Summary: Newfoundland and Labrador Budget 2024

Most notably, NL Budget 2024 reduces the small business tax rate retroactively, effective from January 1, 2024. The budget makes no changes to the personal tax rate or the current Harmonized Sales Tax (HST) rate.

NL Budget 2024 projects a deficit of $433 million for the 2023-24 fiscal year, compared to a $160 million deficit projected in the previous budget. 

Fiscal projections for the next five years are as follows:

Business tax measures

Corporate tax rates

NL Budget 2024 reduces the small business tax rate on the first $500,000 of active business income to 2.5% (from 3%) effective January 1, 2024. There was no change to the $500,000 small business limit.  

Combined federal and provincial corporate tax rates

Personal tax measures

Personal income tax rates

NL Budget 2024 doesn’t change the personal rates. The indexed personal tax brackets and the respective marginal tax rates for 2024 are as follows:

The top combined federal and provincial marginal tax rates for 2024 are as follows:

Other notable measures

Health care – NL Budget 2024 provides $4.1 billion in health care spending to support initiatives, such as hiring additional health care providers, investing in health information management infrastructure, and expanding mental health and addiction programs.

Housing – NL Budget 2024 provides $80 million over two years for the Affordable Homes Program to support the development of new affordable rental housing in Newfoundland and Labrador.

Seniors – NL Budget 2024 provides $10 million for a Seniors’ Well-Being Plan, which includes grants for low-income seniors and increased investments for home repair and modifications.

Business and economic development – NL Budget 2024 provides $35 million to support economic development initiatives, which includes research and development, commercialization, and business growth activities.

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Visit our Budget 2024 hub to learn more about all federal and provincial budgets.   

^Disclaimer  

^{The information contained herein is general in nature and is based on proposals that are subject to change. It is not, and should not be construed as, accounting, legal or tax advice or an opinion provided by Doane Grant Thornton LLP to the reader. This material may not be applicable to, or suitable for, specific circumstances or needs and may require consideration of other factors not described herein.}