As of April 1st, 2025, the provincial component of the HST in Nova Scotia will drop from 10% to 9%, reducing the total rate to 14%. This decrease will directly affect your billing, accounting and tax management.
To help you plan ahead, our experts have prepared a few key points for a smooth transition.
1. Which rate applies?
The HST rate depends on when the tax becomes payable:
Before April 1st, 2025 → 15%
As from April 1st, 2025 → 14%.
In general, tax becomes due on the earliest of the following dates:
- The day of payment,
- The date on which the consideration becomes due (e.g. invoice date, contractual payment due date).
2. Transition rules to know
Sales of real estate
Before April 1st, 2025
If ownership or possession is transferred before this date
From 1st April 2025
If ownership and possession are transferred after this date
Goods and services transferred to Nova Scotia
A 9% self-assessment may be required if a good or service is sourced from another province:
Tangible personal property
Imported from April 1st
Goods delivered by carrier
Shipped before April 1st, but received after this date
Services or intangible property
Provided in another province, but paid or due on or after April 1st.
Goods imported into Nova Scotia
The 14% rate applies if:
- The property is imported by a Nova Scotian from April 1st.
- The accounting date under the Customs Act is from April 1st.
3. Taxable benefits
The tax rate on benefits in kind will be gradually reduced:
Automobile operating costs
Currently
11%
2025
10.25%
Subsequent years
10%
Other benefits
Currently
14%
2025
13.25%
Subsequent years
13%
Need help adjusting your systems? Our experts are here to guide you and ensure your compliance. Contact us today!
More questions? We have the answer.
Which is the most taxed province in Canada?
The Atlantic provinces (Nova Scotia, New Brunswick, Prince Edward Island and Newfoundland & Labrador) currently have the highest tax rates in Canada, with an HST of 15%. However, with Nova Scotia’s planned reduction to 14% in April 2025, this province will no longer be among the highest-taxed.
How do I claim HST GST QST in Quebec?
To claim HST in Quebec, follow these steps:
- Complete form FP-2189 “General Application for Rebate of GST/HST and QST”,
- Include all required supporting documents (original invoices, proof of payment),
- Submit your application to Revenu Québec within the prescribed deadline,
- For registered businesses, use your regular GST/HST return instead.
How much is the harmonized sales tax (on goods and services)?
HST rates vary by province:
- 15%: New Brunswick, Nova Scotia (until March 31, 2025), Newfoundland and Labrador, Prince Edward Island,
- 14%: Nova Scotia (from April 1, 2025),
- 13%: Ontario,
- In other provinces and territories, only the 5% GST applies, sometimes combined with a separate provincial sales tax.
What is the tax rate in Nova Scotia?
In Nova Scotia, the consumption tax rate has undergone a major change:
- Until March 31, 2025 HST is 15% (composed of 5% federal GST and 10% provincial tax),
- From April 1, 2025 HST will increase to 14% (5% federal GST and 9% provincial tax).
This one-percentage-point reduction in the provincial portion represents the most significant tax change in the province’s history. Nova Scotia will thus become the Atlantic province with the lowest HST rate, This will have a positive impact on the purchasing power of Nova Scotians and the competitiveness of local businesses.
For companies doing business with Nova Scotia, it is crucial to :
- Update billing systems by April 1, 2025,
- Check transitional rules applicable to transactions straddling the changeover date,
- Ensure that HST is applied at the correct rate according to the tax due date.
