Nova Scotia Education & Student Credits (2025 Guide)

Nova Scotia Tuition & Education Credits

Nova Scotia Tuition Amount: Nova Scotia continues to offer a provincial tuition tax credit, which is a non-refundable credit for eligible tuition paid to a designated post-secondary institution. The credit reduces your Nova Scotia taxes payable and is fully stackable with the federal tuition tax credit.

• Eligibility: Paid $100+ in tuition to a recognized post-secondary institution (university, college, trade school, etc.) in or outside NS, for yourself or transferred from a dependent. Both full-time and part-time students qualify if enrolled in at least a 3-week course. For eligibility details, see Canada Tuition Credits.
• Claim on Schedule NS(S11) of your Nova Scotia tax return. Federal tuition credit is claimed on Schedule 11.
• You cannot claim student association fees, books, residence, meals, or transportation.
• Education and textbook amounts (legacy): Nova Scotia eliminated these credits after 2016, but any unused amounts from prior years can still be carried forward.
• Both the student and an eligible parent/grandparent/spouse (via transfer) can use the credit. See below for transfer/carryforward.

Calculation Example: If you paid $7,000 in tuition to Dalhousie, you claim $7,000 on both the NS(S11) and federal Schedule 11 forms. This will reduce both your Nova Scotia and federal tax owing (actual tax reduction depends on your income and other credits).

Step-by-Step Claim Process:

1. Receive a T2202 from your institution (shows eligible tuition and months).
2. Complete NS(S11) for provincial and Schedule 11 for federal claims.
3. Claim the credit on your tax return (use tax software or forms).
4. If transferring, complete the transfer section and sign for the transferee.

Nova Scotia Student Assistance: Loans & Grants

Nova Scotia Student Assistance combines provincial and federal loans and grants for full- and part-time students. Apply through the Nova Scotia Student Assistance portal. Key points:

• Eligibility: Nova Scotia resident, enrolled in a recognized post-secondary program, demonstrating financial need. Out-of-province students may qualify if NS is their home province.
• One application covers both Nova Scotia and Canada loans/grants. You must provide proof of enrollment, income, and program details.
• Grants (non-repayable) are not taxable if you are a full-time student. Student loans are not taxable income; only forgiveness or certain benefits may be taxable.
• NS Student Assistance includes needs-based and merit-based grants, as well as special supports for students with dependents, disabilities, or Indigenous status. See NS Disability Credits.

Step-by-Step Application:

1. Apply online at Nova Scotia Student Assistance.
2. Submit required documents: proof of income, T2202, acceptance/enrollment letter.
3. Monitor your application status and respond to any requests for info.
4. Accept/decline loan and grant offers online; funds are deposited to your account or sent to your school.

Student Loan Interest Tax Credit

Student Loan Interest Credit: You can claim a non-refundable tax credit for interest paid on eligible Canada and Nova Scotia student loans. This applies only to official government student loans (not private lines of credit).

• Eligibility: Paid interest on a Canada/Nova Scotia government student loan (not a non-government or bank LOC). Only the student (not parents) can claim the interest, even if someone else paid it.
• Claim interest on line 31900 (federal) and the corresponding Nova Scotia line on your tax return.
• Unused interest credits can be carried forward for up to 5 years.

Step-by-Step Claim:

1. Obtain annual interest statement from your loan provider (NS or Canada Student Loans).
2. Claim the amount on your tax return (line 31900 and NS line).
3. Carry forward unused credit for up to 5 years if you have no tax owing.

Example: You paid $400 in interest on your Nova Scotia student loan in 2024. You have no tax owing, so you carry it forward to 2025 and claim it then when you have a tax bill.

Scholarships, Bursaries & Grants: Tax-Free Rules

Scholarships, bursaries, and grants for post-secondary study are generally not taxable if you are a full-time student. For part-time students, the exemption applies up to the cost of tuition, fees, and program-related expenses. Report all amounts shown on your T4A slip, but claim the exemption as allowed.

• Eligibility: Received a scholarship, bursary, or grant (including NS Student Assistance grants) for post-secondary study.
• Include all scholarships/bursaries on line 13010 of your federal return, and claim the tax-free exemption if eligible.
• NS Student Assistance grants are not taxable. Prizes or non-educational awards may be taxable—check your T4A slip for details.

Step-by-Step:

1. Report all scholarship/bursary amounts from your T4A.
2. Claim the exemption for full-time students (line 13010 instructions).
3. Retain documentation for audit.

Transferring & Carrying Forward Tuition Credits

• Transfer: Up to $5,000 of the current year’s tuition amount can be transferred to a parent, grandparent, spouse, or common-law partner (federal and Nova Scotia credit). Complete the transfer section on your T2202 and have the student sign.
• Carryforward: Any unused tuition amount (after transfer/use) can be carried forward indefinitely by the student. These credits will show on your Notice of Assessment.
• Order: Use tuition to reduce your own tax to zero, then transfer/carry forward the rest. Carryforward can only be used by the student, not transferred later.

Example: You paid $7,000 in tuition, used $1,000 to reduce your own tax, transferred $5,000 to a parent, and carried forward the remaining $1,000 for next year.

Practical Scenarios & Calculation Examples

• Scenario 1 - Undergraduate Student: Andrew is a full-time student at Saint Mary’s University. He pays $8,500 in tuition, receives $2,000 in scholarships, and pays $200 in student loan interest. Andrew has $0 tax owing this year, so he carries forward his tuition and loan interest. Next year, with a co-op job, he claims the carryforward tuition/interest and gets a refund.
• Scenario 2 - Transfer to Parent: Emma, a first-year Dalhousie student, pays $6,000 tuition. She earns $3,000 at a summer job. She claims enough tuition to reduce her tax to zero, then transfers $5,000 to her mother, who uses it to reduce her own NS and federal taxes.
• Scenario 3 - Student with Disability: Marcus, a student with a disability, receives both NS Student Assistance and the federal Canada Student Grant for students with disabilities. He claims tuition, is eligible for the Disability Tax Credit, and uses the NS Disability Credits to maximize his refund.

Audit Risk, Common Errors & Best Practices for Documentation

• Keep all documentation: T2202 certificates, loan interest statements, scholarship/bursary T4A slips, receipts for moving expenses, and proof of enrollment should be kept for at least 6 years.
• Common errors: Failing to sign the transfer section, double-claiming tuition (parent and student), including ineligible fees (books, residence), and not reporting scholarships properly.
• Audit triggers: Large tuition/credit claims, missing T2202, or claims inconsistent with program records may result in CRA review or audit.
• Best practices:
  • Use certified tax software to minimize errors.
  • Double-check transfer/carryforward calculations.
  • If you miss a claim, file a T1-ADJ or use ReFILE for up to 10 years back.
  • For complex cases (co-op, moving, disability), seek advice from a tax pro.

Frequently Asked Questions: Nova Scotia Education Credits

Related Nova Scotia & Canada Student Tax Resources

• Nova Scotia Individual Tax Breaks Directory
• Tuition & Education Credits (Canada-wide)
• Canada-Wide Individual Credits
• Nova Scotia Student Assistance (Official)
• Canada Education Benefits

For a full list of Nova Scotia and federal student programs, visit the official Nova Scotia Student Assistance and Canada Education Benefits portals.