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Atlantic Provinces   ->   Newfoundland & Labrador - NL Budgets

Newfoundland & Labrador Budgets

All changes are subject to legislative approval.

2021 Budget - May 31, 2021

Full details on the NL Budget 2021 website.

Tax Changes

bulletPersonal income tax increases for 2022 for taxable incomes greater than $135,973, with the introduction of 3 new tax brackets for taxable income over $250,000. The highest tax rate will be 21.8% (was 17.3%) for taxable income over $1 million, bringing the highest combined federal/NL rate to $54.8%.  2022 Tax brackets/rates (before indexing):
bulletover $135,973 up to $190,363 - 17.8%
bulletover $190,363 up to $250,000 - 19.8%
bulletover $250,000 up to $500,000 - 20.8%
bulletover $500,000 up to $1 million - 21.3%
bulletover $1 million - 21.8%
bulletPhysical Activity Tax Credit will provide a refundable tax credit of up to $2,000 per family.
bullet20 cent per litre sugar sweetened beverage tax to be implemented April 1, 2022.
bullet3 cent increase per cigarette and 6 cent per gram increase on fine cut tobacco. Rebate rate for Labrador Border Zones will increase by 3 cents for cigarettes and 6 cents per gram for fine cut tobacco.
bulletElectric Vehicle Adoption Accelerator program, to provide a $2,500 rebate to consumers for the purchase of electric vehicles.
bulletIncreases to the HST will be evaluated.

2020 Budget - September 30, 2020

Full details on the NL Budget 2020 website.

 - No income tax changes were announced.

 - Increased taxes on tobacco and vaping products.

 - Reduction of provincial portion of the gasoline tax.

 - Increase in carbon tax to $30 per tonne.

 - Investments in child care, infrastructure, small business and health care.

2020-21 Fiscal and Economic Update - July 24, 2020

No tax changes were announced in this update.  NL plans to table the 2020-21 budget on September 30th.

 - News release July 24, 2020

 - Fiscal Update 2020-21 (pdf)

Legislation subsequent to 2019 Budget:

Bill 14, An Act to Amend the Income Tax Act, 2000 was tabled on November 7, 2019, with the following tax measures:

    - Ensure that split income is included in the net income amount used to compute the age amount tax credit.  This provision also sets the indexed 2020 age amount and threshold as the new base amount to be indexed in subsequent years.

    - Extend pension tax credit eligibility to retirement income security benefits or income replacement benefits paid under Part 2 of the Veterans Well-being Act (Canada).

    - Restrict the child care tax credit, volunteer firefighters' tax credit and search and rescue tax credit to individuals who were resident in the province at the end of the taxation year

    - Amend the foreign tax credit rate to be consistent with the change in the general income tax rate for corporations.

2019 Budget April 16, 2019 - on NL website.

    - Tax on auto insurance being eliminated

    - Newfoundland and Labrador Film and Video Industry Tax Credit renewed until 2021.

    - As originally planned, 2019 is the final year for the Temporary Deficit Reduction Levy.

2018 Budget March 27, 2018 - on NL website.

    - New Search and Rescue Volunteer Tax Credit, in the amount of $3,000 x the lowest tax rate, effective for 2019 and later years
    - The retail sales tax on auto insurance will be reduced over 4 years, with the tax being reduced by 2% for 2019 and 1% each in 2020, 2021 and 2022.
    - Exemption threshold for the provincial payroll tax is being increased from $1.2 million to $1.3 million, effective January 1, 2019.

2017 Budget April 6, 2017 - on NL website.

    - No new taxes or fees
    - 75% of the temporary gas tax introduced in Budget 2016 will be eliminated in 2017.  On June 1, 2017, gas tax will be reduced by 8.5 cents per litre, with a further 4 cents per litre reduction on December 1, 2017.
    - The NL Income Supplement and Seniors' Benefit will be maintained through a $120 million investment.

2016 Budget April 14, 2016 - on NL website.

Taxation changes effective July 1, 2016 (See Revenue Action Highlights on the NL budget website):

bulletAll personal income tax (PIT) rates will be increased.  See Bill 13 passed June 7, 2016.
bulletThe dividend tax credit rate for non-eligible dividends will be reduced from 4.1% to 3.5% for dividends received on or after July 1, 2016.  See Bill 17 passed June 7, 2016.
bulletThe Newfoundland and Labrador Income Supplement will be paid to eligible low income seniors, individuals, families and persons with disabilities, with eligibility based on family net income.  Eligible recipients will receive their first payment, consisting of two quarterly payments, in October 2016.  This replaces the previous NL HST credit.
bulletEffective July 1, 2016, HST will increase from 13% to 15%.
bulletThe Retail Sales Tax on insurance premiums is being re-introduced at a rate of 15%.
bulletThe Insurance Companies tax will increase by 1 percentage point to 5%.
bulletA Deficit Reduction Levy of up to $900 annually, depending on taxable income, will be implemented, but individuals with taxable income of $20,000 or less will be exempt
          - this was revised to a maximum of $1,800 annually, but exempt for taxable income of $50,000 or less, as per an announcement by the NL government on May 25, 2016.  The budget indicated that his is a temporary tax which will be phased out over 3 years beginning in 2018.  However, Bill 14, passed June 7, 2016, provides for the levy to be in effect for the 2016 to 2019 taxation years.  The calculation of the Levy can be found on the NL Department of Finance Temporary Deficit Reduction Levy web page.

Other taxation changes:

bulletEffective April 15, 2016, the tobacco tax on cigarettes increases by one cent per cigarette, and on fine-cut tobacco increases by two cents per gram.
bulletRetroactive to January 1, 2016, the general corporate income tax rate will increase 1% to 15%, and the Manufacturing and Processing Profits Tax Credit is eliminated.  See Bill 15 passed June 7, 2016.
bulletEffective January 1, 2016, the Financial Corporations Capital Tax Rate increases 1%.
bulletEffective June 2, 2016, gasoline tax will temporarily increase by 16.5 cents per litre.  The tax rate on diesel products will increase by 5 cents per litre, and on aviation fuel will increase by 1.8 cents per litre.
bulletThe existing Seniors' Benefit will be enhanced.

2015 Budget April 30, 2015 - on NL website.  See also Tax Adjustments Fact Sheet (pdf).

Taxation Highlights:

bulletEffective July 1, 2015, 2 new tax brackets:
bullet14.3% for taxable income over $125,000 and up to $175,000.  The effective 2015 rate is 13.8%, the average for the year.
bullet15.3% for taxable income over $175,000.  The effective 2015 rate is 14.3%, the average for the year.
bulletNote that the donations tax credit rate for donations over $200 will be the new highest tax rate, 15.3%.
bulletEffective January 1, 2016, HST will increase from 13% to 15%.  The HST credit will also be enhanced to mitigate the impact on low income individuals and families, effective with the October 2016 payment.  Note:  This increase was cancelled - see the Newfoundland and Labrador Tax Information Bulletin issued December 14, 2015.
bulletResidential Energy Rebate program ending effective July 1, 2015.  Applications must be received within 36 months after the eligible product is supplied.
bulletEffective April 1, 2015, Financial Corporations Capital Tax rate is increased from 4% to 5%.
bulletNew Interactive Digital Media Tax Credit effective January 1, 2015:  40% refundable provincial tax credit on eligible wages and remuneration.
bulletEffective May 1, 2015, tobacco retailers in Labrador West will be eligible for a rebate of a portion of tobacco tax.

2014 Budget March 27, 2014

2013 Budget March 26, 2013 - on NL website

- no tax changes

2012 Budget April 24, 2012- on NL website

- no tax changes

2011 Budget April 19, 2011 - on NL website

Taxation highlights:

bulletResidential energy rebate of 8% equal to provincial portion of HST, effective Oct 1, 2011, to be administered by the province.
bulletStarting 2011, new non-refundable child care tax credit based on child care expenses currently deductible from income.  The maximum tax credit will be $539 per child, and will depend on a child's age and the amount of deductible child care expenses.
bulletNew non-refundable Volunteer Firefighters' Tax Credit, maximum $231 tax credit for firefighters who perform at least 200 hours of service each year.
bulletIncrease in payroll tax exemption threshold to $1.2 million from $1 million.

2010 Budget

2009 Budget

2008 Budget

2007 Budget

Revised: June 01, 2021

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