the administration of the rebate.

Refundable Credits

Affordable Living Tax Credit

Beginning July 1, 2010, low and modest income households will receive a refundable tax credit payment quarterly. The annual amount will be $240 per household, plus $57 for each child under 19 living in the household. The credit will be reduced by 5% of adjusted family income above $30,000. The credit will be paid in conjunction with the federal Goods and Services Tax Credit.

Poverty Reduction Credit

Effective July 1, 2010, the Poverty Reduction Credit will provide tax-free payments to low income individuals and couples. $200 per year will be paid ($50 quarterly) to individuals or couples:

	who are at least 19 years of age, with no dependents
	who are receiving Social Assistance through the Income Assistance program as their main source of income
	with a total annual income of $12,000 or less for the previous tax year

Social Assistance clients will not have to apply for this allowance. Eligibility will be automatically determined by the Department of Community Services, through the Income Assistance Program.

Corporate Tax

Effective January 1, 2011, the small business corporate income tax rate will be reduced from 5% to 4.5%.

Revised: February 25, 2011

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