Nova Scotia

Lower rate

The lower rate of Nova Scotia income tax is 5%.

The income eligible for the lower rate is determined using the Nova Scotia business limit. The Nova Scotia business limit is:

• $350,000 effective April 1, 2005; and
• $400,000 effective April 1, 2006.

You have to prorate these amounts using the number of days in each period.

Higher rate

The higher rate of income tax is 16%. This rate applies to all income not eligible for the lower rate.

For more information, see Dual tax rates.

Reporting the tax

You can use new Schedule 346, Nova Scotia Corporation Tax Calculation, to help you calculate the Nova Scotia tax before the application of credits. You do not have to file it with the return. See the schedule for more details.

On line 215 or 220 of Schedule 5, Tax Calculation Supplementary - Corporations, enter the amount of tax calculated.

See also Nova Scotia tax on large corporations.

Claiming the credits

Nova Scotia offers different tax credits. Details of each credit can be found in the following pages and their associated schedules:

• Political contribution tax credit
• Foreign tax credit
• Manufacturing and processing investment tax credit
• Corporate tax reduction for new small businesses
• Film industry tax credit
• Research and development tax credit

Forms and publications

• Schedule 346, Nova Scotia Corporation Tax Calculation
• Schedule 5, Tax Calculation Supplementary - Corporations

Government partners

• Nova Scotia (provincial site)