Newfoundland & Labrador 2021 and 2020 Personal Marginal Income Tax Rates

Newfoundland and Labrador Income Tax Act, 2000 s. 6.1, 7, 9

The Federal tax brackets and personal tax credit amounts are increased for 2021 by an indexation factor of 1.010.

The NL tax brackets and personal tax credit amounts are increased for 2021 by an indexation factor of 1.004.

The NL 2021 Budget increased tax rates for taxable incomes over $135,973 and added 3 new tax brackets, beginning January 1, 2022.

The indexation factors, tax brackets and tax rates have been confirmed to Canada Revenue Agency information.

The tax rates do not include the NL Deficit Reduction Levy, which can add 10% to the marginal tax rate at various levels of taxable income over $50,000. 2020 is the last year for this levy, unless legislation is tabled to extend it. See the effect of the Deficit Reduction Levy by using our Detailed Canadian Tax and RRSP Savings Calculator.

Tax Tip: read the article Understanding the Tables of Personal Income Tax Rates, especially if you are trying to compare the rates below to the marginal tax rates in the Basic Tax Calculator.

Newfoundland & Labrador Personal Income Tax Brackets and Tax Rates
2021 Taxable Income	2021 Tax Rates	2020 Taxable Income	2020 Tax Rates
first $38,081	8.7%	first $37,929	8.7%
over $38,081 up to $76,161	14.5%	over $37,929 up to $75,858	14.5%
over $76,161 up to $135,973	15.8%	over $75,858 up to $135,432	15.8%
over $135,973 up to $190,363	17.3%	over $135,432 up to $189,604	17.3%
over $190,363	18.3%	over $189,604	18.3%

Combined Federal & Newfoundland & Labrador Tax Brackets and Tax Rates
2021 Taxable Income	2021 Marginal Tax Rates				2020 Taxable Income	2020 Marginal Tax Rates
	Other Income	Capital Gains	Canadian Dividends			Other Income	Capital Gains	Canadian Dividends
	Other Income	Capital Gains	Eligible	Non-Eligible		Other Income	Capital Gains	Eligible	Non-Eligible
first $38,081	23.70%	11.85%	4.53%	12.85%	first $37,929	23.70%	11.85%	4.53%	12.85%
over $38,081 up to $49,020	29.50%	14.75%	12.53%	19.52%	over $37,929 up to $48,535	29.50%	14.75%	12.53%	19.52%
over $49,020 up to $76,161	35.00%	17.50%	20.12%	25.84%	over $48,535 up to $75,858	35.00%	17.50%	20.12%	25.84%
over $76,161 up to $98,040	36.30%	18.15%	21.91%	27.34%	over $75,858 up to $97,069	36.30%	18.15%	21.91%	27.34%
over $98,040 up to $135,973	41.80%	20.90%	29.50%	33.66%	over $97,069 up to $135,432	41.80%	20.90%	29.50%	33.66%
over $135,973 up to $151,978	43.30%	21.65%	31.57%	35.39%	over $135,432 up to $150,473	43.30%	21.65%	31.57%	35.39%
over $151,978 up to $190,363(1)	46.62%	23.31%	36.16%	39.21%	over $150,473 up to $189,604(1)	46.52%	23.26%	36.02%	39.09%
over $190,363 up to $216,511(1)	47.62%	23.81%	37.54%	40.36%	over $189,604 up to $214,368(1)	47.52%	23.76%	37.40%	40.24%
over $216,511	51.30%	25.65%	42.61%	44.59%	over $214,368	51.30%	25.65%	42.61%	44.59%
Marginal tax rate for dividends is a % of actual dividends received (not grossed-up taxable amount). Marginal tax rate for capital gains is a % of total capital gains (not taxable capital gains). Gross-up rate for eligible dividends is 38%, and for non-eligible dividends is 15%. For more information see NL dividend tax credits.
Newfoundland & Labrador Basic Personal Amount
2021 Personal Amount	2021 Tax Rate				2020 Personal Amount	2020 Tax Rate
$9,536	8.7%				$9,498	8.7%
Federal Basic Personal Amount
2021 Personal Amount (1)	2021 Tax Rate				2020 Personal Amount (1)	2020 Tax Rate
$13,808	15%				$13,229	15%

(1) See the federal tax rates page for information on the federal personal amount increase. The marginal tax rates above have been adjusted to reflect these changes.

Revised: May 18, 2025