Ontario vs Newfoundland and Labrador Tax Comparison
On an $80,000 salary in 2026, Ontario gives you $2,665 more per year in take-home pay. Here's the full breakdown.
Take-Home Pay Comparison (2026)
| Salary | Ontario | Newfoundland and Labrador | Difference | Better In |
|---|---|---|---|---|
| $60,000 | $46,243.00 | $44,498.02 | $1,745 | Ontario |
| $80,000 | $58,933.23 | $56,268.25 | $2,665 | Ontario |
| $100,000 | $72,709.92 | $68,929.85 | $3,780 | Ontario |
Assumes employed, no RRSP contributions, no student loan. Difference = Ontario take-home minus Newfoundland and Labrador.
Full Breakdown — $80,000 Salary (2026)
| Ontario | Newfoundland and Labrador | Difference | |
|---|---|---|---|
| Gross Income | $80,000.00 | $80,000.00 | — |
| Federal Tax | $10,292.73 | $10,292.73 | — |
| Provincial Tax & Levies | $5,204.52 | $7,869.50 | -$2,664.98 |
| CPP | $4,446.45 | $4,446.45 | — |
| EI | $1,123.07 | $1,123.07 | — |
| Total Deductions | $21,066.77 | $23,731.75 | -$2,664.98 |
| Take-Home Pay | $58,933.23 | $56,268.25 | +$2,664.98 |
| Effective Rate | 26.0% | 30.0% | -4.0pp |
| Monthly Take-Home | $4,911.10 | $4,689.02 | +$222.08 |
Difference column shows Ontario minus Newfoundland and Labrador. Green = Ontario is better.
Provincial Tax Brackets (2026)
Ontario (top rate 13.16%)
| Bracket | Rate |
|---|---|
| $0 – $53,891 | 5.1% |
| $53,891 – $107,785 | 9.2% |
| $107,785 – $150,000 | 11.2% |
| $150,000 – $220,000 | 12.2% |
| $220,000 – No limit | 13.2% |
BPA: $12,989
Newfoundland and Labrador (top rate 21.8%)
| Bracket | Rate |
|---|---|
| $0 – $44,678 | 8.7% |
| $44,678 – $89,354 | 14.5% |
| $89,354 – $159,528 | 15.8% |
| $159,528 – $223,340 | 17.8% |
| $223,340 – $285,319 | 19.8% |
| $285,319 – $570,638 | 20.8% |
| $570,638 – $1,141,275 | 21.3% |
| $1,141,275 – No limit | 21.8% |
BPA: $13,094
Why the Difference?
Ontario has 5 provincial tax brackets with a top rate of 13.2%, while Newfoundland and Labrador has 8 brackets with a top rate of 21.8%. Federal tax and CPP are identical in both provinces. The difference comes entirely from provincial income tax rates and credits.
Your tax province is determined by where you are resident on December 31 of the tax year — not where your employer is based. If you move mid-year, your new province’s rates apply to your entire year’s income.
Ontario vs Newfoundland and Labrador: diversified growth against an oil-linked economy
Newfoundland and Labrador's public finances rise and fall with oil, its top income tax brackets rank among the highest in the country, and St. John's operates as a comparatively isolated labour market — three structural facts that make this one of the sharper contrasts with Ontario's diversified, Toronto-centred economy. The province has also spent years working to reverse a long history of out-migration, a trend turning around only slowly.
Both provinces use an HST, but not at the same rate: Ontario's sits below Newfoundland and Labrador's, a gap shoppers feel on everyday purchases. Income tax diverges further still, since the province's top-end brackets run high even against Ontario's surtax-inflected system. Pulling the other way is housing: the Greater Toronto Area costs far more to live in than St. John's, so the net effect for any household depends heavily on income level and city — precisely what the take-home tables above are built to show.
Beyond Income Tax: Ontario vs Newfoundland and Labrador
| Ontario | Newfoundland and Labrador | |
|---|---|---|
| Sales tax | 13% HST | 15% HST |
| Land transfer tax on a $500,000 home | $6,475 (Land Transfer Tax) | No land transfer tax ($2,098 registration fees) |
| Probate fees on a $500,000 estate | $6,750 | $3,054 |
GST+PST provinces tax a narrower base than HST provinces — not all goods and services attract PST. Non-first-time buyer, province-level tax only. Toronto adds a separate municipal land transfer tax. Figures derive from the same 2026 config that powers our calculators.
Who Comes Out Ahead?
Oil and resource-sector workers weighing a move to St. John's
Newfoundland and Labrador's top-end income tax brackets run high, so check the tables above at your actual salary rather than assuming the switch is a straightforward saving.
Return migrants considering a move back to Newfoundland and Labrador
Weigh the province's higher top-bracket income tax against Ontario's steeper housing costs — neither factor alone tells the full story, so use the tables above alongside local rents.
Remote workers based in St. John's or the Greater Toronto Area
St. John's relative isolation as a labour market is a bigger practical factor than the tax gap for most remote roles, but the tables above still matter at higher incomes.
Bottom Line
Newfoundland and Labrador's high top-end brackets and Ontario's high housing costs pull in opposite directions — compare your own salary in the tables above to see the net effect.
Frequently asked questions
Is Ontario or Newfoundland and Labrador better for taxes?
At an $80,000 salary in 2026, Ontario gives you $2,665 more in annual take-home pay. Ontario has a top provincial rate of 13.16% while Newfoundland and Labrador's is 21.8%. The exact savings depend on your income level.
How much more tax do you pay in Newfoundland and Labrador vs Ontario?
On an $80,000 salary in 2026, Newfoundland and Labrador residents pay approximately $2,665 more in total deductions (income tax + CPP + EI) per year compared to Ontario. This difference is primarily driven by provincial income tax rates.
Is CPP the same in every province?
Yes. The Canada Pension Plan (CPP) is a federal program with uniform contribution rates across all provinces, including Quebec which uses the equivalent Quebec Pension Plan (QPP) at the same rate. CPP/QPP does not contribute to interprovincial tax differences.
What determines my tax province — where I live or where I work?
Your province of residence on December 31 determines which provincial tax rates apply to your entire year's income. It does not matter where your employer is located or where you physically work. If you move provinces during the year, your new province's rates apply to all income earned that calendar year.
How does sales tax compare between Ontario and Newfoundland and Labrador?
As of 2026, Ontario charges 13% HST while Newfoundland and Labrador charges 15% HST. Unlike income tax, sales tax applies to what you spend rather than what you earn, so it matters most for large purchases. Provinces that combine GST with a separate PST also tax a narrower base of goods and services than HST provinces.
Related Province Comparisons
Related Tools
- Compare All 13 Provinces — Interactive calculator ranking every province by take-home pay.
- Moving Province Calculator — See exactly how much you’d save moving between two provinces.
- Income Tax Calculator — Full income tax breakdown by bracket.
Sources
Last updated July 2026. Reflects 2026 federal and provincial tax rates. Assumes employed, no RRSP, no student loan.