Summary: Newfoundland and Labrador Budget 2025

The province’s deficit for the 2024-25 fiscal year is estimated at $252 million compared to the $152 million deficit projected in the previous budget. 

There are no proposed changes to personal tax rates, corporate tax rates, or the current Harmonized Sales Tax (HST) rate.

Fiscal projections for the next five years are as follows:

The 2025-26 projected deficit of $372 million includes a $200 million contingency related to the enacted and proposed US tariffs.

Business tax measures

Corporate tax rates

There are no proposed changes to the corporate tax rates or the $500,000 small business limit.

Combined federal and provincial corporate tax rates

Personal tax measures

Personal income tax rates

There are no changes to the personal tax rates. The indexed personal tax brackets and the respective marginal tax rates for 2025 are as follows:

The top combined federal and provincial marginal tax rates for 2025 are as follows:

Sales and excise tax measures

The gasoline and diesel tax will remain at $0.07 per litre. This reduced tax has been in effect since June 2, 2022 and was scheduled to increase back to its 2020 historical rate of $0.165 per litre effective March 1, 2025. The increase to $0.165 is now scheduled to be effective March 1, 2026.

Have questions? Let’s talk. Contact your local advisor or reach out to us here.

Visit our Budget 2025 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.}