Newfoundland and Labrador Provincial Budget Tax Updates 2024-2025
Overview
On March 21, 2024, Newfoundland and Labrador’s government has presented its 2024-2025 budget “Transforming Our Health. Our Economy. Our Province.” This comprehensive summary highlights the key changes that will influence the Newfoundland and Labrador tax environment in the coming years.
Personal Income Tax Measures
There are no proposed changes to personal income tax rates for 2024.
The income tax rates for the 2024 taxation year, based on your taxable income, are as follows:
| Taxable income | Rate |
| $43,198 or less | 8.70% |
| More than $43,198 but not more than $86,395 | 14.50% |
| More than $86,395 but not more than $154,244 | 15.80% |
| More than $154,244 but not more than $215,943 | 17.80% |
| More than $215,943 but not more than $275,870 | 19.80% |
| More than $275,870 but not more than $551,739 | 20.80% |
| More than $551,739 but not more than $1,103,478 | 21.30% |
| More than $1,103,478 | 21.80% |
The current personal combined income tax rates for top marginal tax rate in 2024 are outlined below:
| Taxable income | Rate income over $275,870 up to $551,739 | Rate income over $551,739 up to $1,103,478 | Rate income over $1,103,478 |
| Interest/regular income | 53.80% | 54.30% | 54.80% |
| Capital gains | 26.90% | 27.15% | 27.40% |
| Eligible dividends | 44.82% | 45.51% | 46.20% |
| Non‑eligible dividends* | 47.81% | 48.38% | 48.96% |
* Subject to change if adjustments are made to the dividend tax credit rate for non-eligible dividends following the reduction of the small business income tax rate.
Corporate Income Tax Measures:
Small Business Corporate Tax Rate Reduction
The budget announces a reduction of the small business corporate tax rate, effective January 1, 2024, from 3 per cent to 2.5 per cent on the first $500,000 of active business income. This will result in savings for approximately 6,200 small businesses.
The corporate income tax rates for Newfoundland and Labrador in 2024, once the measure is enacted, are as follows:
| Provincial tax rate (2023) | Provincial tax rate (2024) | Federal and provincial combined tax rate (2024) | |
| Small-business tax rate | 3.00% | 2.50% | 11.5% |
| General manufacturing and processing tax rate | 15% | 15% | 30% |
| General corporate tax rate | 15% | 15% | 30% |
For further information, visit https://www.gov.nl.ca/budget/2024/
