Newfoundland and Labrador Income Tax Calculator 2026
Enter your salary to see your 2026 federal and Newfoundland and Labrador income tax, CPP and EI, and what you actually take home.
2026 rates · verified Oct 21–23, 2026
Your take-home pay
$45,762.47 a year
$1,760.10 every two weeks
| Gross income | $60,000.00 |
|---|---|
| Federal income tax | −$5,338.29 |
| Newfoundland and Labrador income tax | −$4,559.49 |
| CPP | −$3,361.75 |
| CPP2 | −$0.00 |
| EI | −$978.00 |
| CPP on self-employment (both halves) | $0.00 |
| Take-home pay | $45,762.47 |
- Take-home
- Income tax
- CPP
- EI
- Average tax rate
- 16.5%
- Marginal tax rate
- 35%
Estimated refund
Your inputs
Calculated in your browser. Your numbers never leave your device.
Confirmed for 2027: the employee CPP rate drops from 5.95% to 5.75% on earnings up to $76,700, and the EI rate rises from 1.63% to 1.64% on earnings up to $70,800. The calculators move to 2027 rates from January 1, once the rest of the 2027 figures are published. Sources: Finance Canada (Bill C-30), CRA’s YMPE table, CRA’s EI rates.
Your tax brackets
Federal: your taxable income of $59,435 reaches the 20.5% bracket; credits cover the first $21,728, and the tax is $5,338.29. Newfoundland and Labrador: your taxable income of $59,435 reaches the 14.5% bracket; credits cover the first $16,869, and the tax is $4,559.49.
Tax from each bracket
| Bracket | Rate | Your income in it | Covered by credits | Tax |
|---|
2026 change: Newfoundland and Labrador raised its basic personal amount from $11,188 to $13,094 for all of 2026 (announced April 29, 2026). From July, paycheques use a catch-up amount of $15,000 to make up for the first six months. This calculator shows the full-year 2026 tax.
How this is calculated
We use the same formulas employers use for payroll: CRA’s T4127 Payroll Deductions Formulas, with the full-year 2026 figures for Newfoundland and Labrador from the July 2026 edition. We tested the formulas against CRA’s Payroll Deductions Online Calculator for every province and territory, and they match to the cent.
- CPP: 5.95% of your earnings above $3,500, up to $74,600. The most anyone pays is $4,230.45.
- CPP2: 4% of earnings between $74,600 and $85,000, up to $416.00.
- EI: 1.63% of earnings up to $68,900, up to $1,123.07.
- Taxable income: your income minus the “enhanced” part of CPP (the 1% first additional contribution) and all of CPP2. Those parts are a tax deduction, not a credit.
- Tax before credits: each slice of taxable income is taxed at its bracket’s rate, federally and by Newfoundland and Labrador (tables below).
- Federal credits at 14%: the basic personal amount ($16,452, reduced gradually to $14,829 for net income between $181,440 and $258,482), the Canada employment amount ($1,501), the base part of your CPP, and your EI.
- Newfoundland and Labrador credits at 8.7%, Newfoundland and Labrador’s lowest rate: the Newfoundland and Labrador basic personal amount ($13,094), the base part of your CPP, and your EI.
- Take-home pay = income − federal tax − Newfoundland and Labrador tax − CPP − CPP2 − EI.
| Taxable income | Rate |
|---|---|
| $0 to $58,523 | 14% |
| $58,523.01 to $117,045 | 20.5% |
| $117,045.01 to $181,440 | 26% |
| $181,440.01 to $258,482 | 29% |
| Over $258,482 | 33% |
| Taxable income | Rate |
|---|---|
| $0 to $44,678 | 8.7% |
| $44,678.01 to $89,354 | 14.5% |
| $89,354.01 to $159,528 | 15.8% |
| $159,528.01 to $223,340 | 17.8% |
| $223,340.01 to $285,319 | 19.8% |
| $285,319.01 to $570,638 | 20.8% |
| $570,638.01 to $1,141,275 | 21.3% |
| Over $1,141,275 | 21.8% |
Worked example: $60,000 salary
An employee in Newfoundland and Labrador earning $60,000 a year with no other income or deductions:
| CPP: 5.95% × ($60,000 − $3,500) | $3,361.75 |
|---|---|
| EI: 1.63% × $60,000 | $978.00 |
| Taxable income: $60,000 − enhanced CPP of $565.00 | $59,435.00 |
| Federal tax after credits | $5,338.29 |
| Newfoundland and Labrador tax after credits | $4,559.49 |
| Take-home pay | $45,762.47 |
Federal tax before credits is 14% of the first $58,523 plus 20.5% of the remaining $912.00, less 14% credits on the basic personal amount, the Canada employment amount, base CPP and EI. In total, 76.3% of the salary reaches your bank account.
Newfoundland and Labrador tax on $60,000, step by step
| 8.7% on the first $44,678 | $3,886.99 |
|---|---|
| 14.5% on the next $14,757 (above $44,678) | $2,139.77 |
| Tax before credits | $6,026.76 |
| Basic personal amount credit: 8.7% × $13,094.00 | −$1,139.18 |
| CPP and EI credits: 8.7% × ($2,796.75 base CPP + $978.00 EI) | −$328.40 |
| Rounding in CRA’s formula | +$0.31 |
| Newfoundland and Labrador tax | $4,559.49 |
CRA’s payroll formula uses bracket constants rounded to the dollar, so its tax before credits is $6,027.08, $0.32 more than the slices above. The other $0.01 in the rounding line comes from rounding each step to the cent.
Newfoundland and Labrador’s low-income tax reduction
Newfoundland and Labrador takes up to $997 off provincial tax for people with low incomes, more for a couple. It isn’t in payroll deductions, so this calculator leaves it out; you get it when you file your return, as a smaller tax bill or a bigger refund. It can bring Newfoundland and Labrador tax to zero, but not below. The figures here are from the 2025 form, the latest.
For a single person it’s the full $997 up to $23,928 of net income, then shrinks by 16% of every dollar above that, reaching zero at $30,159. With a spouse or partner (or an eligible dependant) it’s up to $1,554, based on your combined net income, and ends at $50,173.
| Net income | Single | Couple |
|---|---|---|
| $18,928 | $997 | $1,554 |
| $23,928 | $997 | $1,554 |
| $27,000 | $505 | $1,554 |
| $30,200 | $0 | $1,554 |
| $40,460 | $0 | $1,554 |
| $45,300 | $0 | $780 |
| $50,200 | $0 | $0 |
Couples and single parents start losing it at $40,460 of adjusted family income instead of $23,928, but it shrinks fast: 16 cents for every dollar over.
Source: CRA – Form NL428, Newfoundland and Labrador Tax (2025), low-income tax reduction.
Take-home pay on $60,000 in other provinces
- Alberta: $47,690.66
- British Columbia: $47,754.95
- Manitoba: $45,772.91
- New Brunswick: $46,047.30
- Northwest Territories: $47,937.94
- Nova Scotia: $44,726.05
- Nunavut: $48,772.86
- Ontario: $47,340.23
- Prince Edward Island: $45,446.67
- Quebec: $45,328.29
- Saskatchewan: $46,519.94
- Yukon: $47,885.39
Self-employment, capital gains and dividends
Open “Self-employment and investment income” to add them. Each kind of income is taxed differently, and all three examples below start from the same $60,000.
Self-employment income
When you work for yourself you pay both halves of CPP: 11.9% of net earnings between $3,500 and $74,600 (up to $8,460.90), plus 8% CPP2 up to $85,000 (up to $832.00). You pay it when you file. Half of the base part is a 14% credit (line 31000); the other half and all the enhanced parts are deducted from income (line 22200). There’s no EI and no Canada employment amount.
On $60,000 of net business income: CPP $6,723.50, a deduction of $3,926.75 so taxable income is $56,073.25, federal tax $5,155.43 and Newfoundland and Labrador tax$4,157.13. That leaves $43,963.94, compared with $45,762.47 on the same salary.
Capital gains
Only 50% of a capital gain is taxable (the proposed two-thirds rate was cancelled in March 2025). With a $10,000 gain on top of a $60,000 salary, $5,000.00 is added to taxable income, which adds $1,750.00 of tax. No CPP or EI is charged on it.
Dividends
Dividends from Canadian companies are “grossed up” (eligible dividends by 38%, others by 15%) and taxed at your normal rates. Dividend tax credits then come off: federally 15.0198% and 9.0301% of the grossed-up amount, and in Newfoundland and Labrador 6.3% and 3.2%. The credits can bring tax to zero, but not below.
$10,000 of eligible dividends on top of a $60,000 salary becomes $13,800.00 of taxable income and adds $1,887.87 of tax (federal $6,094.56, Newfoundland and Labrador $5,691.09). The same $10,000 of other (non-eligible) dividends adds $2,618.54.
What changed in Newfoundland and Labrador’s income tax for 2026
Newfoundland and Labrador’s basic personal amount is $13,094 for 2026, up from $11,067 in 2025 (+$2,027, or 18.3%). Its brackets and most credit amounts were indexed by 1.1%.
- On April 29, 2026, Newfoundland and Labrador raised its 2026 basic personal amount from $11,188 (its January figure) to $13,094 for the whole year. Paycheques didn’t change until July, so from then they use $15,000 to catch up on the first six months.
- Brackets and other credits were indexed by only 1.1% for 2026, about half the rate of most provinces.
- The Newfoundland and Labrador disability benefit was introduced in 2025, and the seniors’ benefit is now raised every July with the cost of living.
Source: CRA – T4127 Payroll Deductions Formulas, January and July 2026 editions (provincial changes, Tables 8.2 and 8.23); checked October 23, 2026.
What the Newfoundland and Labrador Budget 2026 means for your taxes
Tabled April 29, 2026. Measures for individuals:
- The budget raises the basic personal amount “to $15,000”. In CRA’s payroll formulas that works out to $13,094 for 2026 as a whole (up from $11,188), with paycheques using $15,000 from July.
- Doubles the volunteer firefighter and search and rescue tax credits to $6,000.
- Raises the seniors’ benefit by 20%, and extends the Newfoundland and Labrador child benefit to 3,000 more children.
- Permanently cuts the provincial gas tax to 7.5 cents a litre on gasoline and 9.5 cents on diesel, and lowers the small business tax rate to 2% for 2026, 1.5% for 2027 and 1% for 2028.
Source: Government of Newfoundland and Labrador – Budget 2026 news release (April 29, 2026); CRA T4127 (July 2026); checked October 23, 2026.
Newfoundland and Labrador benefits paid through your tax return
The CRA pays these for Newfoundland and Labrador, based on the income on your tax return, so they depend on filing every year. Amounts are for July 2026 to June 2027; none of them is included in the take-home pay above.
- Newfoundland and Labrador child benefit
- $157.33 a month for the first child, $166.83 for the second, $179.16 for the third and $192.50 for each additional child, reduced once adjusted family net income passes $20,397. Families can also get the early childhood nutrition supplement of up to $150 a month for each child under five.
- Income supplement
- Up to $520 a year for a single person or $589 for a couple, plus $231 per child under 19, for low-income people. Paid quarterly with the federal Canada Groceries and Essentials Benefit.
- Seniors’ benefit
- $1,882 a year for seniors 64 or older with adjusted family net income up to $30,409, with a partial amount up to $46,549.
- Disability benefit
- Up to $400 a month for adults 18 to 64 approved for the disability tax credit, in full below $29,402 of adjusted family net income and partly up to $42,404 (single) or $55,404 (a couple who both qualify).
Source: CRA – Provincial and territorial programs: Province of Newfoundland and Labrador; checked October 23, 2026.
Newfoundland and Labrador tax credits worth knowing about
This calculator only uses the basic personal amounts. These Newfoundland and Labrador credits can lower your tax further, or come back as a refund. Details are from the 2025 tax year, the latest return.
- Child care amount
- Newfoundland and Labrador gives a provincial credit on the same child care expenses you deduct on your federal return.
- Low-income tax reduction
- Reduces Newfoundland and Labrador tax for low-income residents; its amounts increased for 2025. A couple decides who claims it, and the other can use any unused part.
Source: CRA – Newfoundland and Labrador tax information for 2025; checked October 23, 2026.
What this calculator assumes
- Your job income is from one employer in Newfoundland and Labrador, for the full year. Self-employment income is your net profit (a loss isn’t supported). Capital gains leave out losses carried forward, the lifetime capital gains exemption and the principal residence exemption. Dividends are from Canadian corporations.
- You claim only the basic personal amounts on your TD1 forms. Other credits (tuition, disability, dependants) would lower your tax.
- It doesn’t include pension contributions, union dues, benefits, or other payroll deductions. You can add an RRSP deduction under “RRSP and tax already paid”.
- The refund or amount owing compares the tax you enter with the tax on this income alone. Other income, other credits, or CPP and EI overpaid by working for two employers would change it.
- It doesn’t include the federal top-up tax credit, which only applies to people claiming more than $58,523 in non-refundable credits, or refundable benefits like the Canada workers benefit.
- Pay-period amounts are the annual amount divided evenly.
Frequently asked questions
What is the difference between my average and marginal tax rate?
Your average rate is your total income tax divided by your income: what you pay overall. Your marginal rate is the tax on your next dollar, which is what matters for a raise, overtime or an RRSP deduction. At $100,000 in Newfoundland and Labrador the average rate is 23.6% but the marginal rate is 36.3%, so a $1,000 RRSP contribution would cut your tax by about $363.
Will I get a tax refund?
Open “RRSP and tax already paid” and enter the income tax from box 22 of your T4 (or the year-to-date tax on your last pay stub). We compare it with the tax for the year: if more was deducted, the difference is your estimated refund. An RRSP deduction is the usual reason: on $60,000 in Newfoundland and Labrador, a $5,000 RRSP deduction cuts tax from $9,897.78 to $8,413.51, so $1,484.27 comes back as a refund if your employer didn’t take it into account.
How much is take-home pay on $40,000 a year in Newfoundland and Labrador?
On $40,000 a year you take home about $32,389.83, or $2,699.15 a month. Income tax is $4,786.42 ($2,095.16 of it Newfoundland and Labrador tax), CPP is $2,171.75 and EI is $652.00. Newfoundland and Labrador’s basic personal amount is $13,094, so that much income is free of Newfoundland and Labrador tax.
Is Newfoundland and Labrador’s basic personal amount $13,094 or $15,000?
Both numbers are real. The increase announced in Budget 2026 on April 29 applies to the whole of 2026, which CRA sets at $13,094 (up from $11,188). Payroll used the old amount until July, so from then employers use $15,000 to catch up. Your 2026 tax return uses $13,094, the figure in this calculator.
Why is my paycheque different from this calculator?
Your employer may deduct things this calculator leaves out, such as a pension plan, union dues, benefits or extra tax you asked for on your TD1. Pay-period amounts here are the annual figure divided evenly; a real paycheque is calculated one period at a time, so it can differ by a few dollars. If you earn more than the CPP and EI maximums, those deductions stop partway through the year, so your later paycheques are bigger.
Rates for tax year 2026, verified to · Page updated
Sources
Federal
- CRA – 2025 Schedule 8 (5000-S8), Part 4, lines 10–17; canada.ca – CPP contributions (2026: 11.9%, maximum $8,460.90; CPP2 8%, maximum $832) · checked
- CRA – 2025 Federal Worksheet (5000-D1), lines 12000/12010 (138%, 115%) and line 40425 (15.0198%, 9.0301%); Income Tax Act s. 121 · checked
- CRA – 2025 Worksheet NL428 (5001-D), line 61520 · checked
- Prime Minister’s Office – Prime Minister Carney cancels proposed capital gains tax increase (March 21, 2025); CRA administers the enacted one-half rate · checked
- CRA – Provincial and territorial programs: Province of Newfoundland and Labrador · checked
- CRA – Newfoundland and Labrador tax information for 2025 · checked
- CRA – Form NL428, Newfoundland and Labrador Tax (2025), low-income tax reduction · checked
Payroll formulas
- CRA T4127 Payroll Deductions Formulas, 122nd Edition, effective January 1, 2026 · checked
- CRA T4127 Payroll Deductions Formulas, 123rd Edition, effective July 1, 2026 (full-year 2026 figures, Option 2) · checked to
- Government of Newfoundland and Labrador – Budget 2026 news release (April 29, 2026); CRA T4127 (July 2026) · checked