Newfoundland and Labrador Income Tax Brackets Changes
Income tax brackets in Newfoundland and Labrador will be increasing by 0.4% in 2021. The basic personal amount will also increase by 0.4%.
Similar to other provinces, Newfoundland's CPP contribution rate is 5.45%, and EI premiums are 1.58%.
Newfoundland Personal Amounts 2021
| 2020 | 2021 | |
|---|---|---|
| Basic Personal Amount | $9,498 | $9,536 |
| Spouse/Common-Law Partner | $8,572 | $8,572 |
| Eligible Dependant | $8,572 | $8,572 |
Newfoundland and Labrador Low-Income Tax Reduction
The low income tax reduction provides a non-refundable tax credit depending on your income. The amount of the low-income tax reduction is:
- $859 plus $479 for eligible spouse/common-law partner plus $479 for an eligible dependent, up to a maximum reduction of $1,338.
- Reduced from this reduction is your net family income minus $20,537 if single or $34,727 if in a household, multiplied by the applicable rate of 16%.
- If the result of the reduced reduction is greater than zero, then subtract your family income by this reduction.
The result of this is the tax credit you will receive for the low-income tax reduction.