Atlantic Provinces   ->  Newfoundland & Labrador -> NL 2008 Budget

NL 2008 Budget - April 29, 2008

For complete budget details see the NL Budget 2008 website.

Personal tax changes

Personal income tax rates

Changes effective July 1, 2008:

• tax rates to be reduced
  • lowest tax bracket rates from 8.7% to 7.7% (2008 average = 8.2%)
  • middle tax bracket rates from 13.8% to 12.8% (2008 average = 13.3%), and
  • highest tax bracket rates from 16.5% to 15.5% (2008 average = 16%)

The marginal tax rates tables have been revised to reflect the reduced rates.

Low income seniors' benefit

Seniors' Benefit income threshold increased to $25,275 - $31,930 and the benefit amount increased to $776 for single seniors to match the benefit for senior couples.

Federal tax changes

Federal budget 2008 income tax measures affecting taxable income and certain tax credits that automatically affect provincial taxes in all provinces and territories except Quebec:

• new Tax-Free Savings Accounts (TFSA)
• changes to RESPs
• reduction of gross-up amount for dividends eligible for the enhanced dividend tax credit.
• increase in maximum Northern Residents deduction beginning in 2008
• capital cost allowance changes
• expansion of list of expenses eligible for medical expense tax credit, effective 2008

Revised: