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Home -> Atlantic Provinces -> Nova Scotia -> Nova Scotia Dividend Tax Credits

Nova Scotia Dividend Tax Credits

Nova Scotia Eligible Dividends

NS Income Tax Act s. 21(b)

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%

Nova Scotia Non-Eligible Dividends

NS Income Tax Act s. 21(a)

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.

Revised: May 16, 2025

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