Newfoundland and Labrador budget 2024–25
Tax Alert 2024 No. 19, 21 March 2024
“Much progress has been made over the last four years under the Furey Government. We are transforming and improving health care with record investment, a focus on primary care and implementing the Health Accord.”
“Improving finances with near balanced budgets, a Future Fund, fiscal prudence, and debt management.
Transforming and improving the economy with strong growth and new investment in critical minerals, lower carbon oil development, wind-hydrogen, tourism, television and film development, to name a few.”
Newfoundland and Labrador Deputy Premier and Finance Minister Siobhan Coady
2024–25 budget speech
On 21 March 2024, Newfoundland and Labrador Deputy Premier and Finance Minister Siobhan Coady tabled the province’s fiscal 2024–25 budget. The budget contains no new taxes and no tax increases but includes a reduction in the small-business income tax rate.
The minister anticipates a deficit of $152 million for 2024–25, representing 1.5% of revenues. The province projects a balanced budget for 2025–26 and for the foreseeable future.
Following is a brief summary of the key tax measures.
Business tax measures
Corporate income tax rates
No changes are proposed to the general corporate income tax rate; however, the small-business tax rate has been reduced from 3% to 2.5%, effective 1 January 2024. No changes are proposed to the $500,000 small-business limit.
Newfoundland and Labrador’s (NL) current and proposed corporate income tax rates are summarized in Table A.
Table A – 2024 Newfoundland and Labrador corporate income tax rates1
1 The rates represent calendar-year-end rates unless otherwise indicated.
2 The federal corporate income tax rates for manufacturers of qualifying zero-emission technology are reduced to 7.5% for eligible income otherwise subject to the 15% federal general corporate income tax rate or 4.5% for eligible income otherwise subject to the 9% federal small-business corporate income tax rate. These reductions are not reflected in the combined federal and Newfoundland and Labrador rates above.
3 An additional federal tax applies to banks and life insurers at a rate of 1.5% on taxable income (subject to a $100 million exemption to be shared by group members).
Personal tax
Personal income tax rates
The budget does not include any changes to personal income tax rates.
The 2024 Newfoundland and Labrador personal income tax rates are summarized in Table B.
Table B – 2024 Newfoundland and Labrador personal income tax rates
1 Individuals resident in Newfoundland and Labrador on 31 December 2024 with taxable income up to $22,013 pay no provincial income tax as a result of a low-income tax reduction. The low-income tax reduction is clawed back for income in excess of $23,390 until the reduction is eliminated, resulting in an additional 16% of provincial tax on income between $23,391 and $29,478.
For taxable income in excess of $275,870, the 2024 combined federal–Newfoundland and Labrador personal income tax rates are outlined in Table C.
Table C – Combined 2024 federal and Newfoundland and Labrador personal income tax rates
1 The rate on capital gains is one-half the ordinary income tax rate.
Personal tax credits
This budget does not propose any changes to the Newfoundland and Labrador personal credits/amounts.
Learn more
For more information, please contact your EY or EY Law advisor or one of the following professionals:
Troy Stanley
+1 709 570 8290 | troy.a.stanley@ca.ey.com
Norman Byrne
+1 709 570 8285 | norman.j.byrne@ca.ey.com
Budget information: For up-to-date information on the federal, provincial and territorial budgets, visit ey.com/ca/Budget.