Nova Scotia to Cut HST Rate in 2025

Effective April 1, 2025, the province of Nova Scotia will reduce its Harmonized Sales Tax (HST) rate from 15% to 14%. This marks the first adjustment to HST rates in Canada since 2016, and offers potential cost-saving opportunities for both consumers and businesses operating in or selling to this province.

Overview: GST/HST Structure in Canada

Canada has a complex consumption tax system, which combines federal and provincial components. Here's a summary of GST/HST rates by province and territory as of May 2025:

Province/Territory Federal GST/HST Provincial Tax (PST/QST/RST) Total Rate

Ontario HST 13% Included in HST (PST 8%) 13%

New Brunswick HST 15% Included in HST (PST 10%) 15%

Newfoundland and Labrador HST 15% Included in HST (PST 10%) 15%

Nova Scotia HST 14% Included in HST (PST 9%) 14%

Prince Edward Island HST 15% Included in HST (PST 10%) 15%

Quebec GST 5% QST 9.975% 14.975%

British Columbia GST 5% PST 7% 12%

Manitoba GST 5% RST 7% 12%

Saskatchewan GST 5% PST 6% 11%

Alberta GST 5% None 5%

Northwest Territories GST 5% None 5%

Nunavut GST 5% None 5%

Yukon GST 5% None 5%

Transition Rules for the New 14% HST Rate in Nova Scotia

To ensure a smooth transition, the Canada Revenue Agency (CRA) has published detailed guidelines for businesses affected by the rate change. The 14% HST rate will apply in the following scenarios:

The goods are delivered on or after April 1, 2025;

Payment is made or becomes due on or after April 1, 2025;

Even if goods are sold before April 1, the new rate still applies if payment occurs after April 1.

Amazon sellers, for example, can monitor applicable tax rates directly in their sales reports, ensuring accurate tax treatment for each transaction.

What This Means for Cross-Border Sellers

While Nova Scotia is currently the only province reducing its HST rate, it could signal a broader trend, especially as provinces respond to economic pressures and political dynamics. Other provinces may reassess their tax policies in the near future.

Cross-border e-commerce businesses should closely monitor these developments and adjust their tax configurations and pricing strategies accordingly. Proactive compliance and tax optimization can offer both competitive advantages and risk mitigation.

Need Help Navigating GST/HST Compliance?

If you operate a cross-border business and need assistance understanding the GST/HST framework across Canadian provinces, or wish to receive tailored tax strategy recommendations, our professional team is here to support you. We offer end-to-end compliance and advisory services to help your business thrive in the Canadian market.

Let us help you stay compliant and competitive—contact us today for a personalized consultation.