Newfoundland and Labrador harmonized sales tax credit (NLHSTC)

What’s in this article?


What is this?

The Newfoundland and Labrador harmonized sales tax credit (NLHSTC) is a credit that is paid to lower income taxpayers of this province to refund part of the HST paid.


Newfoundland and Labrador government says…

Under this program, individuals or families with adjusted family net incomes of $15,000 or less receive an annual amount of $40 per adult and $60 for each child under 19.

Effective January 1, 2016, the HST rate is increasing from 13 per cent to 15 per cent with the provincial portion of the HST increasing from eight per cent to 10 per cent. To mitigate the impact on low income individuals and families, the HST credit is being enhanced effective with the October 2016 payment. The credit amounts are: $300 for eligible individual, $60 per qualifying relation and $60 per qualifying dependent for taxpayers with net family income of $30,000 or less. The credit is reduced by 5% when net family income exceeds $30,000.

This amount is combined with the October payment of the federal GST/HST credit.

The NLHSTC is fully funded by the Newfoundland and Labrador provincial government but is administered by the Canada Revenue Agency (CRA).


Am I eligible?

This tax credit will be automatically paid to you if you meet all of the following eligibility criteria:

  • You are 19 years of age of older by December 31st of the current tax year
  • You file an annual income tax return
  • You are a resident of Newfoundland and Labrador


Canada Revenue Agency (CRA) says…

To be eligible to get the GST/HST credit, including any related provincial credits, you have to file an income tax and benefit return for the year, even if you have not received income in the year.

If you qualify for the GST/HST credit, your provincial credit payments will be combined with your GST/HST credit payments.


The credit amount is calculated based on your net family income for the year as well as, whether you have a spouse or common-law partner and the number of children you have registered for the credit.

Note: The credit is not paid to taxpayers who are in prison or a similar institution at the end of the year and have been there for a total of six months during the year.


Where do I learn more?