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Last updated: Mar. 30, 2023
Newfoundland and Labrador Budget 2023 Highlights
The Newfoundland and Labrador Budget was released by Finance Minister, Siobhan Coady on March 23, 2023.
The Budget is anticipated to result in a surplus of $784 million for 2022 – 2023, and a deficit of $160 million for the 2023-2024 budget year, and $297 million for the 2024-2025 year.
There were no corporate or personal tax rate changes made, but several credits were expanded or extended.
Here we’ll provide a summary of key highlights of Newfoundland and Labrador’s 2023 Provincial Budget.
Corporate Tax
Corporate tax rates for Newfoundland and Labrador:
| Corporate Income | Newfoundland and Labrador Tax Rate | Combined Provincial + Corporate Rate |
| General | 15% | 30% |
| General (zero-emission technology manufacturer) |
15% | 22.5% |
| Small Business* | 3% | 12% |
| Small Business* (zero-emission technology manufacturer) |
3% | 7.5% |
*tax rate on the first $500,000 of active business income, shared amongst an associated group.
Corporate Tax Measures
All Spend Film and Video Production Tax Credit Increase
The existing All Spend Film and Video Production Tax Credit was increased from 30% to 40%. This credit applies to qualified production costs, providing a maximum credit of $10 million annually per project as $10 million available through the Film and Television Equity Investment Program.
Manufacturing and Processing Investment Tax Credit
Newfoundland and Labrador continue to offer the Manufacturing and Processing Investment Tax Credit. It is a 10% credit that assists the manufacturing and production, fishery, farming, and forestry sectors invest in equipment.
Corporations that invest in eligible capital property for use in qualified activities can claim a credit of 10% of the capital cost to reduce the provincial tax otherwise payable and in some cases may be refunded a portion of the credit.
Personal Tax Rates
There are no changes to personal tax rates.
| Taxable Rates | Tax Brackets |
| 8.7% | Up to $41,457 |
| 14.5% | $41,458 to $82,913 |
| 15.8% | $82,913 to $148,027 |
| 17.8% | $148,027 to $207,239 |
| 19.8% | $207,240 to $264,750 |
| 20.8% | $264,751 to $529,500 |
| 21.3% | $529,501 to $1,059,000 |
| 21.8% | $1,059,001+ |
Personal Tax Measures
Physical Activity Tax Credit Increase
The Budget includes a proposed increase to the existing refundable Physical Activity Tax Credit from $2,000 per family to $4,000 per family.
- This credit is applied at the lowest provincial rate of 8.7%, so would potentially result in a tax refund of $348 per family.
Income Supplement and Senior’s Benefit Increase
The Budget includes a proposed increase to the existing refundable tax credits – Income Supplement and Senior’s Benefit by 5%.
- These credits are available to low-income individuals, seniors and families (even if there is no tax payable).
Other Tax Measures
Health and Post-Secondary Education Tax (Payroll)
The exemption threshold for the 2% Health and Post-Secondary Education (Payroll) Tax has been increased from $1.3 million to $2 million, effective January 1, 2023. Businesses with payroll exceeding $2 million are subject to the 2% payroll tax.
Gasoline and Diesel Tax Reduction
The existing reduction on gasoline and diesel of $0.07 per litre has been extended to March 31, 2024. The total reduction is $0.0805 per litre, including HST.
Retail Sales Tax on Personal Property Insurance Permanently Eliminated
The Retail Sales Tax (RST) applied on personal property insurance temporarily eliminated and was set to expire on April 6, 2023. The Budget announced that effective April 7, 2023, it has been permanently eliminated.
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