Newfoundland & Labrador Tax Rates for 2026

The top combined federal and Newfoundland & Labrador marginal rate is 54.80% on taxable income over $1,141,275. Capital gains are taxed at half your marginal rate, up to 27.40%.

Marginal and capital gains rates by income

Newfoundland & Labrador combined marginal and capital gains tax rates by taxable income, 2026
Taxable income	Marginal rate	Capital gains rate
Up to $44,678	22.70%	11.35%
$44,678 to $58,523	28.50%	14.25%
$58,523 to $89,354	35.00%	17.50%
$89,354 to $117,045	36.30%	18.15%
$117,045 to $159,528	41.80%	20.90%
$159,528 to $181,440	43.80%	21.90%
$181,440 to $223,340	46.80%	23.40%
$223,340 to $258,482	48.80%	24.40%
$258,482 to $285,319	52.80%	26.40%
$285,319 to $570,638	53.80%	26.90%
$570,638 to $1,141,275	54.30%	27.15%
Over $1,141,275	54.80%	27.40%

Rates apply to the next dollar of taxable income above the basic personal amounts. Sources: CRA 2026 federal and provincial brackets, cross-checked against KPMG's 2026 table. Credits, the alternative minimum tax and income-tested benefits are not included. Estimates only, not tax advice.

Example: a $20,000 capital gain

With $120,000 of other taxable income in Newfoundland & Labrador, half of the gain ($10,000) is added to your income. The extra federal and provincial tax is about $4,180, an effective rate of 20.90% on the gain. A capital loss of the same size in the same year would save about the same amount.

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Frequently asked questions

What is the top marginal tax rate in Newfoundland & Labrador in 2026?

The top combined federal and provincial rate in Newfoundland & Labrador is 54.80%, on taxable income over $1,141,275.

What is the capital gains tax rate in Newfoundland & Labrador?

Half of a capital gain is taxable, so the rate on a gain is half of your marginal rate: from 11.35% on lower incomes up to 27.40% at the top.

How much tax would I pay on a $20,000 capital gain in Newfoundland & Labrador?

With $120,000 of other taxable income, a $20,000 gain adds about $4,180 of federal and Newfoundland & Labrador tax, an effective rate of 20.90% on the gain.