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Dividend tax · Newfoundland and Labrador

Dividend tax in Newfoundland and Labrador

Newfoundland and Labrador's dividend tax credit is 6.30% of grossed-up eligible dividends and 3.2000% of grossed-up non-eligible dividends (2025 worksheet, latest published).

Here's what $1,000 of dividends costs in tax in Newfoundland and Labrador, next to the same $1,000 of interest.
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Short answerWith $100,000 of other income in Newfoundland and Labrador, $1,000 of eligible dividends adds about $207 of 2026 tax (20.7%), non-eligible dividends about $277 (27.7%) and interest about $363 (36.3%). These are estimates from published brackets and credits.

Newfoundland and Labrador's dividend tax credit rates

CreditEligible dividendsNon-eligible dividends
Gross-up (federal rule)38%15%
Federal credit15.0198%9.0301%
Newfoundland and Labrador credit6.3000%3.2000%

Credits are a percentage of the grossed-up (taxable) amount: $1,000 of eligible dividends becomes $1,380 of taxable income, and the Newfoundland and Labrador credit on it is $86.94. Both credits are non-refundable, so they can reduce your tax to zero but not below.

Estimated 2026 tax on $1,000 of each kind of income

Other taxable incomeEligible dividendsNon-eligible dividendsCapital gainsInterest
$50,000$99$187$143$285
$100,000$207$277$182$363
$200,000$356$401$235$471

At lower incomes the dividend tax credit can exceed the tax on the grossed-up dividend. At higher incomes, half-taxed capital gains usually cost less than eligible dividends.

Newfoundland and Labrador 2026 income tax brackets used

Taxable income up toProvincial rate
$44,6788.70%
$89,35414.50%
$159,52815.80%
$223,34017.80%
$285,31919.80%
$570,63820.80%
$1,141,27521.30%
and above21.80%

Basic personal amount used: $11,188. The estimate leaves out other credits, health premiums and benefits.

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Estimate for education, not advice. This site does not recommend, rate or rank any security and does not know your full situation. Results depend on your inputs and the simplifications listed under Method. Check tax details with the CRA or IRS, or a qualified professional. Read the disclaimer.

Primary sources

Rules checked October 31, 2026. Tax rules and rates change; confirm current details on the official pages above.