Corporate income tax rates
Companies doing business in Nova Scotia are required to pay corporate income tax.
Nova Scotia corporate income tax rates apply to companies with business activities in Nova Scotia.
The provincial corporate income tax is calculated on taxable income amount. The federal government defines the calculation of taxable income including:
- net income
- capital cost allowance
- various tax deductions
Both federal and provincial corporate income taxes are collected through the annual tax return to Canada Revenue Agency.
Tax rates
There are 2 corporate income tax rates in Nova Scotia:
Effective April 2025, the lower corporate income tax rate is 1.5%. This rate applies to taxable income earned in the province of Canadian-controlled private corporation up to the Nova Scotia business limit of $700,000. This rate is also known as the Small Business Rate and applies to all Canadian-controlled private corporation with limited taxable capital.
The higher rate of income tax is 14%. This rate applies to taxable income earned in Nova Scotia that does not qualify for the lower rate.
Provincial tax credits
Companies may be eligible for various provincial tax credits that can reduce their income tax payable.