Newfoundland Income Tax 2026 | NL Tax Brackets & Rates
Updated
Newfoundland and Labrador Income Tax 2026
Newfoundland and Labrador has 7 provincial tax brackets — more than any other province — with rates ranging from 8.7% to 21.8%. While the province has one of the lowest starting rates in Canada, its upper brackets are among the highest. NL holds the distinction of having the highest top combined federal-provincial marginal rate in Canada at 54.8% on income over $551,739.
Newfoundland Tax Brackets 2026
Taxable Income
NL Rate
Up to $43,198
8.7%
$43,198 – $86,395
14.5%
$86,395 – $154,244
15.8%
$154,244 – $215,943
17.8%
$215,943 – $275,870
19.8%
$275,870 – $551,739
20.8%
Over $551,739
21.8%
Combined Federal + NL Rates
Taxable Income
Federal
NL
Combined
Up to $43,198
15%
8.7%
23.7%
$43,198 – $55,867
15%
14.5%
29.5%
$55,867 – $86,395
20.5%
14.5%
35%
$86,395 – $111,733
20.5%
15.8%
36.3%
$111,733 – $154,244
26%
15.8%
41.8%
$154,244 – $155,625
26%
17.8%
43.8%
$155,625 – $173,205
29%
17.8%
46.8%
$173,205 – $215,943
33%
17.8%
50.8%
$215,943 – $275,870
33%
19.8%
52.8%
$275,870 – $551,739
33%
20.8%
53.8%
Over $551,739
33%
21.8%
54.8%
Tax by Income Level
Taxable Income
NL Tax
Federal Tax
Total Tax
Effective Rate
$30,000
$1,376
$2,813
$4,189
14.0%
$50,000
$3,727
$5,813
$9,540
19.1%
$75,000
$7,350
$10,281
$17,631
23.5%
$100,000
$11,302
$16,181
$27,483
27.5%
$125,000
$15,252
$22,681
$37,933
30.3%
$150,000
$19,202
$29,181
$48,383
32.3%
$200,000
$28,090
$45,681
$73,771
36.9%
$250,000
$38,090
$62,181
$100,271
40.1%
Estimates based on 2026 rates before non-refundable credits other than the basic personal amount.
Newfoundland Tax Credits
Non-Refundable Credits
Credit
2026 Amount
Basic personal amount
$10,818
Spouse or common-law partner
Up to $9,179
Eligible dependant
Up to $9,179
Age amount (65+)
Up to $6,916
Disability amount
$9,000
Caregiver amount
Up to $5,000
Volunteer firefighter / search & rescue
$3,000
Note: NL’s basic personal amount of $10,818 is lower than the national average, which means provincial tax kicks in at a lower income than most provinces.
NL-Specific Credits and Benefits
Credit
Details
NL HST credit
Refundable quarterly credit for low-income residents
Direct equity tax credit
20–35% credit for investments in eligible NL small businesses
Labrador tax credit
Additional credit for residents of Labrador
Resort property owner credit
Available to eligible property owners in designated resort areas
Newfoundland vs Other Provinces at $100,000 Income
Province
Provincial Tax
Federal Tax
Total Tax
Effective Rate
Alberta
$5,900
$16,181
$22,081
22.1%
BC
$5,800
$16,181
$21,981
22.0%
Ontario
$8,190
$16,181
$24,371
24.4%
Newfoundland
$11,302
$16,181
$27,483
27.5%
New Brunswick
$11,346
$16,181
$27,527
27.5%
PEI
$12,165
$16,181
$28,346
28.3%
At $100,000, Newfoundland and New Brunswick are nearly identical in total tax burden. NL’s lower starting bracket (8.7% vs NB’s 9.4%) provides slight relief at lower incomes.
Tax Planning in Newfoundland
RRSP Savings at $100,000 Income (Marginal Rate: 36.3%)
RRSP Contribution
Tax Saved
Net Cost of Contribution
$5,000
$1,815
$3,185
$10,000
$3,630
$6,370
$18,000
$6,534
$11,466
$27,000 (approx. max)
$9,801
$17,199
At incomes over $111,733 the combined rate jumps to 41.8%, making RRSP contributions considerably more valuable.
Investment Income at $100,000 in Newfoundland
$10,000 Income Type
NL Tax
Federal Tax
Total Tax
Interest / employment
$1,580
$2,050
$3,630
Eligible dividends
$255
$1,100
$1,355
Capital gains (50% inclusion)
$790
$1,025
$1,815
Newfoundland Sales Tax (HST)
Tax Component
Rate
Federal GST
5%
NL provincial component
10%
Total HST
15%
Newfoundland and Labrador harmonized its provincial sales tax with the federal GST in 1997. The 15% HST rate applies to most goods and services, with standard exemptions for basic groceries, prescription drugs, and certain medical equipment.