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These are the 2025 rates, for income earned in 2025 (the return filed in spring 2026). See the current 2026 Nova Scotia rates.

Nova Scotia Tax Rates for 2025

The top combined federal and Nova Scotia marginal rate is 54.00% on taxable income over $253,414. Capital gains are taxed at half your marginal rate, up to 27.00%; at the top, eligible dividends are taxed at 41.58% and non-eligible dividends at 49.99%.

Marginal, capital gains and dividend rates by income

Nova Scotia combined marginal and capital gains tax rates by taxable income, 2025
Taxable incomeMarginal rateCapital gains rateEligible dividendsNon-eligible dividends
Up to $30,507 23.29% 11.65% — —
$30,507 to $57,375 29.45% 14.73% — —
$57,375 to $61,015 35.45% 17.73% — —
$61,015 to $95,883 37.17% 18.59% 18.35% 30.64%
$95,883 to $114,750 38.00% 19.00% 19.50% 31.59%
$114,750 to $154,650 43.50% 21.75% 27.09% 37.92%
$154,650 to $177,882 47.00% 23.50% 31.92% 41.94%
$177,882 to $253,414 50.00% 25.00% 36.06% 45.39%
Over $253,414 54.00% 27.00% 41.58% 49.99%

Rates apply to the next dollar of that type of income on top of the taxable income shown. Dividend rates are shown from $58,523 of other income; below that, the basic personal amounts and the non-refundable dividend credits mean little or no tax is payable. Eligible dividends come mainly from public corporations; non-eligible dividends mainly from private corporations' small-business income. Sources: the CRA's 2025 federal and provincial tax rates and brackets, with dividend tax credit rates from KPMG's Tax Facts 2025-2026, cross-checked against TaxTips.ca's combined rate tables. Credits (including the federal basic personal amount reduction for high incomes), the alternative minimum tax and income-tested benefits are not included. Estimates only, not tax advice.

What changed from 2024 to 2025

Nova Scotia headline rates, 2024 compared with 2025
20242025Change
Top marginal rate54.00%54.00%no change
Top capital gains rate27.00%27.00%no change
Top eligible dividend rate41.58%41.58%no change
Top non-eligible dividend rate48.28%49.99%+1.71 pts
Lowest marginal rate23.79%23.29%-0.50 pts
Top rate starts at$246,752$253,414+2.7%
  • The federal lowest rate was cut from 15% to 14% on July 1, 2025, so the rate for the 2025 tax year is a blended 14.5% (CRA footnote).
  • Federal brackets were indexed by 2.7% for 2025 (KPMG).
  • Nova Scotia cut its dividend tax credit on non-eligible dividends to 1.5% from 2.99% on January 1, 2025 (KPMG).
Nova Scotia marginal tax rate by income, 2025 A step chart of the combined federal and Nova Scotia marginal rate as taxable income rises, from 23.3 percent at the lowest incomes to 54.0 percent above $253,414. 0% 10% 20% 30% 40% 50% 60% 23.3% 29.5% 37.2% 43.5% 50.0% 54.0% $0 $100k $200k $300k $400k Taxable income (2025)
Nova Scotia: your tax rate steps up as income rises. Each rate applies only to the income inside its slice, not to all of your income. Moving into a higher bracket raises the rate on the next dollar, not on the dollars below it. That next-dollar rate is your marginal rate, and it is the one that matters for deductions, losses and capital gains.
Dividend gross-up and tax credit A $1,000 eligible dividend is grossed up 38 percent to $1,380, taxed at your rates for about $600, then reduced by federal and provincial credits of $329, leaving about $271 of tax. You receive $1,000 eligible dividend Gross-up +38% $1,380 added to your income Tax at your rates $600 on $1,380 of income Dividend credits -$329 fed $207 + prov $122 Tax you pay $271 27.1% of the dividend Example with $120,000 of other taxable income in Nova Scotia, 2025 rates.
How an eligible dividend is taxed (example in Nova Scotia). Dividends from Canadian corporations are first grossed up to approximate the corporation's pre-tax profit, taxed like other income, and then reduced by dividend tax credits. That is why dividend rates are lower than the rate on interest. Non-eligible dividends use a smaller gross-up and smaller credits.
Capital gains inclusion rate Ten thousand dollars of interest is fully taxable, costing $4,350 at a 43.5 percent marginal rate. Ten thousand dollars of capital gain is only half taxable, costing $2,175, which is an effective rate of 21.8 percent. The same $10,000, taxed two ways (at a 43.5% marginal rate) Interest or salary fully taxable 100% taxable: $10,000 Tax $4,350 Capital gain only half is included 50% not taxed: $5,000 50% taxable: $5,000 Tax $2,175 Effective tax rate on a capital gain = marginal rate x 50% 43.5% x 50% = 21.8% on the gain, so a $1 loss saves half as much as a $1 of salary costs. Example at a 43.5% marginal rate. Your province and income change the rate (see Tax Rates).
The 50% capital gains inclusion rate. Only half of a capital gain is added to your taxable income, so the tax on a gain is half the tax on the same amount of interest or salary. The inclusion rate is 50% for 2026. A proposed increase to two-thirds was cancelled in March 2025.

Example: a $20,000 capital gain

With $120,000 of other taxable income in Nova Scotia, half of the gain ($10,000) is added to your income. The extra federal and provincial tax is about $4,350, an effective rate of 21.75% on the gain. A capital loss of the same size in the same year would save about the same amount.

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Frequently asked questions

What is the top marginal tax rate in Nova Scotia in 2025?

The top combined federal and provincial rate in Nova Scotia is 54.00%, on taxable income over $253,414.

What is the capital gains tax rate in Nova Scotia?

Half of a capital gain is taxable, so the rate on a gain is half of your marginal rate: from 11.65% on lower incomes up to 27.00% at the top.

What is the dividend tax rate in Nova Scotia in 2025?

At the top bracket the combined rate is 41.58% on eligible dividends and 49.99% on non-eligible dividends. At lower incomes the rates are lower because of the federal and Nova Scotia dividend tax credits; see the table above.

How much tax would I pay on a $20,000 capital gain in Nova Scotia?

With $120,000 of other taxable income, a $20,000 gain adds about $4,350 of federal and Nova Scotia tax, an effective rate of 21.75% on the gain.

Nova Scotia rates for other years

Other provinces in 2025

Related: Canadian tax-loss harvesting guide · superficial loss rule

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