Newfoundland and Labrador Alters July 1 Tax Hike Threshold and Rates

By Jared Mondschein

June 3—The threshold for a new income tax levy scheduled to become effective July 1 will increase to C$50,000 ($38,577) from C$20,000 ($15,430) while the rates will change across all brackets from the previously announced amounts, according to a May 25 news release by the Newfoundland and Labrador government.

Tax amounts under the new levy, officially known as the Temporary Deficit Reduction Levy, are to range from C$100 ($77) for individuals making more than C$50,000 but not more than C$55,000 ($42,435) to C$1,800 ($1,388) for individuals making more than C$600,000 ($468,927).

Levy amounts previously announced in the April 14 provincial budget ranged from C$300 ($231) for individuals making more than C$20,000 but not more than C$25,000 ($19,288) to C$900 ($694) for individuals making more than C$202,500 ($156,237).

To contact the reporter on this story: Jared Mondschein at jmondschein@bna.com.

To contact the editor responsible for this story: Michael Baer at mbaer@bna.com .

For More Information

The May 25 statement by the Newfoundland and Labrador government is available at http://www.releases.gov.nl.ca/releases/2016/exec/0525n02.aspx.

The Canadian Revenue Agency's updated payroll deduction formulas for Newfoundland and Labrador are available at http://www.cra-arc.gc.ca/E/pub/tg/t4127-jul/t4127-jul-16e.html.

The April 15 budget documents are available at http://www.budget.gov.nl.ca/budget2016/highlights/revenueaction.pdf.

More information on payroll issues in the Canada can be found in the Canada country primer.