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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 2014 and 2015 taxation years are as follows:

2014 Provincial Tax Bracket Rates
1st $34,254 or less 7.7%
2nd $33,245.01 to $68,508 12.5%
3rd Over $68,508 13.3%
2015 Provincial Tax Bracket Rates
1st $35,008 or less 7.7%
2nd $35,008.01-$70,015 12.5%
3rd $70,015.01-$125,000 13.3%
4th $125,000.01-$175,000 13.8%*
5th Over $175,000 14.3%*

*Half year implementation only. The 4th bracket and 5th bracket will rise to 14.3% and 15.3% for the 2016 tax year respectively.

The provincial non-refundable credits for the 2014 and 2015 taxation year are as follows:

Provincial Non-Refundable Credits* 2014 Amount 2015 Amount
Basic Personal Amount $8,578 $8,767
Age Amount $5,476 $5,596
Spousal and Equivalent to Spouse Amounts $7,009 $7,164
Amount for Infirm Dependents Age 18 or Older $2,724 $2,784
CPP/QPP Contributions Actual Expense Actual Expense
EI Premiums Actual Expense Actual Expense
Pension Income Amount $1,000 $1,000
Caregiver Amount $2,724 $2,783
Disability Amount $5,788 $5,915
Disability Supplement Amount $2,724 $2,784
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 $1,868 $1,910

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

Charitable Donations Credit
- First $200
- Over $200
7.7%
13.3%
7.7%
14.3%*
Dividend Tax Credit
- Dividends from small business
- Dividends from large corporations
4.1%**
5.4%**
4.1%
5.4%

*Half-year implementation. The rate will rise to 15.3% for the 2016 tax year.

** 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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