Provincial tax
Newfoundland and Labrador Business Tax Rates for 2026
Newfoundland and Labrador business taxes for 2026: the 2% small business rate, 15% HST, the payroll tax over $2,000,000 and eight brackets.
Sources checked October 20264 min read
Corporate tax rates in Newfoundland and Labrador
Newfoundland and Labrador lowered its small business rate by half a point to 2% on January 1, 2026, so a corporation pays 11% combined on its first $500,000 for the whole of 2026.
The general rate of 15% brings the combined rate on other income to 30%, level with Prince Edward Island at the top of the country.
| Rate | Newfoundland and Labrador | With federal tax |
|---|---|---|
| Small business rate | 2% | 11% |
| General rate | 15% | 30% |
| Income the small business rate covers | $500,000 | Same federal limit |
Key points
- 11% combined on the first $500,000 of active business income
- 30% combined general corporate rate
- 15% HST on one return filed with the CRA
- 2% payroll tax above $2,000,000 of payroll
Sales tax in Newfoundland and Labrador
HST is 15%, 10% provincial and 5% federal, on one return with the CRA and with input tax credits for HST paid on business costs.
Newfoundland and Labrador income tax brackets for 2026
Eight brackets, the most in Canada. The province added rates above half a million dollars, so its top rate of 21.8% starts above $1,141,275, and the combined top rate of 54.8% is the highest in the country.
| Taxable income from | Up to | Rate |
|---|---|---|
| $0 | $44,678 | 8.7% |
| $44,678.01 | $89,354 | 14.5% |
| $89,354.01 | $159,528 | 15.8% |
| $159,528.01 | $223,340 | 17.8% |
| $223,340.01 | $285,319 | 19.8% |
| $285,319.01 | $570,638 | 20.8% |
| $570,638.01 | $1,141,275 | 21.3% |
| $1,141,275.01 | No upper limit | 21.8% |
Payroll costs in Newfoundland and Labrador
Employers pay the Health and Post Secondary Education Tax at 2% on remuneration paid in the province above a $2,000,000 exemption. Associated employers file an allocation agreement to share that exemption.
Workplace insurance runs through WorkplaceNL.
Filing in Newfoundland and Labrador
Corporate tax and HST go to the CRA. The payroll tax is the provincial account, administered by the Department of Finance, and it only begins once payroll passes the exemption, so many small employers never need it.
Newfoundland and Labrador questions, answered
What is the small business tax rate in Newfoundland and Labrador?
11% combined for 2026, 2% provincial and 9% federal, on the first $500,000.
Is there a payroll tax in Newfoundland and Labrador?
Yes, 2% on payroll above $2,000,000 a year, paid by the employer.
What is the top personal tax rate in Newfoundland and Labrador?
21.8% provincial above $1,141,275, or 54.8% with federal tax.
More for Newfoundland and Labrador businesses
Official sources
Call or email and we will tell you which records we need and what the work costs, in writing, before anything starts.
Important. This article provides general educational information, not legal or tax advice for a specific business. Rules, administrative policies, rates and deadlines can change. Confirm your facts and current obligations with the responsible government agency and a qualified adviser.