Atlantic Provinces   ->   Newfoundland & Labrador -> NL 2014 Budget

NL 2014 Budget - March 27, 2014

For complete budget details see the NL Budget 2014 website.  For further details of tax changes see their news release about Enhancements to Tax Programs.

NL 2014 Budget Personal Tax Changes

NL Low-Income Seniors' Benefit

This benefit will be increased, beyond the increase for annual indexation.  This results in a maximum payment in October 2014 of $1,036, up from $971 in 2013.

NL Low-Income Tax Reduction

Enhancements to the tax reduction:

• Changes are effective for the 2014 taxation year
• Income thresholds to be increased
  • from $17,547 to $18,547 for individuals
  • from $29,362 to $31,362 for families
• An individual with income of $19,000 to $22,000 will save $231 annually
• A family with net income of $32,000 to $35,000 will save $463 annually, less for other net incomes

Dividend Tax Credit (DTC)

Effective July 1, 2014, the dividend tax credit rate on dividends eligible for the enhanced dividend tax credit will be reduced from 11% of grossed-up dividends to 5.4%.  This works out to a decrease from 15.18% of actual dividends to 7.45%.  See the NL dividend tax credit page.

Effective July 1, 2014, the dividend tax credit rate on non-eligible dividends (also known as regular, or small business dividends) will be reduced from 5% to 4.1%.

NL Corporate Income Tax

Effective July 1, 2014 the small business corporate income tax rate will be reduced from 4% to 3%.

NL Tobacco Tax Increase

Effective March 28, 2014 the tobacco tax will increase by:

• 3 cents per cigarette
• 6 cents per gram of fine-cut tobacco

Wholesalers and retailers must complete an inventory, and remit tobacco tax to the Department of Finance on the inventory.  A tax return and inventory form will be mailed within the next few days.

Revised: