All the Numbers

Income tax in Newfoundland and Labrador

From the All the Numbers wiki · Tax

A Newfoundland and Labrador resident's provincial tax is worked out on the NL428, attached to the federal return.

The rules (2026)

Eight brackets: 8.7% up to $44,678, 14.5% to $89,354, 15.8% to $159,528, 17.8% to $223,340, 19.8% to $285,319, 20.8% to $570,638, 21.3% to $1,141,275 and 21.8% above.[1] Credits are taken at 8.7%.

  • Basic personal amount: $13,094, written in the statute for 2026.[2] The 2026 budget announced a higher amount; the plan uses what the law says.
  • Spouse or eligible dependant: $9,142 while the dependant's net income is $915 or less, then less each dollar above it, nil at $10,057.[3][4][5]
  • Age amount: $7,142 at 65 or over, less 15% of net income above $39,138.[6]
  • Pension amount: $1,000.[7] CPP and EI are credited as federally.[8]
  • Dividends: 6.3% (eligible) and 3.2% (other) of the grossed-up dividend.[9][10]
  • Minimum tax: 62.1% of the federal additional tax: the province's lowest rate over the federal one.[11] Foreign tax is credited on the T2036.[12]

There is no surtax, no health premium and no deficit levy.

The low income reduction

$842 for the person and $563 for a spouse or eligible dependant, less 16% of family income over $24,191 for a person alone, or $40,905 with a spouse or dependant. It comes off last.[13] The 2026 thresholds are worked out from 2025's until the 2026 return is published. A couple claims it once; the plan gives it to the spouse with the higher income and does not pass on a part that spouse cannot use.[14]

After 2026

The province indexes its brackets, credit amounts and the reduction's thresholds by its own price index. The basic amount is held for 2026 and indexed from 2027; the pension amount is fixed.[15] The pension amount grows with the plan's rate by default and stays at its dollars if the plan is set to the law as written. See tax brackets after 2026.

What it does not do

The NL Disability Benefit, the Home Heating Supplement and the physical activity and other credits are not modelled. See also Newfoundland and Labrador benefits.

See also

  • Newfoundland and Labrador benefits · Newfoundland and Labrador pays a child benefit and a nutrition supplement with the CCB, and an income supplement and seniors' benefit every quarter.
  • Tax brackets after 2026 are projected, not published · Every year after 2026 is taxed with the 2026 brackets, personal amounts, credits and CPP/EI ceilings grown at the plan's inflation rate. That is how CRA indexes them, but the real figures are announced each fall and will differ.

References

  1. ↑gov.nl.ca — Personal Income Tax, 2026: "8.7% first $44,678; 14.5% over $44,678 up to $89,354; 15.8% … up to $159,528; 17.8% … up to $223,340; 19.8% … up to $285,319; 20.8% … up to $570,638; 21.3% … up to $1,141,275; 21.8% over $1,141,275" · Newfoundland and Labrador personal income tax brackets and rates · See the source · effective 2026-01-01
  2. ↑Income Tax Act, 2000 (NL) s.9(1)(c): "$13,094" (2026 c14 s1); TD1NL 2026 line 1: "13,094". Budget 2026 announced $15,000; not enacted at retrieval · Newfoundland and Labrador basic personal amount · $13,094 · effective 2026-01-01
  3. ↑CRA TD1NL 2026, lines 6–7: "Enter $9,142 if … net income for the year will be $915 or less … a partial amount if … between $915 and $10,057" · Newfoundland and Labrador spouse or eligible dependant amount, in full while the dependant's income is at or below the threshold · $9,142 · effective 2026-01-01
  4. ↑CRA TD1NL 2026, lines 6–7: "$915 or less" (s.9(1)(a)'s $606 indexed) · Newfoundland and Labrador spouse or eligible dependant amount: reduced dollar for dollar by the dependant's income above this · $915 · effective 2026-01-01
  5. ↑CRA TD1NL 2026, lines 6–7: "between $915 and $10,057" · Newfoundland and Labrador spouse or eligible dependant amount: nil at this dependant income · $10,057 · effective 2026-01-01
  6. ↑CRA TD1NL 2026, line 2: "net income from all sources will be $39,138 or less, enter $7,142 … between $39,138 and $86,752"; ITA (NL) s.9(2): "B is 15% of the amount, if any, by which the individual's income for the year would exceed [the threshold]" · Newfoundland and Labrador age amount (65 or older at year end), less 15% of net income over the threshold · See the source · effective 2026-01-01
  7. ↑Income Tax Act, 2000 (NL) s.9(3): "B is the lesser of (a) $1,000; and (b) the amount determined under paragraph (b) of the description of B in subsection 118(3) of the federal Act"; TD1NL 2026 line 3 · Newfoundland and Labrador pension income amount, fixed in the statute · $1,000 · effective 2000-01-01
  8. ↑Income Tax Act, 2000 (NL) s.17: "Section 118.7 of the federal Act applies for the purpose of this Act" · NL428 carries base CPP contributions and EI premiums as credits at the lowest Newfoundland and Labrador rate · effective 2026-01-01
  9. ↑Income Tax Act, 2000 (NL) s.20(b): "6.3% of the total of the amount required under paragraph 82(1)(a.1) and subparagraph 82(1)(b)(ii) of the federal Act" · Newfoundland and Labrador dividend credit on eligible dividends, as a share of the grossed-up dividend · 6.3% · effective 2021-01-01
  10. ↑Income Tax Act, 2000 (NL) s.20(a): "3.2% of the total of the amount required under paragraph 82(1)(a) and subparagraph 82(1)(b)(i) of the federal Act" · Newfoundland and Labrador dividend credit on other than eligible dividends, as a share of the grossed-up dividend · 3.2% · effective 2016-01-01
  11. ↑Income Tax Act, 2000 (NL) s.5: "“provincial percentage” for a taxation year means the appropriate percentage divided by the appropriate percentage as defined in the federal Act, expressed as a percentage that is rounded to the nearest one tenth"; s.30: "A x B where A is the provincial percentage"; 8.7% ÷ 14% = 62.1% for 2026 (NL428 2025 printed 60% = 8.7 ÷ 14.5) · Newfoundland and Labrador minimum tax: this share of the federal additional tax (the provincial lowest rate over the federal lowest rate) · 62.1% · effective 2026-01-01
  12. ↑Income Tax Act, 2000 (NL) s.33 (foreign tax deduction) · Newfoundland and Labrador foreign tax credit (T2036): foreign non-business tax beyond the federal credit, up to the foreign share of Newfoundland and Labrador tax · effective 2026-01-01
  13. ↑Low Income Tax Reduction Regulations for the 2025 and 2026 Taxation Years (NL Reg 18/26) s.3(b): "for the 2026 taxation year, (i) the amount referred to in paragraph 21.1(2.1)(a) of the Act is $842, and (ii) the amount referred to in paragraph 21.1(2.1)(b) of the Act is $563"; ITA (NL) s.21.1(2): "the amount, if any, by which A + B exceeds 16% of the amount, if any, by which (a) the eligible individual's adjusted income … exceeds (b) $18,547; or (c) where the eligible individual has a qualified relation … or claims an amount under paragraph 9(1)(b) …, $31,362"; s.21.1(5): "applied last" · Newfoundland and Labrador low income reduction: an amount for the individual and one for a spouse or eligible dependant, less 16% of family income over a threshold (higher with a spouse or dependant); applied last; one claim a couple · See the source · effective 2026-01-01
  14. ↑Our convention under ITA (NL) s.21.1(3) ("only one of those individuals may apply"): the higher-income spouse is the likelier to have the tax to absorb it (ties: the earlier plan person); the unused part (s.21.1(4)) does not pass to the other · In a couple, the spouse with the higher net income claims the Newfoundland and Labrador low income reduction · effective 2026-10-03
  15. ↑Income Tax Act, 2000 (NL) s.6.1(3)(b): "“relevant section” means section 7, 11, 12, 17.1, 32, subsections 9(1) and (2) and paragraphs 21.1(2)(b) and (c)"; s.9(5): "the amount of $13,094 … shall not be adjusted … before the 2027 taxation year" · Newfoundland and Labrador indexes its brackets, credit amounts and low income reduction thresholds by the provincial price index, but not the pension amount, and not the basic amount before 2027 · effective 2026-01-01