The Canadian Taxpayers Federation released its annual New Year’s Tax Changes report today to highlight major tax changes in 2025.

“Tax cuts are great news for Nova Scotians in the new year,” said Devin Drover, CTF Atlantic Director. “In 2025, the Houston government will cut HST by one per cent and finally end income tax bracket creep, leaving more money in the pockets of hardworking taxpayers.”

Sales Tax: The HST will drop to 14 per cent as of April 1, 2025. The average Nova Scotian household will save over $350 per year from this tax cut.

Bracket Creep: Nova Scotians will no longer be punished with bracket creep tax hikes beginning in the 2025 tax year. Historically, the Nova Scotia government did not index income tax brackets to inflation. This meant that every year, as incomes went up with inflation, Nova Scotians paid more in income taxes as they were pushed into higher tax brackets. The Nova Scotia government announced an end to the bracket creep in the 2024 provincial budget, saving median household over $100 each year.

Both these tax cuts contrast with planned hikes from the Trudeau government. Planned federal tax hikes in 2024 include increases to payroll taxes, capital gains taxes, alcohol taxes and the federal carbon tax.

“While Premier Tim Houston is cutting taxes, the Trudeau government is making life more expensive by raising taxes,” said Drover. “Prime Minister Justin Trudeau should drop his plans to take more money out of Canadians’ pockets and deliver serious tax relief.”

You can find the CTF’s New Year’s Tax Changes report here.