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!

Key takeaways
  1. Newfoundland and Labrador uses a progressive tax structure.
  2. Your taxable income represents your total income minus federal deductions like the RRSP deduction and child care expenses. 
  3. Be sure to check Newfoundland and Labrador’s  provincial tax credits to maximize your eligibility to certain credits.

Newfoundland and Labrador’s progressive tax rate structure

As with most provinces, Newfoundland and Labrador use 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.

Under the current tax on income method, tax for all provinces (except Québec) 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 RRSP deduction and child care expenses. Like its name implies, it is 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 2022 tax year, the federal basic personal amount (BPA) is $14,398, while the Newfoundland & Labrador amount is $9,803

Newfoundland and Labrador’s Tax Brackets for Tax Year 2022

Tax Rate

Tax Bracket

Taxable Annual Income

8.7%

 on the first $39,147

 $39,147

14.5%

 on the next $39,147

 over $39,147 up to $78,294

15.8%

 on the next $61,486

over $78,294 up to $139,780

17.8%

on the next $55,913

over $139,780 up to $195,693

19.8%

on the next $54,307

over $195,693 up to $250,000

20.8%

on the next $250,000

over $250,000 up to $500,000

21.3%

on the next $500,000

over $500,000 up to $1,000,000

21.8%

on the portion over $1,000,000

over $1,000,000

For 2021 tax rates, review this link from the Canadian government.

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.

Under the current tax on income method, tax for all provinces (except Québec) 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 RRSP deduction and child care expenses. Like its name implies, it is 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 2022 tax year, the federal basic personal amount (BPA) is $14,398, while the Newfoundland & Labrador amount is $9,803.

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 complement similar credits at the federal level, but there are some unique credits for residents of Newfoundland and Labrador.

Newfoundland and Labrador’s provincial tax credits

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.