Newfoundland and Labrador – Income Tax Brackets, Rates & Provincial Tax Credits
TurboTax Canada
January 21, 2025 | 3 Min Read
Updated for tax year 2025
Newfoundland and Labrador, Canada’s easternmost province, is known for its rugged coastline, rich maritime history, and vibrant cultural heritage. The province boasts peaceful and close-knit communities and work opportunities in the growing tech and energy sectors. Whether you’re already a resident or looking to be one, here are the income tax brackets, rates, and provincial tax credits for Newfoundland and Labrador.
Key Takeaways
- Newfoundland and Labrador uses a progressive tax structure.
- Your taxable income represents your total income minus federal deductions like the RRSP deduction and child care expenses.
- Be sure to check Newfoundland and Labrador’s provincial tax credits to maximize your eligibility to certain credits.
Newfoundland and Labrador’s Tax Brackets for Tax Year 2025
| Tax rate | Taxable income threshold |
|---|---|
| 8.7% | on the portion of taxable income that is $44,192 or less, plus |
| 14.5% | on the portion of taxable income over $44,192 up to $88,382, plus |
| 15.8% | on the portion of taxable income over $88,382 up to $157,792, plus |
| 17.8% | on the portion of taxable income over $157,792 up to $220,910, plus |
| 19.8% | on the portion of taxable income over $220,910 up to $282,214, plus |
| 20.8% | on the portion of taxable income over $282,214 up to $564,429, plus |
| 21.3% | on the portion of taxable income over $564,429 up to $1,128,858, plus |
| 21.8% | on the portion of taxable income over $1,128,858 |
Newfoundland and Labrador’s progressive tax rate structure
As with most provinces, Newfoundland and Labrador uses a progressive tax structure. The tax brackets increase each year, based on inflation. Visit the government of Newfoundland and Labrador’s personal income tax page for more information on personal tax rates.
Under the current tax on income method, tax for all provinces (except Quebec) and territories is calculated the same way as federal tax. Form NL428 is used to calculate this provincial or territorial tax, as well as non-refundable tax credits.
Your taxable income represents your total income minus federal deductions like the Registered Retirement Savings Plan (RRSP) deduction and child care expenses. As the name implies, it’s the amount on which you pay income tax.
There’s an allowable amount of income that you can earn before you must start paying taxes. That is called the “Basic Personal Amount” or “BPA.” For the 2025 tax year, the federal Basic Personal Amount (BPA) is $16,129, while the Newfoundland and Labrador amount is $11,067.
Newfoundland and Labrador’s provincial tax credits
Newfoundland and Labrador has a tax system similar to other Canadian provinces. Many of the provincial taxes and credits for residents of Newfoundland and Labrador complement similar credits at the federal level, but there are some unique credits for residents of Newfoundland and Labrador.
- Newfoundland and Labrador Income Supplement and Seniors’ Benefit: These are refundable tax credits that may be paid to low-income individuals, seniors, and families. A refundable tax credit is an amount paid even if there is no tax payable. The benefits are paid with your quarterly goods and services tax/harmonized sales tax (GST/HST) credit.
- Physical Activity Tax Credit: Take part in a sport or commit to a new fitness goal in Newfoundland and Labrador and be rewarded with a refundable tax credit through the Physical Activity Tax Credit. You can claim up to $2,000 per household for eligible fitness expenses.
- Low-income tax reduction: Designed to assist those in the lower-income tax bracket. For the 2025 taxation year, the LITR will eliminate provincial income tax for individuals with net income up to $23,928 or for families with net income up to $40,460. Partial tax reductions will be received by individuals with net income up to $30,159 and for families with net income up to $50,173
For more information on NL provincial credits, incentives, and benefits, click here. You can also get the full list of federal and provincial credits, and deductions here.
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