2021 Newfoundland and Labrador Budget Highlights
2021 Newfoundland and Labrador Budget Highlights
Newfoundland and Labrador Finance Minister Siobhán Coady tabled the province’s 2021 Budget. Titled Change Starts Here, Budget 2021 focuses on emerging from COVID-19 and investing in health and education to build stronger communities.
On Monday, May 31, 2021, Newfoundland and Labrador Finance Minister Siobhán Coady tabled the province’s 2021 Budget. Titled Change Starts Here, Budget 2021 focuses on emerging from COVID-19 and investing in health and education to build stronger communities.
The province projects a deficit of $826 million for 2021-22 and forecasts a surplus by 2026-27.
The following are highlights of the tax measures announced:
A. Corporate Tax Measures
Corporate Tax Rates
No new corporate income tax rate changes were announced in this year’s budget. The current corporate income tax rates for 2021 are outlined below:
|
|
Small Business Rate |
General Rate |
||
|
|
Rate |
Threshold |
Non-M&P |
M&P |
|
Federal |
9.0% |
$500,000 |
15.0% |
15.0% |
|
NL |
3.0% |
$500,000 |
15.0% |
15.0% |
|
Combined |
12.0% |
|
30.0% |
30.0% |
B. Personal Tax Measures
Personal Tax Rates
Budget 2021 introduced new income tax brackets for high income earners, effective January 1, 2022. There are no changes to other provincial income tax brackets. The new brackets and rates for 2022 are as follows:
|
Bracket |
Current |
Budget 2021 |
|
Up to $135,973 |
|
No change |
|
$135,974 - $190,363 |
17.3% |
17.8% |
|
$190,364 - $250,000 |
18.3% |
19.8% |
|
$250,001 - $500,000 |
18.3% |
20.8% |
|
$500,001 - $1,000,000 |
18.3% |
21.3% |
|
More than $1,000,000 |
18.3% |
21.8% |
Physical Activity Tax Credit
Budget 2021 announced a new, refundable Physical Activity Tax Credit. This tax credit will provide up to $2,000 per family and is intended as a helpful incentive for families as they look to access sport and recreational activities.
C. Other Measures
Sugar Sweetened Beverage Tax
Effective April 1, 2022, the province will implement a 20¢ per litre sugar sweetened beverage tax.
Tobacco Tax
Budget 2021 announced a 3¢ per cigarette and a 6¢ per gram increase on fine cut tobacco. The rebate rate for Labrador Border Zones will also increase by 3¢ for cigarettes and 6¢ per gram for fine cut tobacco.
Harmonized Sales Tax (HST)
Budget 2021 announced plans to evaluate increases to the HST.
MNP 2021 Federal Budget Highlights
Contact:
Contact your local MNP Advisor for more information.
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