On April 9, 2025, the Honourable Siobhan Coady, Deputy Premier, Minister of Finance, and President of the Treasury Board, tabled Newfoundland and Labrador's 2025 budget.
Projecting a deficit of $372 million, this year’s budget does not include any new provincial taxes or any tax or fee increases. However, the budget reiterates the government’s commitment to key tax relief and affordability measures introduced in previous years, with an emphasis on supporting small businesses and enhancing competitiveness.
Income Tax Measures
This year's budget maintains the small business corporate income tax rate at 2.5% on the first $500,000 of active business income. This rate was reduced from 3% as part of last year’s budget.
In addition, the province has committed to retaining previously introduced corporate income tax credits for manufacturing and processing, green technology, and film and video production.
Commodity Tax Measures
The government announced that it will maintain a couple of previously implemented commodity tax measures designed to help address the rising cost of living, including:
- Elimination of the retail sales tax on home insurance
- A 50% reduction in the provincial fuel tax, resulting in savings of 8.05 cents per litre on purchases of gasoline and diesel (including harmonized sales tax)
Potential Impact of Tariffs
The budget also includes a $200 million contingency fund to mitigate the potential economic impact of U.S. tariffs and Canadian countermeasures.
More Information
Further information on Newfoundland and Labrador's 2025 budget may be found on the province’s website.
For significant tax changes announced in Canada’s latest provincial budgets, please visit our Key Changes | 2025 Canadian Federal and Provincial Budgets page.
If you have any questions about how changes proposed in recent Canadian budgets might impact your organization, please do not hesitate to contact Ryan TaxDirect® at 1.800.667.1600 or taxdirect@ryan.com.