Effective April 1, 2025, the province of Nova Scotia will lower its harmonized sales tax (HST) rate by 1% to 14%, according to Nova Scotia Finance and Treasury Board news release titled "Nova Scotia’s HST to Drop in 2025" released on 23^rd of October 2024. For the past 14 years, the current 15% HST rate has remained steady. The federal portion, which equals to 5%, and the provincial portion, which will drop from 10% to 9% when this rate change takes effect, makes up the Nova Scotia HST rate. The total Nova Scotia HST Rate is the sum of the federal and the provincial components.

With an estimated $2.7 billion and 17.1% of total revenues for the province in 2024, HST is the province's second-largest revenue source (after personal income tax). Lower-income earners who receive the affordable living tax credit will continue to receive the same amount of support.

The news release contained very little information about the announced HST rate decrease. Transitional rules that will govern this rate reduction has not been announced yet, while any taxable supply made in Nova Scotia on or after April 1, 2025, will be subject to the new HST rate of 14%.