The NS 2012 Budget announced that the 2012 spouse and
spousal equivalent tax credits would be increased to $8,481 to match the basic
personal amount, and the disability amount would be increased to $7,341.
Also called the Sport and Recreational Expenses for
Children tax credit, this is a non-refundable tax credit, claimed at the
lowest Nova Scotia tax rate (8.79% for 2010 and 2011). A maximum amount of $500 per child can be
claimed, for the registration of an eligible child in
a designated sport or recreational activity, which
would equal a maximum tax credit of $43.95 ($500 x
8.79%) per child. This tax credit has been
available since 2005. Either spouse can claim
the tax credit, or it can be split between both
An eligible child is under 18 years of age at the end of
the year, and
your child by blood, marriage, common-law
partnership, or adoption;
dependent on you for support and under your
custody and control, or
a spouse or common-law partner of your child
There is no additional tax credit for a child with a disability.
resident of Nova Scotia on December 31 of the tax year
volunteer firefighter for a minimum of six months during the tax
did not receive salary, wages or compensation, other than reasonable
reimbursement or allowance for expenses, and
listed as a volunteer firefighter on the report filed by the
volunteer fire department.
To be eligible, firefighters must participate in no less than
20 per cent of emergency calls responded to by the volunteer fire department;
training sessions conducted by the volunteer fire department; and meetings held
by the volunteer fire department.
The Nova Scotia 2008 budget announced that this credit has
been expanded to include ground search and rescue volunteers.
Nova Scotia Refundable Tax Credits
NS Affordable Living Tax Credit (NSALTC)
Beginning July 1, 2010, low and modest income
households started receiving a refundable tax credit payment
quarterly. The maximum annual amount was $240 per household, plus $57
for each child under 19 living in the household.
As per the Nova Scotia 2011 Budget, the NSALTC payments were indexed by 2.2%, effective July 1, 2011.
As per the Nova Scotia 2012 Budget, the NSALTC will be increased effective
July 1, 2012, to $255 for an individual adult and to $60 for a dependent
The credit is reduced by 5% of adjusted family income above
$30,000, and will be completely phased out at a household income of $35,100. The credit
is paid in conjunction with the federal GST/HST
Beginning July 1, 2010, the Poverty Reduction Credit provides tax-free payments to low income individuals and
couples. $200 per year is paid ($50 quarterly) to individuals
who are at least 19 years of age, with no
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 do not have to apply for
this allowance. Eligibility will be automatically determined by the
Department of Community Services, through the Income Assistance Program.
As per the Nova Scotia 2011 Budget, the Poverty
Reduction Credit payments were indexed by 2.2%, effective July 1, 2011.
As per the Nova Scotia 2012 Budget, the Poverty Reduction Credit payments
will be increased to $250 per year, effective July 1, 2012.
NS Tax Reduction for Low-Income Seniors
Approximately 18,000 seniors who receive the Guaranteed
Income Supplement (GIS) will no longer pay provincial income tax.
Regulations are being developed that will allow the
Province of Nova Scotia to implement a credit for seniors who are GIS recipients
and Nova Scotia residents, and have provincial taxes owing for the 2010 taxation year
Canada Revenue Agency (CRA) is not administering this
credit, so NS GIS recipients will file their 2010 tax returns as usual,
and make payments for any taxes owing. It is important for tax
returns to be filed so that the refund can be provided by the NS
In July of each year, the Province of Nova Scotia will
receive a file from CRA advising them of GIS recipients and the provincial
income tax they paid. The Province will then issue refund cheques to
GIS recipients. As per the Nova Scotia 2011 Budget, the cheques are
expected to be issued in early fall.
Graduate Retention Rebate
This program is available to students who graduate in 2009 and later
years, and replaces the Graduate Tax Credit.
The graduate retention rebate is claimed as part of the annual tax
Amount of the rebate:
Graduates with a university degree
tax reduction of up to $15,000 over 6 years, to a maximum of
$2,500 per year
Graduates with a college diploma or certificate
tax reduction of up to $7,500 over 6 years, to a maximum of
$1,250 per year.
This tax credit was replaced in 2009 by the Graduate
Retention Rebate (see above).
First-Time Home Buyers Rebate
A rebate of 18.75%, to a maximum of $3,000 (effective April
1, 2012), of the
provincial portion of the HST is provided on new homes purchased by
first-time home buyers. The amount of the rebate prior to April 1, 2012
is a maximum of $1,500. The rebate will increase where the Agreement of
Purchase and Sale is entered into after March 31, 2012, or when
the building permit is issued for an owner-built home after that date.
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