Did you know that roughly 95% of the population of Newfoundland and Labrador live on the island, and that about 60% live within the city of St. John’s? So, if you’re looking for some solitude, rural Newfoundland and Labrador might be for you!
Newfoundland and Labrador have a tax system similar to other Canadian provinces. Many of the provincial taxes and credits for residents of Newfoundland and Labrador compliment similar credits at the federal level, but there are some unique credits for residents of Newfoundland and Labrador.
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 this year’s tax bracket rates.
Newfoundland and Labrador’s Tax Brackets for Tax Year 2020
Taxable Annual Income
|8.7%||on the first $37,929||$37,929|
|14.5%||on the next $37,929||over $37,929 up to $75,858|
|15.8%||on the next $59,574||over $75,858 up to $135,432|
|17.3%||on the next $54,172||over $135,432 up to $189,604|
|18.3%||on the portion over $189,604||over $189,604|
Newfoundland and Labrador Credits
- A complete list of Non-Refundable Tax Credits and other credits or deductions for Newfoundland and Labrador residents can be found in this CRA link: Newfoundland & Labrador Tax and Credits.
- Newfoundland and Labrador Income Supplement and Senior’s 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 GST/HST Credit, and more information on applying for and receiving the benefits can be found in this CRA link.
There is an allowable amount of income that you can earn before you must start paying taxes. That is called the “basic personal” or “personal amount.” For the 2020 tax year, the Federal Basic Personal Amount (BPA) is $13,229, while the Newfoundland & Labrador amount is $9,498.
This TurboTax article provides more information on the federal tax rates, as well as links to other provinces and tax calculators: An Overview of Canada’s Tax Brackets.
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