Understanding net salary in Newfoundland and Labrador 2026
Payroll withholding in Newfoundland and Labrador is administered by the CRA using specific derivation codes. Because the province has so many brackets, the tax rate scales up more smoothly than in 3-bracket provinces, but the top-end rates are substantial.
This page provides an educational estimate: it explains the mechanisms and gives an order of magnitude.
The calculation logic can be summarized as follows:
Annual net salary = Annual gross salary
− Federal tax
− Provincial/territorial tax
− Pension contributions (CPP/QPP)
− Employment Insurance (EI)
− QPIP (if Quebec)
In Newfoundland and Labrador, provincial income tax is administered through the federal tax system, meaning the CRA collects it directly despite the province setting its own fiscal policy.
⚠️ Keep in mind: your actual pay stub may differ depending on your credits (TD1),
taxable benefits, RRSP contributions, bonuses,
commissions, overtime, union dues, and other specifics.
2026 tax tablesCRA
Rates + K constant
Newfoundland and Labrador has the most fragmented tax system in Canada in 2026, with a total of eight provincial tax brackets. The Basic Personal Amount is the lowest in the country, set at $11,188.
Taxation begins at 8.7% on the first $44,678. Due to the low base amount, workers start paying provincial tax sooner than anywhere else.
The second bracket rises to 14.5% for income up to $89,354. Then, the rates increase gradually: 15.8%, 17.8%, 19.8%, and 20.8% before reaching the peak of 21.3% for very high incomes.
Despite this high number of brackets, the payroll calculation integrates the standard 'K' constant by the CRA to facilitate the work of accounting software.
Concrete example: For a $95,000 income in St. John's, you will cross through three provincial brackets. Your net salary will be approximately $66,000, as deductions are relatively heavy in the province.
| Income bracket |
Rate |
K |
| 58 523 $ or less |
14 % |
0 |
| 58 523.01 $ to 117 045 $ |
20.50 % |
3 804 |
| 117 045.01 $ to 181 440 $ |
26 % |
10 241 |
| 181 440.01 $ to 258 482 $ |
29 % |
15 685 |
| 258 482.01 $ or more |
33 % |
26 024 |
Provincial 2026
Newfoundland and Labrador
| Income bracket |
Rate |
K |
| 54 345 $ or less |
14 % |
0 |
| 54 345.01 $ to 108 680 $ |
19 % |
2717 |
| 108 680.01 $ to 132 245 $ |
24 % |
8 151 |
| 132 245.01 $ or more |
25.75 % |
10 465 |
Calculations reflect the 2026 Newfoundland and Labrador personal income tax rates and thresholds, including the latest indexation adjustments published by the provincial government.
Federal Basic Personal Amount (BPA) - minimum vs maximum
In Newfoundland and Labrador, the federal BPA reduces federal tax through a non-refundable credit mechanism. This creates a portion of income that is effectively exempt from federal taxation.
For 2026, the BPA varies from 16,452 $ at its maximum down to 14,829 $ for high-income earners, with a gradual reduction between 181,440 $ and 258,482 $. The province applies a lower basic amount of 11,188 $ at the provincial level.
-
Maximum BPA: generally applies if your net income is below the phase-out threshold. It
provides the largest credit.
-
Minimum BPA: applies to high incomes (above the upper threshold). Even at very high income,
you keep at least this credit.
-
Between the two: the BPA is reduced progressively from the maximum toward the minimum
according to a formula.
Not to be confused: each province also has its own basic personal amount, which reduces
provincial tax separately from the federal BPA.
Additional 2026 information - thresholds and rates
If you are a high earner, note that Newfoundland and Labrador applies a much higher rate on income over the top threshold. The calculator accurately estimates the jump in withholding that occurs once your year-to-date income crosses these high-water marks.
CPP / QPP - base plan
-
Applicable range:
Pensionable earnings, generally between the annual exemption of 3 500 $ and the maximum
pensionable earnings
(YMPE) of 74 600 $.
-
Employee rate:
CPP 5.95% (outside Quebec) ·
QPP 6.30% (Quebec).
CPP2 / QPP - additional plan
-
Applicable range:
Earnings above the YMPE (74 600 $) up to the additional maximum
(AYMPE) of 85 000 $.
-
Employee rate:
4.00%.
Dynamic display: if annual salary is ≤ 74 600 $, this contribution does not apply.
EI (Employment Insurance)
-
Maximum insurable earnings:
68 900 $.
-
Employee rate:
1.63% (outside Quebec) · 1.30% (Quebec).
QPIP - parental insurance (Quebec)
-
Maximum insurable earnings:
103 000 $.
-
Employee rate:
0.430%.
This contribution applies only if the province is Quebec.
Federal Basic Personal Amount (BPA)
-
Maximum: 16 452 $ ·
Minimum: 14 829 $.
-
Non-refundable credit, phased down between 181 440 $ and 258 482 $ of annual income.
FAQ - Net Pay / Take-Home Pay in Newfoundland and Labrador (NL) 2026
I work in Alberta (FIFO) but my family lives in Newfoundland and Labrador. How am I taxed?
This is based on your primary residence. If your home and family are in Newfoundland and Labrador as of December 31, you will pay NL tax, even if your Alberta employer withholds Alberta tax from your paycheques (a tax adjustment will be made at year-end).
Why does Newfoundland and Labrador have eight tax brackets (the most in Canada)?
This highly fragmented system is designed for very fine-grained taxation. Taxation starts at a low income level (around $11,000) and increases in very small steps. This means that every salary increase is immediately taxed at a slightly higher rate.
Is the Deficit Reduction Levy still deducted from my pay?
No. The well-known Deficit Reduction Levy introduced in 2016 was fully eliminated in 2019. Your take-home pay is no longer reduced by this temporary tax.
