Canada Nova Scotia HST 1% cut April 2025

Reduction from 10% to 9% of Harmonised Sales Tax. Combined GST rate goes from 15% to 14%

The Canadian province of Nova Scotia is to cut its Harmonised Sales Tax rate by 1% to 10% from 1 April 2025.  With the federal level 5%, that means the combined sale tax rate drops from 15% to 14%.

The change was announced on 23 October 2024 by the Finance and Treasury Board.

HST is the second largest provincial revenue source behind personal income tax, accounting for about Can$2.7 billion and 17.1 per cent of total revenues

A 1% reduction to the provincial value-added tax rate is expected to reduce provincial revenues by about Can$260.8 million in the 2025-26 fiscal year; Can$265.5 million in 2026-27; and Can$272.4 million in 2027-28

Lower income earners who receive the affordable living tax credit will continue to be supported at the same level.

Canadian GST, HST and PST sales tax structure

In Canada, Goods and Services Tax (GST) is a federal tax of 5% applied on most goods and services nationwide.

Some provinces have a Harmonized Sales Tax (HST), combining GST with their provincial tax rates, while others charge a separate Provincial Sales Tax (PST) or Retail Sales Tax (RST).

Alberta is unique in not charging any provincial sales tax, applying only the 5% GST. The HST rates vary by province and simplify the tax system in regions where it is implemented. Sales taxes support public services and vary according to each province’s fiscal requirements and policies.