Updated: April 2025  |  bremo.io financial guides

Newfoundland Income Tax Rates 2025

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Newfoundland and Labrador has a multi-bracket provincial income tax system. At higher income levels, NL's rates are among the highest in Canada — a meaningful financial consideration for well-compensated professionals considering a move to the province.

NL Provincial Income Tax Brackets (2025)

Taxable IncomeNL Provincial Rate
First $43,1988.7%
$43,198–$86,39514.5%
$86,395–$154,24415.8%
$154,244–$215,94317.8%
$215,943–$275,870019.8%
Over $275,870021.3%

Brackets are adjusted annually for inflation. These are approximate 2025 figures.

Combined Federal + NL Tax Rate

When combined with federal income tax rates, NL residents face the following marginal rates:

How NL Compares to Other Provinces

ProvinceTop Marginal Rate
Alberta~48%
Ontario~53.5%
Nova Scotia~54%
Newfoundland~54%–55%
Quebec~53.3%

NL's top marginal rate is among the highest in Canada, which matters most for incomes above $150,000. For median-income earners ($60,000–$90,000), the difference between NL and other provinces is meaningful but not dramatic — typically $1,000–$3,000/year.

The trade-off: NL's higher income taxes are partially offset by dramatically lower housing costs. A professional earning $90,000 pays perhaps $2,000 more in tax than in Ontario, but saves $150,000–$300,000 on home purchase price. The math still strongly favours NL for most buyers.

Key NL Tax Credits

Tax Filing in NL

NL residents file a single federal T1 tax return that includes both federal and provincial taxes. Provincial credits are claimed on Schedule NL428. The CRA processes both returns together — there is no separate NL provincial filing.

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