Provincial Tax: Understand how federal and provincial tax rates stack together with our Canadian Provincial Tax Guide.
Newfoundland and Labrador has one of the most progressive tax systems in Canada with eight provincial tax brackets — more than any other province. Rates range from 8.7% to 21.80%, and the top combined federal-provincial rate of 54.80% is among the highest in the country.
Newfoundland 2025 provincial tax brackets
| Taxable Income | Tax Rate |
|---|---|
| First $44,192 | 8.70% |
| $44,192 to $88,382 | 14.50% |
| $88,382 to $157,792 | 15.80% |
| $157,792 to $220,910 | 17.80% |
| $220,910 to $282,214 | 19.80% |
| $282,214 to $564,429 | 20.80% |
| $564,429 to $1,128,858 | 21.30% |
| Over $1,128,858 | 21.80% |
The basic personal amount in Newfoundland for 2025 is $10,818, meaning the first $10,818 of income is effectively tax-free at the provincial level.
Newfoundland 2024 provincial tax brackets
| Taxable Income | Tax Rate |
|---|---|
| First $43,198 | 8.70% |
| $43,198 to $86,395 | 14.50% |
| $86,395 to $154,244 | 15.80% |
| $154,244 to $215,943 | 17.80% |
| $215,943 to $275,870 | 19.80% |
| $275,870 to $551,739 | 20.80% |
| $551,739 to $1,103,478 | 21.30% |
| Over $1,103,478 | 21.80% |
The rates are unchanged between 2024 and 2025; only the bracket thresholds have been indexed for inflation.
Federal tax brackets 2025
| Taxable Income | Tax Rate |
|---|---|
| First $57,375 | 15.00% |
| $57,375 to $114,750 | 20.50% |
| $114,750 to $158,468 | 26.00% |
| $158,468 to $220,000 | 29.00% |
| Over $220,000 | 33.00% |
Federal tax brackets 2024
| Taxable Income | Tax Rate |
|---|---|
| First $55,867 | 15.00% |
| $55,867 to $111,733 | 20.50% |
| $111,733 to $154,906 | 26.00% |
| $154,906 to $220,000 | 29.00% |
| Over $220,000 | 33.00% |
Combined federal and Newfoundland marginal tax rates (2025)
| Taxable Income | Federal Rate | NL Rate | Combined Rate |
|---|---|---|---|
| First $44,192 | 15.00% | 8.70% | 23.70% |
| $44,192 to $57,375 | 15.00% | 14.50% | 29.50% |
| $57,375 to $88,382 | 20.50% | 14.50% | 35.00% |
| $88,382 to $114,750 | 20.50% | 15.80% | 36.30% |
| $114,750 to $157,792 | 26.00% | 15.80% | 41.80% |
| $157,792 to $158,468 | 26.00% | 17.80% | 43.80% |
| $158,468 to $220,000 | 29.00% | 17.80% | 46.80% |
| $220,000 to $220,910 | 33.00% | 17.80% | 50.80% |
| $220,910 to $282,214 | 33.00% | 19.80% | 52.80% |
| $282,214 to $564,429 | 33.00% | 20.80% | 53.80% |
| $564,429 to $1,128,858 | 33.00% | 21.30% | 54.30% |
| Over $1,128,858 | 33.00% | 21.80% | 54.80% |
The 54.80% top rate is one of the highest in Canada, exceeded only by Newfoundland’s complex bracket structure reaching that level. The eight brackets create a very gradual progression.
Example: Tax on $80,000 income in Newfoundland (2025)
Newfoundland provincial tax:
- $44,192 × 8.70% = $3,845
- ($80,000 - $44,192) × 14.50% = $5,192
- Total provincial tax: $9,037
Federal tax:
- $57,375 × 15.00% = $8,606
- ($80,000 - $57,375) × 20.50% = $4,638
- Total federal tax: $13,244
Combined tax on $80,000: approximately $22,281 (before credits)
After the basic personal amounts and other credits, the effective tax would be lower. At $80,000, NL residents pay more than those in Alberta, BC, or Yukon at the same income level.
NL Low-Income Tax Reduction
Newfoundland offers a Low-Income Tax Reduction for individuals earning less than approximately $21,755. This credit reduces or eliminates provincial income tax for lower-income residents, with the reduction phasing out as income increases.
How Newfoundland compares to other provinces
| Province | Top Combined Rate | Lowest Combined Rate |
|---|---|---|
| Nunavut | 44.50% | 19.00% |
| Yukon | 48.00% | 21.40% |
| Alberta | 48.00% | 25.00% |
| Ontario | 53.53% | 20.05% |
| British Columbia | 53.50% | 20.06% |
| Quebec | 53.31% | 26.53% |
| Nova Scotia | 54.00% | 23.79% |
| Newfoundland | 54.80% | 23.70% |
Newfoundland’s top rate of 54.80% is among the highest in Canada. However, the extensive bracket structure means the highest rates only apply at very high income levels (over $1.1 million).
Tax planning for Newfoundland residents
- RRSP contributions — among the most valuable in NL due to high marginal rates; see the RRSP contribution limit guide
- TFSA — tax-free growth is especially valuable with high marginal rates; see the TFSA contribution limit guide
- FHSA — first-time homebuyers can save up to $40,000 tax-free; see the FHSA calculator
- Average income — see average income in Newfoundland to understand where you stand
Frequently asked questions
What are the Newfoundland tax brackets for 2025?
NL has eight brackets from 8.7% on the first $44,192 to 21.80% on income over $1,128,858.
What is the top combined tax rate in Newfoundland?
The top combined rate is 54.80% on income over $1,128,858, one of the highest in Canada.
Does Newfoundland have a surtax?
No, but the eight-bracket system with rates up to 21.80% achieves a very progressive structure that effectively serves the same purpose.
Related guides
- Average income in Newfoundland
- Newfoundland sales tax calculator
- Newfoundland mortgage rates
- RRSP contribution limit guide
- TFSA contribution limit guide
- Income percentile calculator
Tax brackets across Canada
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