Nova Scotia - Provincial corporation tax

Important notice
Changes have been announced to the Nova Scotia small business income tax rate. See What's new for corporations.

Lower rate

The lower rate of Nova Scotia income tax is 4.5% effective January 1, 2011. Previously, it was 5%. This lower rate applies to taxable income earned in Nova Scotia that qualifies for the federal small business deduction.

This rate will be pro-rated for tax years that straddle January 1, 2011.

The Nova Scotia business limit is $400, 000.

Higher rate

The higher rate of income tax is 16%. This rate applies to taxable income earned in Nova Scotia that does not qualify for the lower rate.

Note
These rates also apply to the income earned in the Nova Scotia offshore area.

For more information, see Dual tax rates.

Reporting the tax

You can use 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 and/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
• Corporate tax reduction for new small businesses
• Film industry tax credit
• Research and development tax credit
• Energy tax credit
• Digital media tax credit

Forms and publications

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

Government partners

• Nova Scotia (provincial site)