Key tax updates from Newfoundland and Labrador’s 2026 budget 

Newfoundland and Labrador tabled Budget 2026, “Opportunity for All of Us,” on April 29, 2026. The budget projects a deficit of $688 million for 2026–27, while the province’s economy is forecast to lead Canada in real GDP growth at 5.5% in 2026. The following summary outlines the key tax measures and other notable budget announcements. 

Personal income tax measures 

No provincial personal income tax rate changes were proposed in Budget 2026. The current combined federal and Newfoundland and Labrador top marginal personal income tax rates for 2026 are outlined below.  

Budget 2026 does not propose to increase any personal tax rates. Current top personal rates are as follows:

*Note: The top combined rate on regular income applies to taxable income above $1,141,275. 

The following personal tax measures were announced as part of Budget 2026: 

• Basic personal amount: The basic personal amount will increase to $15,000, reducing provincial income tax for all NL residents. 

• Seniors’ Benefit: The Seniors’ Benefit will increase by 20%, providing additional support to eligible seniors. 

• NL Child Benefit: The NL Child Benefit will be expanded to support an additional 3,000 children. 

• Tuition freeze: Tuition fees will be frozen at Memorial University of Newfoundland and the College of the North Atlantic. 

• Volunteer Firefighter and Search and Rescue Tax Credits: The Volunteer Firefighter and Search and Rescue Tax Credits will be doubled to $6,000. 

Corporate tax measures

Budget 2026 announces a phased reduction to the provincial small business tax rate. The current corporate income tax rates for 2026 are outlined below.

*Note: The combined federal small business rate applies to $500,000 of active business income. 

• Small business tax rate reduction: The provincial small business tax rate will be reduced by 0.5% per year over three years—from 2.5% to 2.0% effective January 1, 2026, to 1.5% effective January 1, 2027, and to 1.0% effective January 1, 2028. This phased reduction will lower the combined federal–provincial small business rate to 10.0% by 2028. 

What this means for you 

Budget 2026 delivers meaningful tax relief for individuals and businesses in Newfoundland and Labrador. Individuals will benefit from the increased basic personal amount, enhanced refundable credits and affordability measures, while businesses, particularly small businesses, should plan for the phased reduction in the provincial small business tax rate, which will lower their combined federal–provincial rate from 11.5% to 10.0% over three years. 

If you have questions about how Newfoundland and Labrador’s 2026 budget may affect you or your business, your Baker Tilly advisor can help you evaluate the potential impacts and identify planning opportunities. Connect with us to discuss your specific circumstances.