Atlantic Provinces   ->   Newfoundland & Labrador -> NL 2010 Budget

NL 2010 Budget - March 29, 2010

For complete budget details see the NL Budget 2010 website.  For details of tax changes see their news release about the Tax Relief Measures.

Personal tax changes

Personal Income Tax Rate Reductions

• Changes are effective as of July 1, 2010
• Provincial personal income tax rate reductions:
  • to 12.5% from 12.8% for income between $31,278 and $62,556
  • to 13.3% from 15.5% for income over $62,556
• This will result in average rates for 2010 of:
  • 12.65% for income between $31,278 and $62,556
  • 14.4% for income over $62,556

The Newfoundland & Labrador tax rate tables have been revised to reflect these changes, as well as the dividend tax credit change.

Age Amount Tax Credit

The 2010 age amount tax credit is increased from $3,681 to $5,000, effective July 1, 2010.  This results in an average age amount of $4,340 applicable for tax year 2010.

Dividend Tax Credit (DTC)

Effective July 1, 2010, the dividend tax credit rate on dividends eligible for the enhanced dividend tax credit will be increased from 9.60%(2010 rate) of grossed-up dividends to 11%.  This works out to an increase from 13.82% of actual dividends to 15.84%.  The NL Income Tax Act is being revised to specify the dividend tax credit as 11% of the Federal grossed-up (taxable) dividend amount, so the 11% will remain the same when the Federal gross-up percentage changes.  See the NL dividend tax credit page for details of future rates.

The 11% rate will apply to dividends received after June 30, 2010.

Corporate Income Tax

Effective April 1, 2010 the small business corporate income tax rate will be reduced from 5% to 4%.

Revised: