The dividend tax credit for eligible dividends is 8.85% of grossed-up dividends. This change was effected by Bill 27 Financial Measures (2011) Act, which was introduced in April 2011.
The resulting eligible dividend tax credit rates for Nova Scotia are:
| NS Eligible Dividend Tax Credit | ||||
| Year | 2009 | 2010 | 2011 | 2012 & later |
| Gross-up % | 45% | 44% | 41% | 38% |
| eligible dividend tax credit as a % of | ||||
| grossed-up dividends | 8.85% | 8.85% | 8.85% | 8.85% |
| actual dividends | 12.83% | 12.74% | 12.48% | 12.21% |
The Nova Scotia dividend tax credit rate for non-eligible dividends is defined as 1.5% of the taxable dividend, as revised by the NS 2025 budget. For 2019 and earlier years, it was defined as a % of the federal gross-up.
| NS Dividend Tax Credit Rate for Non-Eligible Dividends | ||||
| Year | Gross-up Rate |
%of
Federal Gross-up |
% of Grossed-up Dividend |
% of Actual Dividend |
| 2025 + | 15% | 11.50% | 1.50% | 1.725% |
| 2019-2024 | 15% | 22.94% | 2.99% | 3.440% |
| 2018 | 16% | 22.94% | 3.16% | 3.666% |
| 2016-2017 | 17% | 22.94% | 3.33% | 3.896% |
| 2015 | 18% | 22.94% | 3.50% | 4.130% |
| 2014 | 18% | 38.50% | 5.87% | 6.930% |
| 2013 | 25% | 38.50% | 7.70% | 9.625% |
The Nova Scotia table of marginal tax rates show the marginal tax rates for eligible and non-eligible dividends and other income.