Nova Scotians facing major tax hikes in 2024: New Year’s Tax Changes report

The Canadian Taxpayers Federation released its annual New Year’s Tax Changes report today. The report shows that Premier Tim Houston is set to increase taxes on Nova Scotians of every income level. 

“Nova Scotians are getting hammered with income tax hikes because Houston is refusing to end his stealthy tax hike called bracket creep,” said CTF Interim Atlantic Director Jay Goldberg. “A Nova Scotia taxpayer earning $30,000 is effectively facing a $134 tax hike because Houston refuses to index tax rates to the rate of inflation.”

Bracket creep occurs when governments don’t move tax brackets with inflation and inflation pushes taxpayers into higher tax brackets even though they can’t afford to buy more. Nova Scotia is the only government in Canada that’s not adjusting tax brackets.

The report also outlines six tax hikes that Nova Scotians will be facing at the federal level.

• Canada Pension Plan tax: Workers earning $68,500 or more will pay an extra $133 through the Canada Pension Plan payroll tax in 2024. Their employers will also pay an extra $133.
• Payroll tax: payroll taxes will increase by up to $347 depending on income.
• Employment Insurance tax: Workers earning $63,200 or more will pay an extra $47 through the Employment Insurance payroll tax in 2024. Their employers will pay an extra $65. 
• Carbon tax: The federal carbon tax is increasing on April 1, 2024. The price per tonne will increase from $65 to $80 and the cost per litre at the gas pump will rise from 14.3 cents to 17.6 cents.
• Second carbon tax: The federal government’s second carbon tax is expected to increase the price of gas through fuel regulations by up to 17 cents per litre and cost the average household between $384 and $1,157 by 2030, according to the PBO.
• Liquor escalator tax: The federal liquor escalator tax will increase liquor taxes by 4.7 per cent on April 1, 2024. Taxes already account for about half of the price of beer, 65 per cent of the price of wine and more than three quarters of the price of spirits. 

“Other countries are cutting taxes, but Ottawa is sticking Canadians with higher bills,” Goldberg said. “Prime Minister Justin Trudeau needs to stop wasting so much money and cut taxes.”

You can read the CTF’s New Year’s Tax Changes report here.