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2022 New Brunswick provincial budget tax highlights

Mar 23, 2022

On March 22, the New Brunswick government released their 2022 budget. The following are highlights of the key tax measures.

Personal tax measures

No personal income tax rate changes were announced in this year’s budget. The current personal combined income tax rates for 2022 are outlined below:

Personal (combined) federal and N.B. top marginal tax rates
	Rate
Interest/regular income	53.30%
Capital gains	26.65%
Eligible dividends	33.51%
Non-eligible dividends	47.75%

Basic personal amount

Effective for the 2022 taxation year, the province’s basic personal amount will be increased from $10,817 to $11,720 and the Low Income Tax Reduction threshold will increase from $18,268 to $19,177.

Corporate tax measures

No corporate income tax rate changes were announced in this year’s budget. The current corporate income tax rates for 2022 are outlined below:

	Small business corporations		General corporations
	Rate	Threshold	Non-M&P	M&P
New Brunswick	2.5%	$500,000	14.0%	14.0%
Combined Federal and New Brunswick	11.5%	$500,000	29.0%	29.0%

Other tax measures

Carbon tax

Effective April 1, 2022, the province’s carbon tax will increase from the equivalent of $40 per tonne to $50 per tonne. This will represent an increase of 2.21 cents per litre on gasoline and 2.68 cents per litre on diesel.

Property tax

Beginning with the April 1, 2022 property tax bills, provincial property tax rate reductions will be phased in over a three-year period and will result in:

A 50 per cent provincial property tax rate reduction for non-owner-occupied residential properties, including apartment buildings and other rental properties.
A 15 per cent provincial property tax rate reduction for other residential properties, including nursing homes.
A 15 per cent provincial property tax rate reduction for non-residential properties.