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Raise Low-Income Tax Threshold to $15,000

Full Title:
Income Tax Act (amended)

Summary#

  • This bill raises a key dollar amount in Nova Scotia’s personal income tax law from $11,744 to $15,000.

  • That amount is used to figure out how much provincial income tax people with lower incomes owe.

  • Raising it means more income is shielded from provincial tax at the low end.

  • Key changes:

    • Replaces $11,744 with $15,000 in the Income Tax Act.
    • Increases the income level that is tax-free or reduced for low-income taxpayers.
    • More low‑income residents will owe no provincial tax; others near that level will owe less.
    • Tax rates do not change; only the threshold amount changes.

What it means for you#

  • Workers and students with modest earnings:

    • If your income is around $15,000 or below, you may now owe no Nova Scotia income tax.
    • If you earn slightly more than $15,000, your provincial tax bill should be smaller than before.

  • Seniors with small pensions and part‑time workers:

    • You could see little or no provincial income tax if your annual income is near $15,000.

  • Middle- and higher‑income taxpayers:

    • Little or no change unless your income is close to $15,000.

  • Employers and payroll staff:

    • Employees with low earnings may have less provincial tax withheld from each pay.

Expenses#

  • At a glance: Would reduce provincial income tax revenue; no official cost estimate has been published.

  • The size of the revenue drop depends on how many taxpayers have incomes near $15,000 and how the change interacts with other credits.

Proponents' View#

  • Helps with the cost of living by letting low‑income people keep more of what they earn.
  • Reduces or removes provincial income tax for more residents with modest incomes.
  • Encourages work by lowering tax on the first dollars people earn.
  • Simple to apply because it uses an existing part of the tax system.

Opponents' View#

  • Cuts provincial revenue, which could pressure funding for health care, education, and other services.
  • The tax savings per person may be small; some argue the money could help more if aimed at targeted supports.
  • People who already pay no income tax (very low income or non‑filers) may see no benefit.
  • May add confusion if it interacts with other credits and thresholds in ways that are hard to understand.