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If you run a business in Atlantic Canada, the big accounting fact is HST: 15% in New Brunswick, Newfoundland and Labrador and Prince Edward Island, and 14% in Nova Scotia since 1 April 2025. One registration covers the federal and provincial parts, and you file one return. That’s simpler than Saskatchewan or Manitoba, where you deal with two taxes.
How much HST do you charge down east?
The CRA lists Nova Scotia at 14% after the provincial part fell from 10% to 9%. Our rate table, built from the CRA’s rate information, has the other three at 15%. Here’s a $1,000 sale in each, from the GST/HST calculator.
| Province | HST rate | Tax on $1,000 | Invoice total |
|---|---|---|---|
| New Brunswick | 15% | $150 | $1,150 |
| Newfoundland and Labrador | 15% | $150 | $1,150 |
| Prince Edward Island | 15% | $150 | $1,150 |
| Nova Scotia | 14% | $140 | $1,140 |
The Nova Scotia cut has transitional rules. Anything invoiced or paid before the change may still carry 15%, and real property depends on when ownership and possession both pass. The CRA points to two notices on this, GST/HST Notices 342 and 343. If you sold or billed around April 2025, read them before you amend anything.
Working backwards from a receipt? The reverse HST calculator pulls the tax out of a total.
What corporate tax rates apply for a small company?
Two of the four provinces are clear on the CRA pages. The other two pages are behind the news, and we’d rather say so than guess.
| Province | Lower rate | Higher rate | Limit | Status |
|---|---|---|---|---|
| New Brunswick | 2.5% | 14% | $500,000 | CRA page, May 2025 |
| Nova Scotia | 1.5% | 14% | $700,000 | CRA page, from 1 April 2025 |
| Newfoundland and Labrador | 2.5% on the CRA page | 15% | Not on page | Province has announced a cut, confirm |
| Prince Edward Island | 1% | 16% on the CRA page | Not on page | CRA notes announced changes, confirm |
Both Newfoundland and Labrador and Prince Edward Island have announced changes that their CRA pages don’t show yet. Our working data has Newfoundland and Labrador’s lower rate at 2% from 1 January 2026, and PEI’s higher rate at 15% with a $600,000 limit from 1 July 2025. Those come from secondary summaries, so check the province’s own finance page before you book them.
What does $300,000 of profit cost in tax?
For a Canadian-controlled private corporation with $300,000 of active business income, the corporate tax calculator gives $31,500 in Nova Scotia and $34,500 in New Brunswick. Both include $27,000 of federal tax at the 9% small business rate. The provincial slice is $4,500 in Nova Scotia and $7,500 in New Brunswick.
That’s $3,000 a year between two neighbours on identical profit. It’s a reason to read a province’s budget before you decide where to incorporate, not a reason to move a head office. The calculator doesn’t model credits and covers associated companies and passive income only through optional boxes, so your actual bill can differ.
How does business accounting in Atlantic Canada handle payroll and filing?
Payroll is federal in all four provinces. You withhold income tax, CPP and EI and remit to the CRA. The payroll remittance calculator shows what that looks like. For one employee on $3,000 every two weeks in Nova Scotia, the total to send is about $1,104 a pay period, including your own share. Provincial income tax is the only part that changes with the province.
The CRA says most GST/HST registrants must now file electronically, through your CRA account or the NETFILE form. Get your online account working before your first due date, not on it.
Seasonal businesses should watch one thing. Fishing, tourism and farming income arrives in lumps, but HST is due on the reporting period you’ve registered for. Put a slice of each deposit aside as you go, or a good summer can leave you short on the day the return is due.
What mistakes do Atlantic businesses make most?
Using the wrong Nova Scotia rate on old invoices is the obvious one. Next is assuming a cheap provincial rate means a cheap bill, when the limit and the federal tax change the picture. Then there’s the records rule. The CRA wants books kept in Canada for six years after the year they cover, in a format it can read. A cloud tool whose servers sit abroad is worth a question to the provider.
And one limit of our own: we haven’t confirmed provincial payroll levies or workers’ compensation rates, so none are quoted here.
Where the numbers come from
The Canada Revenue Agency’s provincial corporation tax pages for New Brunswick (updated May 2025), Nova Scotia (updated March 2026), Newfoundland and Labrador (updated May 2026) and Prince Edward Island (updated May 2025) supply the rates in the table. HST rates and the Nova Scotia change come from the CRA’s GST/HST rate information. The record and electronic filing points come from CRA guidance published in 2026.
Frequently asked questions
What is the HST rate in Atlantic Canada?
It is 15% in New Brunswick, Newfoundland and Labrador and Prince Edward Island. Nova Scotia dropped to 14% on 1 April 2025.
Which Atlantic province has the lowest small business rate on the CRA pages?
Prince Edward Island shows 1% and Nova Scotia 1.5%, but the PEI page says changes were announced. Confirm with the province.
Do I file separate HST and GST returns?
No. HST provinces use one registration and one return that covers both the federal and provincial parts.
How long should I keep business records?
Six years after the end of the year they relate to, kept in Canada unless the CRA permits otherwise.
Is payroll different in Atlantic Canada?
The withholding system is the CRA's everywhere outside Quebec. Only the provincial income tax part changes.
All family and benefits calculators
- Self-employed taxes in Canada: income, CPP and GST
How tax works when you are self-employed in Canada: reporting income and expenses, paying both halves of CPP, instalments and when to register for GST
Information only. This page is general information, not tax, legal or accounting advice. Tax-Services.ca is an independent publisher: we don't prepare or file tax returns or offer tax services, and we have no connection with the CRA, Revenu Québec, any government or any company named on this page. Check the figures that matter with an official source or a qualified professional.