Finance

Personal Income Tax

Newfoundland and Labrador levies personal income tax directly on taxable income. 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.

The following table details the personal income tax rates for the 2017 and 2018 taxation years.

Tax Rates 2017 Taxable Income 2018 Taxable Income
8.7% 1st Tax Bracket
first $35,851
1st Tax Bracket
first $36,926
14.5% 2nd Tax Bracket
over $35,851 up to $71,701
2nd Tax Bracket
over $36,926 up to $73,852
15.8% 3rd Tax Bracket
over $71,701 up to $128,010
3rd Tax Bracket
over $73,852 up to $131,850
17.3% 4th Tax Bracket
over $128,010 up to $179,214
4th Tax Bracket
over $131,850 up to $184,590
18.3% 5th Tax Bracket
over $179,214
5th Tax Bracket
over $184,590

A Temporary Deficit Reduction Levy is in place for the 2016 to 2019 taxation years. Click here for more information on the levy. (Temporary Deficit Reduction Levy)

Tax brackets, non-refundable tax credits (except education, pension income, volunteer firefighters' and search and rescue amounts and most expenditure-based credits) and the Low Income Tax Reduction is indexed annually utilizing the Consumer Price Index for Newfoundland and Labrador.

The provincial non-refundable tax credits for the 2017 and 2018 taxation years are as follows:

Provincial Non-Refundable Credits* 2017 Amount 2018 Amount
Basic Personal Amount $8,978 $9,247
Age Amount $5,731 $5,903
Spouse or Common-Law Partner Amount $7,336 $7,556
Amount for an Eligible Dependant $7,336 $7,556
Amount for Infirm Dependants Age 18 or Older $2,851 $2,936
CPP/QPP Contributions Actual Expense Actual Expense
EI Premiums Actual Expense Actual Expense
Volunteer Firefighters’ Amount or Search and Rescue Amount $3,000 $3,000
Child Care Amount Actual Expense Actual Expense
Adoption Expenses $12,116 $12,479
Pension Income Amount $1,000 $1,000
Caregiver Amount $2,851 $2,937
Disability Amount (for self) $6,058 $6,240
Disability Supplement Amount $2,851 $2,936
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 $1,955 $2,014

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

Charitable Donations Credit
- First $200
- Over $200
8.7%
18.3%
Dividend Tax Credit
- Dividends from small business
- Dividends from large corporations
3.5%
5.4%

The Federal Government administers personal income tax on behalf of the Province. The Canada Revenue Agency can answer your personal income tax questions related to federal and provincial income taxation. You can contact them at 1-800-959-8281.

 
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