HALIFAX: The Canadian Federation of independent business (CFIB) is pleased that the Government of Nova Scotia has followed through on promised changes to the Small Business Tax Rate in Budget 2025-26.
The change, announced Feb. 18 as part of Budget 2025-26, will reduce the rate from 2.5% to 1.5% and increase the eligibility threshold from $500,000 of income to $700,000.
“The 2025-2026 Budget is good news for small businesses. CFIB has been leading the charge calling on government to reduce the small business tax rate, and today’s announcement represents a win for small businesses in our province,” said Duncan Robertson, Director of Legislative Affairs for Nova Scotia at the Canadian Federation of Independent Business.
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As a result of these changes, Nova Scotia will now be tied for the third lowest small business tax rate and will have the highest eligibility in Canada, saving 19,000 businesses $47 million, according to government estimates.
“We know these changes will go right back into our community, two in three small businesses would put these savings toward attracting and retaining labour, while one in two would pay down pandemic debt, and consider expanding,” Robertson added.
In addition, the Nova Scotia Government also announced it would set aside a $200 million contingency to mitigate the impact potential tariffs could have on the province’s economy.
“While it is positive to see the province prepare for possible tariffs, the province should detail how this fund would be used, particularly how it would support smaller businesses,” said Robertson.
