Results are estimates for educational purposes only. Based on 2026 federal and Newfoundland & Labrador tax rates. Always consult a qualified accountant.
Newfoundland & Labrador income tax overview
Newfoundland & Labrador has a progressive provincial tax system with rates up to 21.8% for the very highest earners across eight brackets, one of the most granular bracket systems in Canada. The province's economy has historically centred on fishing, and more recently on offshore oil production, which has driven significant economic volatility tied to global energy prices. St. John's, the capital, is the largest city and serves as the main economic and administrative hub. Newfoundland & Labrador uses HST at 15%, and the province has faced ongoing fiscal pressure due to its smaller and aging population combined with the costs of maintaining infrastructure across a geographically dispersed, often remote population.
2026 Newfoundland & Labrador tax rate
Tax rate
Taxable income
8.7%
Up to $44,192
14.5%
$44,193 – $88,382
15.8%
$88,383 – $157,792
17.8%
$157,793 – $220,910
19.8%
$220,911 – $282,214
20.8%
$282,215 – $564,429
21.3%
$564,430 – $1,128,858
21.8%
Over $1,128,858
Worked example: $65,000 salary in Newfoundland & Labrador
A $65,000 salary in Newfoundland & Labrador results in approximately $5,650 in provincial tax (effective ~8.7%), plus roughly $7,800 federal tax, $3,665 CPP, and $1,079 EI. Annual take-home is approximately $46,806, or $1,800 bi-weekly.
Key facts: 8 provincial brackets — most granular in Canada · Offshore oil drives economic volatility · 15% HST
Frequently asked questions — Newfoundland & Labrador income tax
The province uses eight brackets, more than most other provinces, to provide a more gradual progression of tax rates as income rises, particularly at the very high end where additional brackets were added for the highest earners.
Offshore oil production has been a major economic driver and revenue source for the province, but global oil price fluctuations have caused significant volatility in provincial finances over the past decade.
No. Newfoundland & Labrador municipalities do not levy local income taxes.
The province uses HST at 15%, consistent with most of Atlantic Canada.
A smaller, more dispersed, and aging population combined with the high cost of maintaining infrastructure and services across remote communities has created ongoing budget challenges for the province.
Compare Newfoundland & Labrador to other provinces