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:
|
Personal (combined) federal and Newfoundland and Labrador top marginal tax rates |
|
|
|
Rate |
|
Interest/regular income |
54.80% |
|
Capital gains |
27.40% |
|
Eligible dividends |
46.20% |
|
Non‑eligible dividends |
48.96% |
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:
|
|
Small business corporations |
General corporations |
||
|
|
Rate |
Threshold |
Non‑M&P |
M&P |
|
Newfoundland and Labrador |
2.5% |
$500,000 |
15.0% |
15.0% |
|
Combined federal and NL |
11.5% |
$500,000 |
30.0% |
30.0% |
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.
Meet the Author
Sean Grant-Young
Information is current to March 28, 2024. The information contained in this release is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavour to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act upon such information without appropriate professional advice after a thorough examination of the particular situation.