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Personal Income Tax

Personal Income Tax is administered on behalf of the Province by the Federal Government.

Newfoundland and Labrador levies personal income tax (PIT) directly on taxable income, rather than as a percentage of federal tax. This approach is referred to as Tax on Income (TONI).

Under TONI, taxable income is calculated using the same definition of federal taxable income. However, a separate set of Tax Brackets and Tax Rates are used to calculate provincial tax.

Tax brackets, non-refundable tax credits (except education and pension amounts and expenditure based credits), the Low Income Tax Reduction and the Low Income Seniors' Benefit will be indexed annually utilizing the Consumer Price Index.

The provincial rates for the 2011 and 2012 taxation years are as follows:

2011 Provincial Tax Bracket Rates
1st $31,904 or less 7.7%
2nd $31,904 to $63,807 12.5%
3rd Over $63,807 13.3%
2012 Provincial Tax Bracket Rates
1st $32,893 or less 7.7%
2nd $32,893.01 to $65,785 12.5%
3rd Over $65,785 13.3%

The provincial non-refundable credits for the 2011 and 2012 taxation year are as follows:

Provincial Non-Refundable Credits 2011 Amount 2012 Amount
Basic Personal Amount $7,989 $8,237
Age Amount $5,100 $5,258
Spousal and Equivalent to Spouse Amounts $6,528 $6,731
Amount for Infirm Dependents Age 18 or Older $2,537 $2,615
CPP/QPP Contributions Actual Expense Actual Expense
EI Premiums Actual Expense Actual Expense
Pension Income Amount $1,000 $1,000
Caregiver Amount $2,537 $2,615
Disability Amount $5,391 $5,558
Disability Supplement Amount $2,537 $2,616
Interest Paid on Student Loan Actual Expense Actual Expense
Tuition Amount Actual Expense Actual Expense
Education Amount
- full time (per month)
- part time (per month) 		$200
$60
 $200
$60
Medical Expense Amount Threshold $1,740 $1,794
Charitable Donations Credit
- First $200
- Over $200 		7.7%
13.3%		 7.7%
13.3%
Dividend Tax Credit
- Dividends from small business
- Dividends from large corporations		 5%
11.0%
 5%
11.0%

For more information please contact the Taxation and Fiscal Policy Branch.

 
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