Newfoundland Joins the “Tax the Rich” Movement
The 2015 Newfoundland and Labrador provincial budget was presented on April 30, 2015.
The budget contained the following income tax changes.
New Tax Brackets:
Effective July 1, 2015, two new tax brackets are added: $125,000 to $175,000 at 14.3% and over $175,000 at 15.3%. Because of the mid-year change, rates for 2015 will be a blend of 2014 and 2016 rates as follows:
|
2014
Brackets
|
2014
Rates
|
|
2015
Brackets
|
2015
Rates
|
|
2016
Rates
|
|
$0 to $34,254
$34,255 to $68,508
Over $68,508
|
7.7%
12.5%
13.3%
|
|
$0 to $35,008
$35,009 to $70,015
$70,016 to $125,000
$125,001 to $175,000
Over $175,000
|
7.7%
12.5%
13.3%
13.8%*
14.3%*
|
|
7.7%
12.5%
13.3%
14.3%
14.8%
|
*Rates for the two highest brackets are 14.3% and 14.8%, effective July 1, 2015.
HST
As of January 1, 2016 the HST rate will increase from 13% to 15%.
User Fees
User fees will increase in many areas.
In spite of the increased taxes on high-income earners, the budget projects a deficit of $1.1 billion. The government projects to return to a surplus within five years.
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