Canada province Newfoundland and Labrador finance minister Siobhan Coady has presented the province’s 2025 budget on 9 April 2025.
The minister mentioned the province’s deficit has decreased from CAD 1.5 billion in 2020-21 to CAD 372 million estimated in 2025-26 and that balanced budgets are projected for each year in our multi-year forecast starting in 2026-27. The return to balance is postponed by a year to ensure that the government focuses on affordability and addressing tariffs.
In 2025, Newfoundland and Labrador is expected to lead real GDP growth among all Canadian provinces with a forecasted increase of 4.4%, primarily due to increased oil and mineral production.
Corporate income tax rates
The 2025 budget does not include any changes to corporate income tax rates. It also continues to support small businesses by maintaining the reduced small business tax rate, lowered from 3% to 2.5% on income tax payable.
| Corporate income tax | 15.00% |
| Small business corporate income tax | 2.50% |
| Sales tax (combined federal/provincial) | 15.00% |
Personal income tax rates
The 2025 budget does not include any changes to personal income tax rates.
| Income Bracket | Provincial Tax Rate |
| CAD 0 – 43,198 | 8.70% |
| Over CAD 43,198 – 86,395 | 14.50% |
| Over CAD 86,395 – 154,244 | 15.80% |
| Over CAD 154,244 – 215,943 | 17.80% |
| Over CAD 215,943 – 275,870 | 19.80% |
| Over CAD 275,870 – 551,739 | 20.80% |
| Over CAD 551,739 – 1,103,478 | 21.30% |
| Over CAD 1,103,478 | 21.80% |
Contingency fund
The 2025 budget includes a CAD 200 million contingency fund to provide the flexibility to address the economic impacts associated with the uncertainty of US tariffs and associated counter tariffs.
