Atlantic Canada tax facts for corporations
Reviewed by EverStone CPA · July 2026
Nova Scotia, New Brunswick, Prince Edward Island and Newfoundland and Labrador all use HST — but not the same rate, not the same corporate rates, and not the same business limits. Four provinces side by side, with the source under each table.
Quick answer: All four Atlantic provinces use a harmonised sales tax — 14% in Nova Scotia and 15% in New Brunswick, Prince Edward Island and Newfoundland and Labrador. Provincial corporate rates and business limits differ in every one of the four, and only Newfoundland and Labrador levies a payroll tax.
Four provinces, four different sets of numbers
The region is often treated as one market, but its corporate tax parameters have diverged sharply since 2024. Combined rates below add the federal net rates of 9% and 15%.
| Province | Lower rate | Combined lower | Higher rate | Combined higher | Business limit |
|---|---|---|---|---|---|
| Nova Scotia | 1.5% | 10.5% | 14% | 29% | $700,000 |
| New Brunswick | 2.5% | 11.5% | 14% | 29% | $500,000 |
| Prince Edward Island | 1% | 10% | 15% | 30% | $600,000 |
| Newfoundland and Labrador | 2.5% | 11.5% | 15% | 30% | $500,000 |
Provincial rates and business limits per the Canada Revenue Agency Corporation tax rates table; combined figures add the federal net rates of 9% and 15% from the same page. Retrieved 31 July 2026. Per the CRA’s footnotes: Nova Scotia’s lower rate fell from 2.5% and its limit rose from $500,000, both effective 1 April 2025; Prince Edward Island’s higher rate fell from 16% and its limit rose from $500,000, both effective 1 July 2025; Newfoundland and Labrador’s lower rate fell from 3% effective 1 January 2024.
Nova Scotia’s $700,000 limit is the highest in the country, but the federal small business deduction still runs on the federal $500,000 limit — a higher provincial limit changes the provincial layer only.
All harmonised — but Nova Scotia is no longer 15%
Every Atlantic province harmonised its provincial sales tax with the GST, so businesses hold one registration and file one return. The regional rate stopped being uniform on 1 April 2025, when Nova Scotia’s HST decreased to 14%.
| Province | HST rate | Separate PST | Administered by |
|---|---|---|---|
| Nova Scotia | 14% | None | Canada Revenue Agency |
| New Brunswick | 15% | None | Canada Revenue Agency |
| Prince Edward Island | 15% | None | Canada Revenue Agency |
| Newfoundland and Labrador | 15% | None | Canada Revenue Agency |
Per the Canada Revenue Agency GST/HST rates by province table, which records the Nova Scotia decrease to 14% as of 1 April 2025 and lists no separate PST in any of the four. Retrieved 31 July 2026.
One payroll tax in the region, and four compensation boards
Only Newfoundland and Labrador charges an employer payroll tax. Its Health and Post Secondary Education Tax applies at 2% on annual remuneration above the exemption threshold, which rose to $2 million effective 1 January 2023. The other three levy nothing equivalent.
| Province | Provincial payroll tax | Workers’ compensation authority |
|---|---|---|
| Nova Scotia | None | Workers’ Compensation Board of Nova Scotia |
| New Brunswick | None | WorkSafeNB |
| Prince Edward Island | None | Workers Compensation Board of Prince Edward Island |
| Newfoundland and Labrador | 2% above a $2,000,000 exemption threshold | WorkplaceNL |
Payroll tax rate and threshold per the Government of Newfoundland and Labrador, Health and Post Secondary Education Tax (Payroll Tax); associated employers and partnerships must file an allocation agreement to share the threshold. Retrieved 31 July 2026.
Four registries, four names for roughly the same filing
| Province | Registry | Annual filing |
|---|---|---|
| Nova Scotia | Registry of Joint Stock Companies | Annual renewal of registration, with a renewal fee |
| New Brunswick | Corporate Registry of New Brunswick | Provincial annual return (extra-provincial return where applicable) |
| Prince Edward Island | Online Corporate and Business Registry (OCBR) | Annual return, submitted through the OCBR |
| Newfoundland and Labrador | Registry of Companies | Annual return |
Per Government of Nova Scotia, Registry of Joint Stock Companies; Service New Brunswick, Corporate Registry; Government of Prince Edward Island, Online Corporate and Business Registry; and Government of Newfoundland and Labrador, Registry of Companies. Retrieved 31 July 2026. Individual filing due dates are set per corporation and are not reproduced here — confirm yours with the relevant registry.
None of these filings go to the CRA, so a clean federal record says nothing about whether a company is in good standing at home. Our tax deadline calendar covers the federal cycle they sit alongside.
Compare with other provinces
Same tables, different province.
Atlantic Canada tax facts FAQ
Is the HST rate the same across Atlantic Canada?+
Which Atlantic province has the highest small business limit?+
What are the combined small-business rates in the four provinces?+
Does a higher provincial business limit increase my federal small business deduction?+
Which Atlantic province charges an employer payroll tax?+
What does a Nova Scotia company file each year?+
How current are the figures on this page?+
Incorporated in Atlantic Canada?
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