Nova Scotia Sales Tax: Your 2025 Guide to HST

Nova Scotia is one of the Canadian provinces using a harmonized sales tax (HST) system. Although HST streamlines the tax process, it can still be tricky. This Nova Scotia tax guide 2025 will help you easily navigate the system.

Nova Scotia Sales Tax System

Nova Scotia combines the provincial and federal sales taxes by adopting a harmonized sales tax system into a single tax. Starting April 1, 2025, the sales tax in Nova Scotia was reduced from 15% to 14%.

The Canada Revenue Agency (CRA) administers and collects the entire HST on behalf of both the federal and provincial governments. This makes it simpler for businesses because they only need to register, remit, and file with one agency.

What is Nova Scotia HST?

Nova Scotia HST comprises 5% federal GST (Goods and Services Tax) and 9% provincial tax. This applies to most goods and services sold or provided within the province, including:

1. Tangible Personal Property (Goods) - Retail sales of furniture, clothing, electronics, appliances, vehicles, and other physical products.
2. Digital Products & Services - Streaming services, downloadable software, eBooks, and digital media.
3. Professional & Personal Services - Legal, accounting, consulting, and other professional services. It also applies to personal services like spas, salons, and fitness services.
4. Real Property & New Residential Housing - Sales of new homes (HST applies, but rebates may be available), renovations and construction services.
5. Restaurant Meals & Takeout Food - Prepared food and beverages.
6. Accommodation Services - Hotel, motel, and short-term lodging (less than one month).
7. Transportation & Admission Services - Taxi, ride-sharing, and commercial transportation within Canada. Admissions to concerts, movies, sports events, and amusement parks

Nova Scotia Sales Tax Exemptions & Rebates

Nova Scotia acknowledges exempt and zero-rated supplies. Although both are not charged with HST, there's a difference.

Exempt supplies are not charged with HST, and suppliers cannot claim Input Tax Credits (ITCs) for related business expenses like residential rent.

Zero-rated supplies are taxable at 0%, so no HST is charged. However, suppliers are entitled to claim ITCs.

Here's a table showing the different categories of goods and services and their tax status according to Nova Scotia sales tax.

Category	Tax Status	Examples
Retail Goods & Services	Taxable (14% HST)	Clothing, furniture, electronics, restaurant meals
Professional & Personal Services	Taxable (14% HST)	Legal, accounting, consulting, salon services
New Residential Housing	Taxable (14% HST, rebate may apply)	New home sales over $350,000
Accommodation & Short-term Rentals	Taxable (14% HST)	Hotel stays, Airbnb
Basic Groceries	Zero-Rated (0% HST)	Bread, milk, vegetables, meat
Prescription Drugs & Medical Devices	Zero-Rated (0% HST)	Insulin, pacemakers, hearing aids
Exports of Goods & Services	Zero-Rated (0% HST)	Goods shipped outside Canada, international services
Residential Rent	Exempt	Monthly apartment rent
Child Care & Educational Services	Exempt	Tuition fees, daycare fees, tutoring in approved subjects
Health & Dental Services	Exempt	Medical and dental care by licensed practitioners
Financial Services	Exempt	Bank fees, loans, insurance premiums

The province also offers specific HST rebates in some instances. The Nova Scotia Provincial Tax Commission administers several rebates. Here are some forms of rebates.

First-Time Home Buyers HST Rebate

This is available to buyers of newly constructed houses. The rebate is up to 18.75% of the provincial portion of HST.

Your Energy Rebate Program

All energy sources for the home, including heating fuel, natural gas, kerosene, and electricity, are subject to rebate when delivered by a registered vendor.

Provincial Portion of Harmonized Sales Tax (HST) Rebate

This is applicable to motor vehicles purchased by physiologically impaired persons. It also applies to motor vehicles and heavy equipment sold to volunteers and municipal fire departments. Building materials for repair, improvement, and restoration are also subject to this rebate.

CRA also administers HST point-of-sale rebates for some purchases. This applies to printed books, children's clothing and footwear, diapers, and feminine hygiene products.

Calculate Your Nova Scotia Sales Tax

Calculating sales tax in Nova Scotia is straightforward once you understand the province’s Harmonized Sales Tax (HST) rate of 14%. This section will guide you step by step on how to calculate Nova Scotia sales tax.

Step-by-Step Calculation for HST

For example, you are selling a dining table in Nova Scotia for $850. You need to calculate the 14% HST to determine the total amount payable by the customer.

Step 1: Determine the HST rate

Nova Scotia HST rate (as of April 1, 2025) = 14%

Sale Price: $850

Step 2: Calculate the HST amount

HST Amount = Sale Price x 0.14

HST Amount = $850 x 0.14

HST Amount = $119.00

Step 3: Add the HST to the sale price

Total Price = Sale Price + HST Amount

Total Price = $850 + $119.00

Total Price = $969.00

If, for instance, you receive a total invoice of $969.00 for a dining table purchase in Nova Scotia, and you want to find out the pre-tax price and the HST. Use the formula below.

Step 1: Know the HST rate

HST rate = 14%

Total Price = $969

Step 2: Calculate the pre-tax price

Formula:

Pre-Tax Price = Total Price / (1 + HST Rate)

Pre-Tax Price = $969 / (1 + 0.14)

Pre-Tax Price = $969 / 1.14

Pre-Tax Price = $850

Step 3: Calculate the HST amount

HST Amount = Total Price - Pre-Tax Price

HST Amount = $969 - $850

HST Amount = $119

Using Online Nova Scotia Sales Tax Calculators & Tools

Sales tax in Nova Scotia is pretty straightforward since the province uses HST. But if you want to skip the manual calculation, you can use the Nova Scotia sales tax calculator. Visit Canada's GST/HST Calculator and input the necessary details.

Choose Nova Scotia in the drop-down list for "Province or territory." Then, enter $850 for "Amount before taxes" based on our example above. The sales tax calculator will show you the HST and total after taxes amounts.

If you want to find the amount before sales tax is applied, use the reverse sales tax calculator. Just choose Nova Scotia for "Province or territory" and input the total after taxes amount. In our example, it is $969. The calculator will give you the HST and before taxes amounts.

The results should be the same as shown in our example above. You can search for “sales tax calculator Nova Scotia” online if you need one.

Compliance Essentials for Nova Scotia Sales Tax

Ensuring sales tax compliance is essential for businesses operating in Nova Scotia. This section will walk you through the key steps and requirements for Nova Scotia tax compliance.

Nova Scotia Sales Tax Registration, Collection, & Remittance

Here's a compliance checklist for businesses operating in Nova Scotia, from registration to remittance.

1. Registration

• Determine if your business earns $30,000 or more annually in taxable sales.
• Register for an HST account with the CRA.
• Obtain your Business Number (BN) and HST account number (Format: 123456789 RT 0001).

2. Collection

Charge 14% HST on taxable goods and services in Nova Scotia. Also, ensure HST is clearly shown on invoices and receipts, including:

• Sale subtotal
• HST amount (14%)
• Total amount payable
• Your CRA HST number

Also, keep track of HST collected (Output Tax).

3. Filing & Remittance

Know your filing frequency based on annual taxable revenue:

• Monthly: Over $6 million
• Quarterly: $1.5 million to $6 million
• Annually: Under $1.5 million

File HST returns on time via CRA My Business Account (online), Mail (using CRA form), or through a tax professional. Then, remit the net HST owing (HST collected minus Input Tax Credits). Ensure all payments are made by the due date to avoid penalties.

Nova Scotia Sales Tax Quick Compliance Tips

Here are some practical tips for compliance.

1. Keep records of all sales and purchase invoices, HST collected and remitted, Input Tax Credits (ITCs) claimed, and filed HST returns. Retain records for at least six years.
2. Reconcile your HST accounts regularly.
3. Stay updated on Nova Scotia’s HST rules and exemptions.
4. Use sales tax automation tools like Kintsugi to simplify HST calculation, filing, and record-keeping.

Nova Scotia Sales Tax FAQs

What is the sales tax in Nova Scotia?

Nova Scotia applies a Harmonized Sales Tax (HST) on most goods and services.

How much is sales tax in Nova Scotia?

The sales tax in Nova Scotia is 14% (effective April 1, 2025).

How do tax sales work in Nova Scotia?

Businesses charge 14% HST at the point of sale, collect it from customers, and remit it to the Canada Revenue Agency (CRA).

Is there a 14% tax in Nova Scotia?

Yes, Nova Scotia’s HST rate is 14% as of April 1, 2025.

Is it GST or HST in Nova Scotia?

Nova Scotia uses the Harmonized Sales Tax (HST), which combines the 5% federal GST and 9% provincial tax.

What is the province tax in Nova Scotia?

The provincial portion of the HST in Nova Scotia is 9%.

Nova Scotia Sales Tax Key Points

• Nova Scotia uses the Harmonized Sales Tax (HST) system, combining the federal GST (5%) and the provincial portion (9%), for a total tax rate of 14%.
• HST applies to most goods and services, including retail sales, professional services, digital products, and accommodation, with some exemptions and zero-rated items like groceries, prescription drugs, and residential rent.
• Businesses must register with the Canada Revenue Agency (CRA) to collect and remit HST if they exceed $30,000 in annual taxable sales.
• HST returns are filed with the CRA, and businesses can claim Input Tax Credits (ITCs) to recover HST paid on business expenses.

Next Steps & Essential Resources

Learn more about Nova Scotia sales tax by visiting the following websites:

• Canada Revenue Agency (CRA)
• Nova Scotia Finance and Treasury Board

You do not need to go through all the hassles and confusion to keep your business compliant. Let Kintsugi handle your Nova Scotia HST, so you can focus on your business growth.

Kintsugi accurately categorizes and calculates sales tax, organizes detailed records, easy to use, and seamlessly integrates with e-commerce systems. Book a demo or sign up today to experience the power of Kintsugi.