Newfoundland

2021 Newfoundland and Labrador Budget Highlights

2021 Newfoundland and Labrador Budget Highlights

Synopsis
3 Minute Read

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

Deputy Prime Minister and Minister of Finance the Hon. Chrystia Freeland tabled the Federal Government’s budget on April 19, 2021.

Contact:

Contact your local MNP Advisor for more information.

Insights

  • Performance

    April 17, 2024

    Conflict in the workplace: the ripple effect on small businesses

    Conflict in the workplace can impact small businesses, affecting team dynamics, productivity, and company culture.

  • Confidence

    April 17, 2024

    Following these steps will protect your practice value if emergency strikes

    You can’t predict the future, but building a plan helps to keep your business protected.

  • Performance

    April 16, 2024

    2024 Federal Budget Highlights

    View MNP’s full tax analysis of the 2024 federal budget.