2024 Newfoundland and Labrador provincial budget tax highlights

On March 21, the Newfoundland and Labrador government released its 2024 budget. The following are highlights of the key tax measures.

Personal tax measures

No personal income tax rate changes were announced in this year’s budget. The current personal combined income tax rates for 2024 are outlined below:

Corporate tax measures

The budget reduces the small business income tax rate to 2.5 from 3 per cent, effective Jan. 1, 2024. As a result, Newfoundland and Labrador’s corporate income tax rates are outlined below:

Previous measures

The budget announced the province’s intention to continue tax incentive and benefit measures detailed below:

• All Spend Film and Video Production Tax Credit ⁠—⁠ refundable tax credit of up to 40 per cent of eligible production costs with a maximum tax credit of $10 million annually per project.
• Green Technology Tax Credit ⁠—⁠ refundable tax credit of 20 per cent of specific capital costs for green activities such as equipment for energy conservation, clean energy generation and efficient use of fossil fuels.
• Physical Activity Tax Credit ⁠—⁠ refundable tax credit up to $348 for families for recreational and sporting activities.
• An 8.05 cent per litre reduction in the provincial tax on gas.
• Elimination of the retail sales tax on home insurance.

Next steps

Contact your Baker Tilly advisor to learn more about how we can help you navigate the complexities of the Canadian tax system.