On February 23, 2026, the Nova Scotia (NS) Finance Minister John Lohr tabled the 2026 Budget, extending the key 2025 tax measures, including:
- Indexed personal income tax brackets. For 2026, the indexation is set at 1.6 per cent;
- Harmonized sales tax (HST) at 14 per cent for 2026, which may impact the calculation of certain taxable benefits; and
- Enhanced personal tax credits extended, including the basic personal amount, age amount, spousal amount and the eligible dependant.
These changes are subject to legislative approval. The institute will monitor and let our members know when this change has passed legislation.
Once legislation has passed, employers in NS should:
- Ensure their payroll system is updated with the changes; and
- Communicate the upcoming changes to employees.