The tax brackets in Newfoundland and Labrador (NL) were indexed by 2.80% in 2022.
Tax rates range from 8.70% on taxable income up to $39,147, and 21.80% on taxable income exceeding $1 million.
When federal and provincial tax rates are combined, the top marginal tax rate for regular income in NL is 54.80%.
Newfoundland’s minimum wage is $12.75 per hour after it was last increased in October 2021. It is expected to increase to $13.20 per hour as of April 1, 2022.
You can learn about the income tax rates and brackets in other Atlantic provinces using the links below:
Newfoundland and Labrador Tax Brackets 2021-2022
The income tax brackets and tax rates in Newfoundland and Labrador in 2022 are:
| NL Tax Bracket 2021 | NL Tax Rate 2021 | NL Tax Bracket 2022 | NL Tax Rate 2022 |
|---|---|---|---|
| Up to $38,081 | 8.70% | Up to $39,147 | 8.70% |
| $38,081.01 to $76,161 | 14.50% | $39,147.01 to $78,294 | 14.50% |
| $76,161.01 to $135,973 | 15.80% | $78,294.01 to $139,780 | 15.80% |
| $135,973.01 to $190,363 | 17.30% | $139,780.01 to $195,693 | 17.30% |
| $190,363.01 + | 18.30% | $195,693.01 to $250,000 | 18.30% |
| $250,000.01 to $500,000 | 20.80% | ||
| $500,000.01 to $1,000,000 | 21.30% | ||
| Over $1,000,000 | 21.80% |
NL’s basic personal amount that is not subject to taxation in the 2022 tax year is $9,804.
In addition to provincial taxes, you pay federal taxes based on the following income brackets:
| Taxable Income | Federal Tax Rate |
|---|---|
| Up to $50,197 | 15% |
| $50,198 to $100,392 | 20.50% |
| $100,393 to $155,625 | 26% |
| $155,626 to $221,708 | 29% |
| $221,709 + | 33% |
Related: Work From Home Jobs in Canada.
Newfoundland and Labrador Marginal Tax Rates (Federal and Provincial)
Your combined marginal tax rate is the tax rate you pay for every additional dollar of income earned.
For the 2022 tax year in NL, your combined taxes are:
| Taxable Income | Regular Income | Capital Gains | Eligible Canadian Dividends | Ineligible Canadian Dividends |
| Up to $39,147 | 23.70% | 11.85% | 3.29% | 13.20% |
| $39,148 to $50,197 | 29.50% | 14.75% | 11.29% | 19.87% |
| $50,198 to $78,294 | 35.00% | 17.50% | 18.88% | 26.20% |
| $78,295 to $100,392 | 36.30% | 18.15% | 20.67% | 27.69% |
| $100,393 to $139,780 | 41.80% | 20.90% | 28.26% | 34.01% |
| $139,781 to $155,625 | 43.80% | 21.90% | 31.02% | 36.31% |
| $155,626 to $195,693 | 47.18% | 23.59% | 35.69% | 40.20% |
| $195,694 to $221,708 | 49.18% | 24.59% | 38.45% | 42.50% |
| $221,709 to $250,000 | 52.80% | 26.40% | 43.44% | 46.66% |
| $250,001 to $500,000 | 53.80% | 26.90% | 44.82% | 47.81% |
| $500,001 to $1,000,000 | 54.30% | 27.15% | 45.51% | 48.39% |
| $1,000,001+ | 54.80% | 27.40% | 46.20% | 48.96% |
Based on the table above, the top combined marginal tax rates payable in NL are:
- Regular income: 54.80%
- Capital gains: 27.40%
- Eligible Canadian dividends: 46.20%
- Ineligible Canadian dividends: 48.96%
Newfoundland and Labrador Tax Credits
Tax credits lower the taxes you pay, and in the case of refundable tax credits, you receive a tax refund if your credits exceed the tax you owe.
Some examples of refundable tax credits available federally include the Working Income Tax Credit and Good and Services Tax (GST/HST).
Non-refundable tax credits that may give you tax relief include the:
- Basic personal amount
- Age amount
- Donations and gifts
- Spousal amount
- Caregiver amount
- Amount for an eligible dependent
- Home buyer’s amount
- Pension Income amount
Tax credits and deductions specific to NL include:
- NL Income Supplement
- NL Seniors’ Benefit
- NL Child Benefit
- NL Low Income Tax Reduction
NL Sales Tax
The Harmonized Sales Tax (HST) is levied on most goods and services you purchase in Newfoundland and Labrador.
The HST rate is 15% of which 10% goes to the province and the remaining 5% is a federal tax.
Goods exempt from HST include basic groceries and some book purchases.
Newfoundland and Labrador Minimum Wage
The minimum wage in NL is $12.75 per hour. Four increases to the minimum wage were set in place starting from April 1, 2020, to October 1, 2021, as follows:
- April 1, 2020: $11.65 (from $11.40)
- October 1, 2020: $12.15
- April 1, 2021: $12.40
- October 1, 2021: $12.75
