2023 Nova Scotia Income Tax Calculator
Plug in a few numbers and we’ll give you visibility into your tax bracket, marginal tax rate, average tax rate, and payroll tax deductions, along with an estimate of your tax refunds and taxes owed in 2023.
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Nova Scotia Provincial and Federal tax brackets
Your taxable income places you in the following tax brackets.
| Canadian federal tax bracket | Canadian federal tax rate |
|---|---|
| $53,359 or less | 15.00% |
| $53,359 - $106,717 | 20.50% |
| $106,717 - $165,430 | 26.00% |
| $165,430 - $235,675 | 29.00% |
| More than $235,675 | 33.00% |
| Nova Scotia tax bracket | Nova Scotia tax rate |
|---|---|
| first $29,590 | 8.79% |
| over $29,590 up to $59,180 | 14.95% |
| over $59,180 up to $93,000 | 16.67% |
| over $93,000 up to $150,000 | 17.50% |
| over $150,000 | 21.00% |
Step by step process in depth list down below. Determine taxable income by deducting any pre-tax contributions to benefits To determine your taxable income, take into account your gross income for the year. Your gross income can be income from salary, wages, tips, commissions, and many other sources. Taxable income is your gross income less deductions. Deductions can lower your taxable income so find out if you are eligible for income tax deductions and subtract them from your gross income to arrive at your taxable income.
Withhold all applicable taxes (federal and provincial) Your employer could be withholding taxes from your salary. If your taxes are withheld from your paycheck, you’ll have to file tax returns to receive the refunds or pay due tax if less or excess taxes were withheld from your paycheck. Withholding tax rates are the same as income tax rates that include both federal and provincial tax rates.
Deduct any post-tax contributions to benefits After paying taxes, you arrive at your net income. You can contribute to a retirement or savings account from your after-tax income. Post-tax deductions are deducted from your paycheck after the withholding of taxes such as payments towards life insurance plans or union dues.
Garnish wages, if necessary Garnishment of wages is the withholding of a portion of your salary by your employer that is remitted to the government. Garnished wages are a part of your taxable income therefore must be reported on your tax returns.
The result is net income Taxable income is your gross income less deductions. Federal and provincial taxes are charged on your taxable income. After paying taxes, you arrive at your net income.
Explore other provincial or territorial tax calculators
FAQs
Tax is due on April 30 for employed taxpayers and June 15 for self-employed taxpayers.
In Nova Scotia, taxes are paid on graduated rates which means that as your taxable income increases, your tax-rate and tax liability increases. You’ll pay a tax rate of 8.79% on the first $29,590 of taxable income. Plus 14.95% on the next $29,590. Plus 16.67% on the next $33,820. Plus 17.5% on the next $57,000. Plus 21% on the amount over $150,000.
To calculate your taxes in Nova Scotia, you can use a Nova Scotia Income Tax Estimator or manually calculate your income using the federal and Nova Scotia tax rate.
Tax deducted from your paycheck depends on your taxable income and the federal and Nova Scotia tax rates that apply to your income. However, if excess tax is deducted from your paycheck, you may get a refund when you file your return.
Nova Scotia doesn’t have carbon tax but it has cap-and-trade program in place that limits the greenhouse gas emissions in the province. Companies have emission allowances that can also be sold and bought. For instance, if a company has reached its emission allowance, it can purchase more allowances from a company that has emitted less.
Ideally, you should keep your Nova Scotia tax records for up to six years.
The CRA takes about 12 weeks to process paper returns. Tax refunds take up to 2 weeks if you file Nova Scotia Income Tax Return online or 8-12 weeks if you file paper return.
To calculate your annual income, you need to check the tax brackets Nova Scotia. You can also calculate your Income using a Nova Scotia payroll calculator.
Nova Scotia tax returns can be filed online through NETFILE and T1 paper returns can be mailed to Sudbury Tax Centre, 1050 Notre Dame Avenue, Sudbury ON P3A 5C2
Capital gains tax applies to the 50% of your capital gains amount. For the first $29,590 of taxable income, capital gains tax is 11.90%. On taxable income over $221,708, the capital gains tax rate is 27%.
Withholding tax in Nova Scotia is same as income tax rates. The income tax rate is 8.79% on the first $29,590 of taxable income. Plus 14.95% on the next $29,590. Plus 16.67% on the next $33,820. Plus 17.5% on the next $57,000. Plus 21% on the amount over $150,000.
Marginal tax rate Nova Scotia depends on your taxable income. For instance, if your taxable income is $52,260, your marginal tax rate will be 35.45%. However, if your taxable income is lesser, such as $32,200, your marginal tax rate will be 29.95%. Similarly, if its higher such as $152,000, your marginal tax rate will be 47%.
Tax brackets Nova Scotia determine the tax rate that applies to your income. Your tax increases as your income increases as you pay taxes on graduated rates. On the first $29,590, you’ll pay taxes on 8.79% tax rate. Plus 14.95% on the next $29,590. Plus 16.67% on the next $33,820. Plus 17.5% on the next $57,000. Plus 21% on the amount over $150,000.
When you sell a house in Nova Scotia, you are required to pay capital gains tax. However, if your house is your principal residence and you qualify for the principal tax exemption for sales, your income from house sales will not be taxed.
Nova Scotia tax credits are available to the residents of Nova Scotia including Nova Scotia Tax Credit For Low Income Seniors, Nova Scotia Innovation Equity Tax Credit, Nova Scotia Affordable Living Tax Credit and other tax credits.
You can pay income tax online through the CRA’s ‘My Payment’ service and calculate your taxes and net income using the Wealthsimple tax calculator.
Tax on Split Income TOSI is the tax on specific income of individuals who were born after the year 2003 and adults who earn related income. TOSI can be calculated using the Form T1206 on the CRA website.
RRSP deductions can reduce your taxable income and total tax liability. You can use a tax calculator Nova Scotia to calculate your net income after the RRSP deduction.