CRA (canada.ca) · 2026
Capital gains tax on property in Newfoundland and Labrador
Canada has no separate capital gains tax. One-half of the gain is added to your income for the year and taxed at your federal and Newfoundland and Labrador marginal rates. That is why the province you live in changes the answer.
The Newfoundland and Labrador figures, with their sources
- One-half of a capital gain is taxable in Canada, so a $100,000 gain on a property in Newfoundland and Labrador adds $50,000 to income for the year.Source: CRA, Calculating and reporting your capital gains and losses.
- The top Newfoundland and Labrador marginal rate for 2026 is 21.80%, charged on income over $1,141,275.Source: Canada Revenue Agency (canada.ca), current year tax rates and income brackets.
- On a $100,000 gain with $100,000 of other income, the estimated tax in Newfoundland and Labrador is $19,963, which is 20.0% of the gain.Source: PropertyGainsTax, how the estimate is calculated.
A worked example for Newfoundland and Labrador
A property bought for $300,000 and sold for $400,000 produces a gain of $100,000. One-half of that, $50,000, is added to income. For someone with $100,000 of other income living in Newfoundland and Labrador, the estimated tax is $19,963, which is 20.0% of the gain. This is an estimate for general information, not tax advice.
Work out your own figures in the Canada calculator
Newfoundland and Labrador tax brackets for 2026
| Taxable income | Newfoundland and Labrador rate |
|---|---|
| $0 to $44,678 | 8.70% |
| $44,678 to $89,354 | 14.50% |
| $89,354 to $159,528 | 15.80% |
| $159,528 to $223,340 | 17.80% |
| $223,340 to $285,319 | 19.80% |
| $285,319 to $570,638 | 20.80% |
| $570,638 to $1,141,275 | 21.30% |
| over $1,141,275 | 21.80% |
Federal brackets, charged on top
| Taxable income | Federal rate |
|---|---|
| $0 to $58,523 | 14.00% |
| $58,523 to $117,045 | 20.50% |
| $117,045 to $181,440 | 26.00% |
| $181,440 to $258,482 | 29.00% |
| over $258,482 | 33.00% |
Common questions
Common questions
How much capital gains tax will I pay on a property in Newfoundland and Labrador?
It depends on the gain and on your other income, because Canada has no separate capital gains tax. One-half of the gain is added to your income and taxed at your federal and Newfoundland and Labrador marginal rates. On a $100,000 gain with $100,000 of other income, the estimated tax is $19,963, which is 20.0% of the gain. Enter your own figures in the Canada calculator to see the estimate for your sale.
What are the Newfoundland and Labrador tax brackets used in this estimate?
Newfoundland and Labrador charges 8.70% on income $0 to $44,678, 14.50% on income $44,678 to $89,354, 15.80% on income $89,354 to $159,528, 17.80% on income $159,528 to $223,340, 19.80% on income $223,340 to $285,319, 20.80% on income $285,319 to $570,638, 21.30% on income $570,638 to $1,141,275, 21.80% on income over $1,141,275. These are the 2026 brackets, taken from the published rates and last checked on 6 September 2026. Federal tax is charged on top.
Do I pay capital gains tax when I sell my home in Newfoundland and Labrador?
Usually not. Where the property was your principal residence for every year you owned it, the gain is exempt, though the sale must still be reported on Schedule 3 and designated on Form T2091(IND). The exemption is federal, so it works the same way in every province and territory.
Every province and territory
- Capital gains tax in Alberta
- Capital gains tax in British Columbia
- Capital gains tax in Manitoba
- Capital gains tax in New Brunswick
- Capital gains tax in Northwest Territories
- Capital gains tax in Nova Scotia
- Capital gains tax in Nunavut
- Capital gains tax in Ontario
- Capital gains tax in Prince Edward Island
- Capital gains tax in Quebec
- Capital gains tax in Saskatchewan
- Capital gains tax in Yukon
Sources
- Calculating and reporting your capital gains and losses (inclusion rate)
- Prime Minister cancels proposed capital gains tax increase, 21 March 2025
- Current year tax rates and income brackets, 2026 (federal and provincial)
- Revenu Québec, income tax rates for 2026
- Principal residence and other real estate (designation, half-hectare limit, flipping rule)
- Income Tax Folio S1-F3-C2, Principal Residence (exemption formula, paragraph 2.20)
Rates last checked against Canada Revenue Agency (canada.ca) on 6 September 2026. Estimates for general information only, not tax advice. A qualified adviser should be used for a decision.