Atlantic Provinces -> Nova Scotia

Non-refundable personal tax credits

For information on the amounts of most non- refundable tax credits available to Nova Scotia residents, see the non-refundable personal tax credits tables.

As announced in the 2006 budget, the basic personal amount is increased by $250 per year over a 4-year period starting in 2007 and ending in 2010.  This is a total increase of 13.83% in 4 years.  The province's other non-refundable credits are also being increased by 13.83% over the 4 years.  The 2011 Budget announced a further increase of $250 to the basic personal amount for 2011, to $8,481 from $8,231.  Other non-refundable credits that will be increased by the same proportion are the credits for spouse or common-law partner, dependent, pension income, disability, caregiver, age, and infirm/dependents age 18 or older.

NS low income tax reduction

Bill 27 Financial Measures (2011) Act, introduced in April 2011, provides a low income tax deduction to a widowed person for that person's spouse if the spouse died during the taxation year.

See Canada Revenue Agency ( CRA) form NS428 from the  Nova Scotia General Income Tax and Benefit Package for detailed calculation.

Healthy Living Tax Incentive

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 spouses.

An eligible child is under 18 years of age at the end of the year, and

There is no additional tax credit for a child with a disability.

Only receipts from groups which have registered with the Department of Health Promotion and Protection are eligible for the tax credit.

See the Nova Scotia Department of Finance information on the Healthy Living Tax Credit.

The Nova Scotia 2008 budget announced that starting in 2009, this credit would be extended to all Nova Scotians.  However, the 2009 budget announced that this extension would be deferred indefinitely.

The Nova Scotia Sport/Recreation Credit is calculated by the Canadian Tax Calculator, but the amount is not checked to ensure that the maximum is not exceeded.

Volunteer firefighter tax credit

Volunteer firefighters can claim a tax credit by entering the amount of $250 (for 2007) on line 83 of form NS428 from the  Nova Scotia General Income Tax and Benefit Package, if they meet all of the following conditions:

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 amount of $250 will be increased to $375 for 2008, and $500 for 2009.

For more information see the Nova Scotia Department of Finance news release from January 31, 2008.

The Nova Scotia 2008 budget announced that this credit has been expanded to include ground search and rescue volunteers.

Graduate Retention Rebate

This program is available to students who graduate in 2009 and later years, and replaces the Graduate Tax Credit (see below).

The graduate retention rebate will be claimed as part of the annual tax return.

Amount of the rebate:

Graduate Tax Credit

This tax credit is replaced in 2009 by the Graduate Retention Rebate (see above).

To receive the NS graduate tax credit, a taxpayer must:

The credit is claimed on the tax return in the year of graduation, and any unused portion can be claimed in the following 2 years.  The maximum tax credit is $2,000 in 2008 and later years.

See the Nova Scotia web page on the Graduate Tax Credit.

Refundable Tax Credits

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 is $240 per household, plus $57 for each child under 19 living in the household.  The credit is reduced by 5% of adjusted family income above $30,000.  The credit is paid in conjunction with the federal GST/HST credit.

As per the Nova Scotia 2011 Budget, the NSALTC payments will be indexed by 2.2%, effective July 1, 2011.

See also:

Poverty Reduction Credit

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 or couples:

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 will be indexed by 2.2%, effective July 1, 2011.

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 and beyond.

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.

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.

Revised: December 12, 2011