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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 2010 and 2011 taxation years are as follows:

2010 Provincial Tax Bracket Rates
1st $31,278 or less 7.7%
2nd $31,279 to $62,556 12.65%*
3rd Over $62,556 14.4%*
2011 Provincial Tax Bracket Rates
1st $31,904 or less 7.7%
2nd $31,904.01 to $63,807 12.5%
3rd Over $63,807 13.3%

* Half-year implementation. Rates for the second and third brackets decrease to 12.5% and 13.3% respectively, once full implementation is reached in 2011.

The provincial non-refundable credits for the 2010 and 2011 taxation year are as follows:

Provincial Non-Refundable Credits 2010 Amount 2011 Amount
Basic Personal Amount $7,833 $7,989
Age Amount $4,340* $5,100
Spousal and Equivalent to Spouse Amounts $6,400 $6,528
Amount for Infirm Dependents Age 18 or Older $2,488 $2,537
CPP/QPP Contributions Actual Expense Actual Expense
EI Premiums Actual Expense Actual Expense
Pension Income Amount $1,000 $1,000
Caregiver Amount $2,487 $2,537
Disability Amount $5,285 $5,391
Disability Supplement Amount $2,487 $2,537
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 $1,706 $1,740
Charitable Donations Credit
- First $200
- Over $200 		7.7%
14.4%		 7.7%
13.3%
Dividend Tax Credit
- Dividends from small business
- Dividends from large corporations		 5%
11.0%**
 5%
11.0%

* Half-year year implementation.
** Rate effective July 1, 2010

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

 
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