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Canada: Tax measures in 2026 budget (Newfoundland and Labrador)

Proposed changes to business, individual, and indirect taxes

april 30, 2026

Newfoundland and Labrador’s Finance Minister on April 29, 2026, delivered the province’s 2026 budget, including several tax-related changes for businesses and individuals.

  • Business tax: The budget would reduce the small business income tax rate to 2.0% (from 2.5%) for the 2026 tax year, 1.5% for 2027, and 1.0% for 2028. The general corporate income tax rate remains unchanged at 15%.
  • Individual (personal) tax:
    • The basic personal amount would increase to $15,000 (from $11,188).
    • The proposal would double the Volunteer Firefighter and the Search and Rescue Tax Credits to $6,000 (from $3,000).
    • The Newfoundland and Labrador Seniors’ Benefit would increase by 20%, effective July 1, 2026.
    • Individual income tax rates are not changed.
  • Indirect tax: The budget proposes to permanently reduce the provincial tax on gasoline and diesel to 7.5 cents per litre and 9.5 cents per litre, respectively.

Read an April 2026 report prepared by the KPMG member firm in Canada

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