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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, pension, and volunteer firefighters’ amounts and most 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 2013 and 2014 taxation years are as follows:

2013 Provincial Tax Bracket Rates
1st $33,748 or less 7.7%
2nd $33,748.01 to $67,496 12.5%
3rd Over $67,496 13.3%
2014 Provincial Tax Bracket Rates
1st $34,254 or less 7.7%
2nd $34,254.01 to $68,508 12.5%
3rd Over $68,508 13.3%

The provincial non-refundable credits for the 2013 and 2014 taxation year are as follows:

Provincial Non-Refundable Credits* 2013 Amount 2014 Amount
Basic Personal Amount $8,451 $8,578
Age Amount $5,395 $5,476
Spousal and Equivalent to Spouse Amounts $6,906 $7,009
Amount for Infirm Dependents Age 18 or Older $2,683 $2,724
CPP/QPP Contributions Actual Expense Actual Expense
EI Premiums Actual Expense Actual Expense
Pension Income Amount $1,000 $1,000
Caregiver Amount $2,684 $2,724
Disability Amount $5,703 $5,788
Disability Supplement Amount $2,684 $2,724
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)
Medical Expense Amount Threshold $1,841 $1,868

* These values represent the maximum amount subject to other parameters.

Charitable Donations Credit
- First $200
- Over $200
Dividend Tax Credit
- Dividends from small business
- Dividends from large corporations

** Effective for dividends received on or after July 1, 2014.

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

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