Home -> Atlantic Provinces -> Newfoundland & Labrador -> NL Budgets
Newfoundland & Labrador Budgets
All changes are subject to legislative approval.
NL 2024 Budget - March 21, 2024
NL 2023 Budget - March 23, 2023
NL 2022 Budget - April 7, 2022
NL 2020 Budget - September 30, 2020
NL 2019 Budget - April 16, 2019
NL 2017 Budget - April 6, 2017
NL 2016 Budget - April 14, 2016
NL 2015 Budget - April 30, 2015
Newfoundland & Labrador 2024 Budget - March 21, 2024
Full details on the NL Budget 2024 website.
 | Deficit of $152 million forecast for 2024-25, surpluses forecast for following years until 2028-29. |
| no new taxes, tax increases, or fee increases |
| Small business corporate income tax rate reduced from 3% to 2.5% effective January 1, 2024. There is no mention of whether the dividend tax credit for non-eligible dividends will be reduced as a result of this change. As of December 12, 2024, no additional Bill had been introduced with a change to the dividend tax credit. |
On April 23, 2024, Bill 35, An Act to Amend the Income Tax Act, 2000 was tabled for the change in the small business corporate income tax rate, receiving Royal assent on May 29, 2024.
Newfoundland & Labrador 2023 Budget - March 23, 2023
Full details on the NL Budget 2023 website.
| no tax or fee increases |
| continuing with the 8.05 cent per litre in the reduction of the provincial tax on gas and diesel |
| eliminating the retail sales tax on home insurance |
| increasing payments through the Seniors' Benefit and Income Supplement quarterly payments |
| doubling the Physical Activity Refundable Tax Credit rate from 8.7% to 17.4% to provide a refundable tax credit of up to $348 per family, effective for the 2023 taxation year |
| increasing the All Spend Film and Video Production Tax Credit to 40% |
On April 25, 2023, Bill 38, An Act to Amend the Revenue Administration Act and An Act to Amend the Income Tax Act, 2000 was tabled to:
| Revenue Administration Act:
| ||||
| Income Tax Act, 2000:
|
2022 Budget - April 7, 2022
Full details on the NL Budget 2022 website.
Bill 54, An Act to Amend the Income Tax Act, 2000, Royal Assent June 1, 2022
Projected deficit for 2021-22 now $400 million, $351 million for 2022-23. The forecast is for a balanced budget in 2026-27.
| temporary elimination of 15% retail sales tax on personal property insurance, such as home insurance, for policies entered into or renewed between April 7, 2022 and April 6, 2023. |
| no provincial tax or fee increases |
Personal Tax Changes
| reinstate limitations respecting an individual's ability to claim the equivalent to spouse amount, the caregiver credit and the infirm dependent credit |
| ensure continued availability of the education credit |
| clarify that the physical activity tax credit may not be claimed by a person who is exempt from paying tax in the province |
| see the Bill 54 Explanatory Notes for full details of all changes. |
Business Tax Changes
| New green technology credit of 20% to help businesses with specific capital costs for green activities such as equipment for energy conservation and clean energy generation and efficient use of fossil fuels. |
| New 10% manufacturing and processing investment tax credit for manufacturing, fishery, farming and forestry sectors to invest in capital equipment. |
| New 30% All Spend Film and Video Production Tax Credit which will apply to total qualified production costs with a maximum tax credit of $10 million annually per project. |
2021 Budget - May 31, 2021
Full details on the NL Budget 2021 website.
Bill 14, An Act to Amend the Income Tax Act, 2000, Royal Assent June 23, 2021, amends the personal income tax rates.
Bill 15, An Act to Amend the Income Tax Act, 2000 No. 2, Royal Assent June 23, 2021:
| introduces the physical activity tax credit | ||||
| amends dividend tax credit rates
effective January 1, 2022:
|
Tax Changes
| Personal income tax increases for 2022 for taxable
incomes greater than $135,973, with the introduction of 3 new tax brackets
for taxable income over $250,000. The highest tax rate will be 21.8% (was
17.3%) for taxable income over $1 million, bringing the highest combined
federal/NL rate to $54.8%. 2022 Tax brackets/rates (before indexing):
| ||||||||||||||
| Physical Activity Tax Credit will provide a refundable tax credit of up to $2,000 per family - effective January 1, 2021. | ||||||||||||||
| 20 cent per litre sugar sweetened beverage tax to be implemented April 1, 2022. | ||||||||||||||
| 3 cent increase per cigarette and 6 cent per gram increase on fine cut tobacco. Rebate rate for Labrador Border Zones will increase by 3 cents for cigarettes and 6 cents per gram for fine cut tobacco. | ||||||||||||||
| Electric Vehicle Adoption Accelerator program, to provide a $2,500 rebate to consumers for the purchase of electric vehicles. | ||||||||||||||
| Increases to the HST will be evaluated. |
2020 Budget - September 30, 2020
Full details on the NL Budget 2020 website.
- No income tax changes were announced.
- Increased taxes on tobacco and vaping products.
- Reduction of provincial portion of the gasoline tax.
- Increase in carbon tax to $30 per tonne.
- Investments in child care, infrastructure, small business and health care.
2020-21 Fiscal and Economic Update - July 24, 2020
No tax changes were announced in this update. NL plans to table the 2020-21 budget on September 30th.
- Fiscal Update 2020-21 (pdf)
2019 Budget April 16, 2019 - on NL website.
- Tax on auto insurance being eliminated
- Newfoundland and Labrador Film and Video Industry Tax Credit renewed until 2021.
- As originally planned, 2019 is the final year for the Temporary Deficit Reduction Levy.
Legislation subsequent to 2019 Budget
Bill 14, An Act to Amend the Income Tax Act, 2000 was tabled on November 7, 2019, with the following tax measures:
- Ensure that split income is included in the net income amount used to compute the age amount tax credit. This provision also sets the indexed 2020 age amount and threshold as the new base amount to be indexed in subsequent years.
- Extend pension tax credit eligibility to retirement income security benefits or income replacement benefits paid under Part 2 of the Veterans Well-being Act (Canada).
- Restrict the child care tax credit, volunteer firefighters' tax credit and search and rescue tax credit to individuals who were resident in the province at the end of the taxation year
- Amend the foreign tax credit rate to be consistent with the change in the general income tax rate for corporations.
2018 Budget March 27, 2018 - on NL website.
- New Search and Rescue Volunteer Tax Credit, in the
amount of $3,000 x the lowest tax rate, effective for 2019 and later years
- The retail sales tax on auto insurance will be reduced over
4 years, with the tax being reduced by 2% for 2019 and 1% each in 2020, 2021 and
2022.
- Exemption threshold for the provincial payroll tax is being
increased from $1.2 million to $1.3 million, effective January 1, 2019.
2017 Budget April 6, 2017 - on NL website.
- No new taxes or fees
- 75% of the temporary gas tax introduced in Budget 2016 will
be eliminated in 2017. On June 1, 2017, gas tax will be reduced by 8.5
cents per litre, with a further 4 cents per litre reduction on December 1, 2017.
- The NL Income Supplement and Seniors' Benefit will be
maintained through a $120 million investment.
2016 Budget April 14, 2016 - on NL website.
Taxation changes effective July 1, 2016 (See Revenue Action Highlights on the NL budget website):
| All personal income tax (PIT) rates will be increased. See Bill 13 passed June 7, 2016. |
| The dividend tax credit rate for non-eligible dividends will be reduced from 4.1% to 3.5% for dividends received on or after July 1, 2016. See Bill 17 passed June 7, 2016. |
| The Newfoundland and Labrador Income Supplement will be paid to eligible low income seniors, individuals, families and persons with disabilities, with eligibility based on family net income. Eligible recipients will receive their first payment, consisting of two quarterly payments, in October 2016. This replaces the previous NL HST credit. |
| Effective July 1, 2016, HST will increase from 13% to 15%. |
| The Retail Sales Tax on insurance premiums is being re-introduced at a rate of 15%. |
| The Insurance Companies tax will increase by 1 percentage point to 5%. |
| A Deficit Reduction Levy of up to $900 annually, depending on taxable
income, will be implemented, but individuals with taxable income of
$20,000 or less will be exempt - this was revised to a maximum of $1,800 annually, but exempt for taxable income of $50,000 or less, as per an announcement by the NL government on May 25, 2016. The budget indicated that his is a temporary tax which will be phased out over 3 years beginning in 2018. However, Bill 14, passed June 7, 2016, provides for the levy to be in effect for the 2016 to 2019 taxation years. The calculation of the Levy can be found on the NL Department of Finance Temporary Deficit Reduction Levy web page. |
Other taxation changes:
| Effective April 15, 2016, the tobacco tax on cigarettes increases by one cent per cigarette, and on fine-cut tobacco increases by two cents per gram. |
| Retroactive to January 1, 2016, the general corporate income tax rate will increase 1% to 15%, and the Manufacturing and Processing Profits Tax Credit is eliminated. See Bill 15 passed June 7, 2016. |
| Effective January 1, 2016, the Financial Corporations Capital Tax Rate increases 1%. |
| Effective June 2, 2016, gasoline tax will temporarily increase by 16.5 cents per litre. The tax rate on diesel products will increase by 5 cents per litre, and on aviation fuel will increase by 1.8 cents per litre. |
| The existing Seniors' Benefit will be enhanced. |
2015 Budget April 30, 2015 - on NL website. See also Tax Adjustments Fact Sheet (pdf).
Taxation Highlights:
| Effective July 1, 2015, 2 new tax brackets:
| ||||||
| Effective January 1, 2016, HST will increase from 13% to 15%. The HST credit will also be enhanced to mitigate the impact on low income individuals and families, effective with the October 2016 payment. Note: This increase was cancelled - see the Newfoundland and Labrador Tax Information Bulletin issued December 14, 2015. | ||||||
| Residential Energy Rebate program ending effective July 1, 2015. Applications must be received within 36 months after the eligible product is supplied. | ||||||
| Effective April 1, 2015, Financial Corporations Capital Tax rate is increased from 4% to 5%. | ||||||
| New Interactive Digital Media Tax Credit effective January 1, 2015: 40% refundable provincial tax credit on eligible wages and remuneration. | ||||||
| Effective May 1, 2015, tobacco retailers in Labrador West will be eligible for a rebate of a portion of tobacco tax. |
NL 2014 & Earlier Budgets
2014 Budget March 27, 2014
2013 Budget March 26, 2013 - on NL website
- no tax changes
2012 Budget April 24, 2012- on NL website
- no tax changes
2011 Budget April 19, 2011 - on NL website
Taxation highlights:
| Residential energy rebate of 8% equal to provincial portion of HST, effective Oct 1, 2011, to be administered by the province. |
| Starting 2011, new non-refundable child care tax credit based on child care expenses currently deductible from income. The maximum tax credit will be $539 per child, and will depend on a child's age and the amount of deductible child care expenses. |
| New non-refundable Volunteer Firefighters' Tax Credit, maximum $231 tax credit for firefighters who perform at least 200 hours of service each year. |
| Increase in payroll tax exemption threshold to $1.2 million from $1 million. |
2010 Budget March 29, 2010
2009 Budget March 26, 2009
2008 Budget April 29, 2008
2007 Budget April 26, 2007
Revised: December 13, 2024