Your government is committed to making life more affordable. Budget 2026 is focused on responsible, smarter spending for all of us.
More of What You Earn, In Your Pocket
To make life more affordable, this budget provides over $200 million in targeted relief. This is just the beginning of your government’s actions to ease cost-of-living pressures. Initiatives include:
- No new taxes or fees for residents.
- $45 million to minimize the impact of Newfoundland Power’s rate increase planned for July 1, 2026.
- Increasing the basic personal amount exempt from income tax to $15,000, saving 285,000 taxpayers hundreds of dollars per year.
- Saving consumers $67 million annually by permanently reducing the gas tax to 7.5 cents a litre on gasoline and 9.5 cents a litre on diesel.
- Doubling the Volunteer Firefighter and Search and Rescue Tax Credits to $6,000.
- Reducing the Small Business Tax Rate to 2 per cent as of January 1, 2026, 1.5 per cent on January 1, 2027, and 1 per cent on January 1, 2028 to support over 6,000 small businesses in the province.
- Saving consumers $25 million by extending the reduction in registration fees for passenger vehicles, light-weight trucks and taxis by 50 per cent in 2026.
- Over $40 million for a new Graduate Tuition Refund Program starting next fiscal year. This means that graduates who stay, work, and live in the province will receive a tuition refund.
Keeping Costs Within Reach
Providing relief helps to ease cost-of-living pressures and strengthen financial stability for individuals and families. Budget 2026 includes the following actions so people can keep more of their money and manage costs more easily. Budget 2026 includes:
- Increasing the Seniors’ Benefit by 20 per cent, benefitting nearly 50,000 seniors.
- Almost $500 million to continue support for Memorial University and the College of the North Atlantic. This investment includes support for a 2026 tuition freeze, keeping money in the pockets of students.
- Saving consumers $12 million annually by extending the Home Heating Supplement Program for those with an adjusted family income of $150,000 or less that use furnace or stove oil to heat their homes.
- Providing the Newfoundland and Labrador Child Benefit to 3,000 additional children, and increasing support to the 3,000 children already receiving the benefit.
- $8 million to increase foster care and kinship care rates. This recognizes the essential role that foster and kinship families play in providing safe, stable, and nurturing homes for children and youth.
- Providing $4 million to help approximately 500 more low-income families afford rent and reduce Newfoundland and Labrador Housing Corporation’s waitlist by approximately 20 per cent.
Poverty Reduction
Creating a new 10-year Poverty Reduction and Prevention Strategy, focused on practical, forward-looking solutions to help reduce poverty rates to the lowest in Canada by 2036.
The plan will put people first and focus on the social determinants of health to support social and economic well-being for all Newfoundlanders and Labradorians.