As Canadians, you’ll pay income taxes to maintain the country’s government services and programs. Those taxes affect your gross annual income. In reality, you may not be taking as much money home from your job, business or side hustle as you think. To calculate your actual take-home pay, you need to know your gross annual and associated contributions you need to make.
However, your take-home pay also fluctuates according to where you live, which means you’ll have to adjust your calculations to accommodate your federal and provincial income taxes. For instance, here’s how to calculate your salary in Nova Scotia.
How To Calculate Your Take-Home Pay As A Resident Of Nova Scotia
In Nova Scotia, the amount of tax that you pay on your gross annual salary depends on your federal and provincial tax rates. You can calculate your net salary (take-home pay) by subtracting your federal taxes, provincial taxes, and other deductions from your gross annual (pre-tax) salary:
| Net Salary Calculation | Gross Salary − Taxes (provincial and federal) − CPP − EI |
Deductions That Can Affect Your Net Salary In Nova Scotia
Besides your federal and provincial taxes, the government also deducts a portion of your pay for CPP and EI:
Canada Pension Plan (CPP)
The CPP is a social insurance program that’s administered by the federal government. You have to contribute to it whenever you’re working and, in exchange, the program gives you:
- A regular source of income after you retire
- Disability benefits
- Death and survivor benefits
Employment Insurance
EI is a contribution program that gives you temporary financial assistance if you’re unable to work for valid reasons, such as:
- Loss of employment (without fault)
- Serious illness
- Pregnancy
- Caring for a family member with an illness
- Parental benefits
How Much Will You Pay In Taxes In Nova Scotia
While your federal taxes are the largest portion of your yearly income taxes in Nova Scotia, you must factor in your provincial taxes too. Here are the tax rates you’ll have to pay as a resident of Nova Scotia (which vary according to your tax bracket and gross annual income):
Federal Tax Rates
| Federal Tax Rate | Federal Income Tax Brackets |
| 15% | Applicable to taxable income up to $55,867 |
| 20.5% | Applicable to taxable income over $55,867 up to $111,733 |
| 26% | Applicable to taxable income over $111,733 up to $173,205 |
| 29% | Applicable to taxable income over $173,205 up to $246,752 |
| 33% | Applicable to taxable income over $246,752 |
Nova Scotia Tax Rates
| Nova Scotia Tax Rate | Nova Scotia Income Tax Brackets |
| 8.79% | Applicable to taxable income up to $29,590 |
| 14.95% | Applicable to taxable income over $29,590 up to $59,180 |
| 16.67% | Applicable to taxable income over $59,180 up to $93,000 |
| 17.5% | Applicable to taxable income over $93,000 up to $150,000 |
| 21% | Applicable to taxable income over $150,000 |
How Much Income Will You Take Home In Nova Scotia After Taxes?
As mentioned, your provincial income taxes vary according to your province or territory. Here’s a more detailed chart to show what you could pay in taxes in Nova Scotia and what your take-home pay would be:
| Federal Tax Deduction | Nova Scotia Tax Deduction | CPP Deduction | EI Deduction | Net Pay | |
| $45,000 | $6,100 | $4,635 | $2,365 | $710 | $31,190 |
| $65,000 | $9,700 | $7,605 | $3,500 | $955 | $43,240 |
| $95,000 | $15,855 | $12,620 | $3,500 | $955 | $62,070 |
| $150,000 | $29,855 | $22,245 | $3,500 | $955 | $93,445 |
Tax Credits That Can Affect Your Income Taxes In Nova Scotia
Most provincial governments offer a variety of refundable and non-refundable tax credits that can affect the amount of taxes you pay from year to year. Although many federal tax credits are available too, here are some that are specific to Nova Scotia:
The Poverty Reduction Credit (PRC)
If you’re single or in a common-law partnership, one person in your household can get a yearly payment of up to $500. You don’t have to apply for this credit, as it’s based on your tax return from the previous year. To qualify for The Poverty Reduction Credit, you must:
- Have NO children
- Be receiving social assistance
- Be earning less than $16,000 annually
The Affordable Living Tax Credit (ALTC)
Similar to the PRC, the ALTC provides a quarterly payment to eligible low-income earners and their families. As an individual or couple, you can get a base amount of $255/yearly and $60/year for each child you have. If your family income is over $30,000, your benefit amount will be reduced by $0.05 for every dollar you have over the income threshold.
Interested in information about the Nova Scotia Disability Support Program?
The Nova Scotia Child Credit
The NSCB is a provincial credit you can get in addition to the Canada Child Benefit (CCB). Families with adjusted net incomes of less than $26,000 can receive $1,275 annually for every child they have. If a family’s income is between $26,000 and $34,000, you may get a lower amount.
Labour-Sponsored Venture-Capital Tax Credit
This credit offers a personal income tax credit to individuals who are investing in registered labour-sponsored venture-capital corporations (LSVCC). It helps small and medium businesses and co-operatives get equity financing, to a maximum credit of $2,000 annually.
Other tax deductions
The following deductions can help reduce your total income and thus your income taxed owed.
- Childcare costs
- Moving costs
- Registered Retirement Savings Plan (RRSP) contributions (self-made)
- Registered Pension Plan (RPP) contributions (through your employer)
- Professional expenses or union dues
Take-Home Pay Across Canada
- Calculate Your Take-Home Pay In Nova Scotia
- Calculate Your Take-Home Pay In PEI
- Calculate Your Take-Home Pay In Saskatchewan
- Calculate Your Take-Home Pay In Newfoundland and Labrador
- Calculate Your Take-Home Pay In Alberta
- Calculate Your Take-Home Pay In British Columbia
- Calculate Your Take-Home Pay In Ontario
Minimum Wage Rate In Nova Scotia
At the moment, the minimum wage is $13.60 an hour. So, if you work a standard job that offers you 40 hours a week and 50 weeks a year, you should earn a gross annual income of $27,200 before taxes.
Average Salary In Nova Scotia
As of the 2020 tax year, the average income for Nova Scotia residents aged 16 and over is $45,900 and the median income is $37,100.
Are You A Taxpayer In Nova Scotia?
Then make sure to speak with your accountant and get your finances in order, because tax season is right around the corner. Remember, paying your income taxes is a tedious but essential part of your duties as a Nova Scotia resident.
Take-Home Pay In Nova Scotia FAQs
What is the main difference between your take-home pay and your gross pay?
What will my net salary be if I make $62,000 a year in Nova Scotia?
What’s the benefit of knowing your gross and net pay?
- Determine the amount of income that you actually make after taxes
- Budget for your general living costs (rent/mortgage, groceries, etc.)
- Compare employment offers and negotiate salaries when applying for jobs
- Ask for a raise at your current job
