Atlantic Provinces -> Nova Scotia -> Nova Scotia Non-Refundable Personal Tax Credits
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.
NS Taxation Act 2000, s. 10(1), 10A(1), 10A(2), 10A(3), 10B, 10C, 10D
The Nova Scotia 2017 Budget announced that the Basic Personal Amount, Spousal Amount, and Eligible Dependant Amount would be increased by $3,000 from $8,481 to $11,481 for the 2018 and subsequent taxation years, for all tax filers who have taxable income of less than $25,000.
The usual tax credits will be calculated, and then a supplement of $3,000 basic personal amount would be allowed for tax filers with taxable income of up to $25,000. If a tax filer is able to claim the usual spousal or eligible dependant amount, then an additional amount of $3,000 would be allowed for tax filers with taxable income of up to $25,000, but the net income of the spouse or eligible dependant reduces the additional $3,000.
For individuals with taxable income of greater than $25,000, the $3,000 is reduced by 6% of the amount by which the individual's taxable income exceeds $25,000. This results in the additional $3,000 being eliminated at taxable income of $75,000. The spousal/eligible dependant amount supplement is reduced by the net income of the spouse/eligible dependant, so if the spouse/eligible dependant has $3,000 or more of net income, the supplement is eliminated.
The Nova Scotia tables of marginal tax rates have been revised to reflect the effect of the $3,000 additional basic personal amount. Because this amount is reduced as taxable income increases, it increases the marginal tax rate for taxable incomes between $25,000 and $75,000.
Examples of spouse/eligible dependant amount supplement:
1. When the taxpayer has
$45,000 of taxable income, and spouse or eligible dependant has $1,000 of net
NS Taxation Act 2000, s. 10(2), 10A(7), 10G
The Nova Scotia 2017 Budget announced that the age amount tax credit would be increased by $1,465 for all eligible tax filers who have taxable income of $25,000 or less. The supplement of $1,465 will be reduced at a rate of 2.93% of the amount by which the individual's taxable income exceeds $25,000. This results in the additional $1,465 being eliminated at taxable income of $75,000.
Examples of age amount supplement:
1. When the taxpayer has
$45,000 of taxable income
NS Low Income Tax Reduction
NS Taxation Act 2000, s. 35
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.
NS Taxation Act 2000, s. 36B
This non-refundable tax credit, new for the 2014 taxation year as announced in the NS 2014 Budget, is a deduction of $1,000
As per the NS 2015 Budget, this tax credit is eliminated effective January 1, 2015. The last taxation year for which it could be claimed was 2014.
Also called the Sport and Recreational Expenses for Children tax credit, this was a non-refundable tax credit, claimed at the lowest Nova Scotia tax rate (8.79%). A maximum amount of $500 per child could 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 was available since 2005. Either spouse could claim the tax credit, or it could 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 were eligible for the 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.
NS Taxation Act 2000, s. 38A, Volunteer Fire Fighter Tax Credit Regulations
Volunteer firefighters and ground search and rescue workers can claim a tax credit by entering the refundable tax amount of $500 (for 2013 and later years) on line 6228 of form NS428 from the Nova Scotia General Income Tax and Benefit Package, and is entered on line 479 of the federal tax return. All of the following conditions must be met:
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.
For more information see the Volunteer Firefighters and Ground Search & Rescue Tax Credit information on the Nova Scotia Finance and Treasury Board website. The forms to be filed with the Department of Finance and Treasury Board can be found on this website as well.
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. In order to receive this credit, an income tax return must be filed.
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 was increased effective July 1, 2012, to $255 for an individual adult and to $60 for a dependent child.
The credit is reduced by 5% of adjusted family income above $30,000, and is completely phased out at a household income of $35,100. The credit is paid in conjunction with the federal GST/HST credit, with a quarterly payment in July, October, January and April of each year.
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 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.
Seniors who receive the Guaranteed Income Supplement (GIS) will receive a refund of Nova Scotia provincial income tax paid, unless the amount paid was less than $50.
Regulations were developed that 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 and later taxation years.
Canada Revenue Agency (CRA) is not administering this credit, so NS GIS recipients will file their 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 government.
The refund is available to seniors who reported GIS income on line 146 of their tax return, and have Nova Scotia provincial income tax owing on line 428 of their tax return. Refunds will not be done for amounts less than $50. The maximum refund amount is $10,000.
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. The cheques for 2012 refunds were mailed at the end of July 2013.
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.
See Access Nova Scotia First-Time Home Buyers Rebate for application details.
The Nova Scotia 2014 budget announced that the Graduate Retention Rebate would be eliminated effective January 1, 2014. Graduates were still able to receive the credit for the 2013 tax year.
This program was available to students who graduated in 2009 and later years, and replaced the Graduate Tax Credit.
The graduate retention rebate is claimed as part of the annual tax return.
Amount of the rebate:
See the NS Finance information on the Graduate Retention Rebate.
Graduate Tax Credit
This tax credit was replaced in 2009 by the Graduate Retention Rebate (see above).
Revised: April 22, 2019
Copyright © 2002 Boat Harbour Investments Ltd. All Rights Reserved. See Reproduction of information from TaxTips.ca