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HEAD-TO-HEAD TAX COMPARISON · 2026

COUNTRY A Ontario VS COUNTRY B Newfoundland and Labrador

Side-by-side analysis of income tax, effective rates, and take-home pay for Ontario and Newfoundland and Labrador in 2026.

Daniel · CountryTaxCalc Updated October 2026 Tax Comparison 2026
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OVERVIEW
Ontario residents pay significantly less provincial income tax than residents of Newfoundland and Labrador at every income level shown ($50,000 to $250,000). At $100,000, Ontario saves $3,603 per year in provincial income tax. Newfoundland also charges 15% HST — two percentage points more than Ontario's 13%, adding approximately $800/year in extra sales tax costs. Despite this combined tax disadvantage, Newfoundland has some of Canada's lowest housing costs and a fiercely proud East Coast culture. Figures are provincial income tax only, single filer, using the 2026 basic personal amount credit, with Ontario surtax and Health Premium included and the Newfoundland basic personal amount at its 2026 full-year blend of $13,094. Oil and gas sector workers in Newfoundland's offshore industry often offset the tax burden with above-average wages. For Ontario residents attracted to Atlantic Canada's slower pace of life, the financial trade-off versus PEI or Nova Scotia is often favourable given Newfoundland's particularly low housing market.
Section 01

The Big Picture

Top-line rates and effective take-home for a typical earner — including income tax, social contributions, and applicable surcharges.

🍁
COUNTRY A
Ontario
TAX RATE
5.05-13.16%
Lower Income Tax

5 progressive brackets from 5.05% to 13.16%

🫏
COUNTRY B
Newfoundland and Labrador
TAX RATE
8.7-21.8%
High Income Tax + 15% HST

8 progressive brackets from 8.7% to 21.8%

TYPICAL ANNUAL DIFFERENCE
Moving from Newfoundland and Labrador → Ontario at $100,000
$3,603

Ontario residents pay $3,603 less per year in provincial income tax than Newfoundland and Labrador at $100,000. Newfoundland also charges 15% HST versus Ontario's 13%, adding ~$800/year in additional sales tax costs.

Section 02

Tax Savings by Income Level

Net take-home after all income tax, social contributions, and surcharges — for a single employee with no dependents.

GROSS INCOME
🍁 ON TAX
🫏 NL TAX
SAVINGS
10-YEAR
$50,000
$2,265
$3,181
-$916
-$9,160
$75,000
$4,446
$6,635
-$2,189
-$21,890
$100,000
$6,723
$10,326
-$3,603
-$36,030
$150,000
$14,608
$18,226
-$3,618
-$36,180
$250,000
$34,161
$36,323
-$2,162
-$21,620
🍁

Ontario Pros & Cons

+ PROS
  • Lower provincial income tax than Newfoundland and Labrador at every income level shown ($50,000 to $250,000)
  • Ontario's top bracket rate is 13.16% (about 20.5% including surtax) vs Newfoundland's 21.8%
  • Toronto: Canada's dominant employment hub across all professional sectors
  • Lower sales tax at 13% HST vs Newfoundland's 15% HST
− CONS
  • Extremely high Toronto housing costs — buying a home is out of reach for many
  • High cost of living in urban Ontario
  • No access to Atlantic Canada lifestyle, seafood, and maritime culture
  • Urban congestion and stress
🫏

Newfoundland and Labrador Pros & Cons

+ PROS
  • Some of Canada's lowest housing prices — detached homes in St. John's can be found under $400,000
  • Strong oil and gas sector wages in offshore energy
  • Unique Newfoundland culture — warm communities, incredible coastlines, icebergs
  • Memorial University offers one of Canada's lowest tuition rates
− CONS
  • Provincial income tax higher than Ontario at every income level shown ($50,000 to $250,000)
  • Newfoundland's top rate of 21.8% (above $1,141,275) is the second-highest provincial rate in Canada after Quebec's 25.75%
  • 15% HST applies to most goods and services
  • Fewer professional job opportunities outside oil and gas, government, and healthcare
FAQ

Frequently Asked Questions

Is Ontario or Newfoundland cheaper for taxes?

Ontario is significantly cheaper on both income tax and sales tax. At $100,000 income, Ontario saves $3,603/year in provincial income tax. Ontario's 13% HST is also 2 percentage points lower than Newfoundland's 15%, saving roughly $800/year more on $40,000 of spending. Total annual advantage for Ontario: approximately $4,403.

What are Newfoundland's provincial income tax brackets for 2026?

Newfoundland and Labrador 2026 provincial brackets: 8.7% to $44,678, 14.5% to $89,354, 15.8% to $159,528, 17.8% to $223,340, 19.8% to $285,319, 20.8% to $570,638, 21.3% to $1,141,275, 21.8% above $1,141,275. The basic personal amount credit is $13,094 on a full-year basis (CRA: $11,188 for January to June and $15,000 from July). Source: CRA payroll deductions tables (T4032-NL, T4127).

Why does Newfoundland have such high income tax?

Newfoundland's finances have historically been constrained by geography, a small population, and past economic challenges. Despite offshore oil revenues in good years, the province has carried significant debt and uses higher income and sales taxes to fund public services. The province has made efforts to attract workers, including through immigration, to broaden its tax base.

Is Newfoundland a good place for oil and gas workers?

Yes, for those working in offshore oil and gas (primarily out of St. John's), high industry wages can more than offset Newfoundland's higher taxes. An offshore worker earning $150,000+ may find their after-tax income comparable to or better than a similar worker in Ontario, once housing cost savings are factored in.

How does Newfoundland housing compare to Ontario?

Newfoundland housing costs are dramatically lower than Ontario's. In St. John's, detached homes typically range from $300,000–$500,000 — versus $900,000–$1,500,000 in Toronto. For families, the ability to afford a home with a yard can more than offset the higher tax burden.

What is Newfoundland's HST rate?

Newfoundland charges 15% HST — the same as New Brunswick and PEI (Nova Scotia has charged 14% since April 1, 2025). This is a combined 5% federal GST plus 10% provincial component. It's among Canada's highest sales tax rates and applies to most goods and services.

Is the Atlantic Canada migration trend sustainable given high taxes?

The Atlantic migration trend driven by remote work (2020–2023) has slowed somewhat as remote work policies tightened. Newfoundland's growth was more modest than Nova Scotia or PEI. For remote workers who can genuinely work from anywhere, the housing cost savings often still outweigh the tax disadvantage — but it requires careful income modeling at higher salaries.
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