Newfoundland and Labrador Tax Rates 2025

No fee everyday banking

Set up direct deposit and skip the monthly fee. Free to open, and the Easy plan has no monthly fee. Worth doing if you will actually move your pay or your CRA deposits over, not if the card sits unused. Code BREMO2026.

See how it works

Updated March 2025 • bremo.io

Newfoundland and Labrador has Canada's most complex provincial income tax structure, with ten brackets and a top marginal rate of 21.3% — the highest top provincial rate in the country. Combined with the federal rate, total marginal rates can reach approximately 54.8% at very high incomes. The province also levies 15% HST.

NL at a Glance: Ten provincial tax brackets. Top rate 21.3% on income over $1,000,000. However, most ordinary income falls in the 8.7%–19.8% range. 15% HST. Strong offshore oil revenue supports public services.

2025 Newfoundland Provincial Income Tax Brackets

Taxable Income	NL Provincial Rate
$0 – $43,198	8.70%
$43,198 – $86,395	14.50%
$86,395 – $154,244	15.80%
$154,244 – $215,943	17.80%
$215,943 – $275,870	19.80%
$275,870 – $551,739	20.80%
$551,739 – $1,000,000	21.30%
Over $1,000,000	21.30%

2025 Combined Federal + NL Marginal Tax Rates

Income Range	Combined Rate
$0 – $43,198	23.70%
$43,198 – $57,375	29.50%
$57,375 – $86,395	35.00%
$86,395 – $114,750	36.30%
$114,750 – $154,244	41.80%
$154,244 – $158,519	43.80%
$158,519 – $215,943	46.80%
$215,943 – $220,000	48.80%
$220,000 – $275,870	52.80%
Over $275,870	53.80%–54.80%

NL Basic Personal Amount 2025

Newfoundland's basic personal amount is $10,818 for 2025.

Newfoundland Sales Tax: 15% HST

Like the other Atlantic provinces, Newfoundland and Labrador participates in the HST system at 15% (5% GST + 10% provincial component). Basic groceries, prescription medications, and some other items are exempt.

Key NL Tax Credits

NL Newfoundland and Labrador Income Supplement: Quarterly payments for lower-income residents.
NL Seniors' Benefit: Annual benefit for lower-income seniors aged 65+.
NL Resort Property Investment Tax Credit: Credit for eligible investments in tourism resort properties.
NL Direct Equity Tax Credit: 20–35% credit for eligible investments in NL small businesses.

Newfoundland's Economic Reality

Newfoundland benefits significantly from offshore oil revenues (Hibernia, Terra Nova, White Rose), which fund public services. However, fluctuating oil prices create revenue volatility. The province has among Canada's highest public debt per capita, contributing to its need for higher tax revenue. Despite high rates, St. John's housing prices remain far below major Canadian metros.

Keep More of Your Income With Free Banking

You can't control tax rates, but you can control bank fees. KOHO offers free banking with no monthly fees and no minimum balance. Use code BREMO2026 for a bonus when you sign up.

Open KOHO Free — Code BREMO2026