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Newfoundland & Labrador Non-Refundable Personal Tax Credits

Non-Refundable Personal Tax Credits Tables - federal & all provinces and territories

Dividend Tax Credits

NL Low-Income Tax Reduction

NL Income Tax Act, 2000 s. 21.1

	available to low income individuals and families
	amount received depends on individual or family net income
	cannot exceed NL tax payable (not refundable)
	thresholds are increased for inflation each year
	reduction amounts are set by regulation annually (for 2020 amounts, the regulation was filed November 19, 2020)
	for the Detailed Canadian Tax & RRSP Savings Calculator, we use an amount increased by the NL indexation factor until the actual amounts are available by regulation.

See Canada Revenue Agency ( CRA) form NL428 from the Newfoundland and Labrador General Income Tax and Benefit Package page for detailed calculation.

The 2022 low-income tax reduction factors are:

Income thresholds

	$21,196 for individuals ($20,619 for 2021)
	$35,842 for families ($34,866 for 2021)

Basic reduction $886

Spouse/common-law partner or eligible dependent $494

Amounts are reduced by 16% of adjusted family income in excess of thresholds

See Low Income Tax Reduction on the NL website for more information.

NL Child Care Costs

The 2011 provincial budget introduced a non-refundable tax credit for child care costs, beginning in 2011. Because child care costs are initially claimed as a deduction from income, provincial taxes payable are reduced. The tax credit provides an additional reduction of the provincial taxes payable. The tax credit is calculated by multiplying the child care costs by the lowest personal tax rate. The tax credit is claimed by the individual who claims the child care costs. The Detailed Canadian Tax and RRSP Savings Calculator calculates this tax credit, based on the child care costs entered in the deductions area. However, the costs are not checked to ensure that the maximum allowable is not exceeded. See also our article on Child Care Costs.

Newfoundland & Labrador Volunteer Firefighter Tax Credit

The Newfoundland & Labrador volunteer firefighter tax credit is based on the federal volunteer firefighter tax credit (federal Schedule 1 line 362), so is $3,000 x the lowest NL tax rate of 8.2% for 2016 (8.7% for 2017 and later years).

Newfoundland & Labrador Refundable Tax Credits

NL Physical Activity Tax Credit

NL Income Tax Act, 2000 s. 17.5

Effective for 2021 and later years, for individuals who are residents of NL at the end of the taxation year:

refundable tax credit of 17.4% (8.7% prior to 2023) x claim amount

- This rate is now 2x the lowest personal tax rate, but the Income Tax Act specifies the rate as 17.4%, not as 2x the lowest personal tax rate, so it will not necessarily change if the lowest personal tax rate changes.

claimed on the tax return

per family, lesser of:

	$2,000 or
	total of eligible fitness expenses

maximum tax refund is $348 (17.4% x $2,000) - doubled for 2023 and later years as per the NL 2023 Budget

family is you plus your spouse or common-law partner, and any dependent children less than 18 years of age

tax credit can be split between spouses

amounts paid to the taxpayer's parent, spouse or common-law partner or an individual who is under 18 years of age is not considered an eligible fitness expense

receipts must be retained, showing:

	name & address of organization providing the receipt
	name of the eligible program or activity
	amount paid, date paid, amount eligible for the tax credit (eligible fitness expenses)
	full name of person paying the expense
	authorized signature (except for electronic receipts)

See Physical Activity Tax Credit on the NL website, which provides detailed information on eligible fitness expenses.

See Bill 15, An Act to Amend the Income Tax Act, 2000 No. 2 for the legislation for this tax credit.

NL Low Income Seniors' Benefit (NLSB)

NL Income Tax Act, 2000 s. 34(4)(b)

Effective for 2016 and later years:

	refundable tax credit, payable even when the senior has no tax payable
	combined with the October GST/HST credit payment
	to qualify, the person must be 65 years of age by December 31st of the taxation year
	annual benefit of $1,313 per year for 2016 and later years, reduced by 11.66% of net income over $29,402
	reduced to zero at net incomes of $40,663 or more
	where both spouses qualify, the benefit is paid only once
	threshold and annual benefit amounts are indexed for inflation each year
	combined with the quarterly federal GST/HST credit payment

NL Income Supplement (previously Harmonized Sales Tax Credit (NLHSTC))

NL Income Tax Act, 2000 s. 34

	for low income individuals or families
	combined with the quarterly GST/HST credit payments, with first payment of 2 quarterly payments in October 2016
	basic annual credit of $220 for eligible individuals, maximum annual credit of $450
	the additional $230 will be phased in at a rate of 4.6% of family net income over $15,000
	eligible individuals with family net income of $20,000 to $40,000 will receive the maximum credit of $450
	the phase-out of the benefit begins at family net income of $40,000, at a rate of 9%
	annual amounts of $60 for spouse, $200 for eligible children, and $200 for individuals claiming the disability tax credit

Tax Tip: File a tax return even if you have no income, to get the refundable tax credits.

Revised: September 20, 2024