Newfoundland and Labrador Provincial Budget Tax Updates 2025
Overview
On April 9, 2025, Newfoundland and labrador’s Finance Minister announces Budget 2025: Smarter. Stronger. Better. For the 2025–26 fiscal year, the province anticipates a $372 million deficit while projecting for 2026-2027 a $96 million surplus .
Recent tariffs imposed on Canadian exports to the U.S. and China have been largely factored into the economic forecast (i.e. the Budget 2025 includes a $200 million contingency fund to mitigate the potential impacts associated with the new US tariffs and counter-tariffs). Consumer Price Index (“CPI”) is expected to rise to 2.5%, primarily because Canadian counter-tariffs on U.S. goods are driving up domestic prices.
Personal Income Tax Measures
There are no proposed changes to personal income tax rates for 2025.
The income tax rates for the 2025 taxation year, based on your taxable income, are as follows:
The current personal combined income tax rates for top marginal tax rate in 2025 are outlined below:
Enhancement of the Seniors’ Benefit
The Seniors’ Benefit and its eligibility threshold will be indexed to the consumer price index.
Corporate Income Tax Measures
There are no proposed changes to corporate income tax rates for 2025.
The corporate income tax rates for Newfoundland and Labrador in 2025 are as follows:
For further information, visit https://www.gov.nl.ca/budget/2025/
[1] Applies to the first $500,000 of active taxable income of Canadian-Controlled Private Corporations (CCPCs).
