2023 New Brunswick budget tax highlights
On March 21, the New Brunswick government released its 2023 budget.
Personal tax measures
No personal income tax rate changes were announced in this year’s budget. The current personal combined income tax rates for 2023 are outlined below:
|
Personal (combined) federal and N.B. top marginal tax rates |
|
|
|
Rate |
|
Interest/regular income |
52.50% |
|
Capital gains |
26.25% |
|
Eligible dividends |
32.40% |
|
Non‑eligible dividends |
46.83% |
While the budget did not contain any new or amended personal or corporate tax initiatives, the following previously announced measures will be implemented:
- As announced Nov. 1, 2022, the following provincial personal income tax rate reductions will apply for 2023 and subsequent taxation years:
- Tax rate on the second income bracket reduced from 14.82 per cent to 14 per cent
- Tax rate on the third income bracket reduced from 16.52 per cent to 16 per cent
- Eliminating the fourth income bracket and taxing this group at the same rate as the third income bracket, from 17.84 per cent to 16 per cent
- Tax rate on the highest income bracket reduced from 20.3 per cent to 19.5 per cent
- As announced Feb. 16, 2023, the N.B. government will align with its Atlantic Canadian counterparts by opting for the federal backstop on carbon pricing. Pending federal approval, the federal government will apply its carbon tax and be responsible for redistributing collected revenues. Under the federal backstop, 90 per cent of revenues collected by the federal government will be returned to residents of N.B. through rebate cheques. The rebate, the amount of which will be determined by the federal government, is based on the amount of carbon tax collected in the province annually. The rebate will be issued by the federal government to individuals and families of N.B. The government expects the amount in N.B. to be close to an estimated annualized amount between $900‑$1,000 for a family of four.
Corporate tax measures
No corporate income tax rate changes were announced in this year’s budget. The current corporate income tax rates for 2023 are outlined below:
|
|
Small business corporations |
General corporations |
||
|
|
Rate |
Threshold |
Non‑M&P |
M&P |
|
New Brunswick |
2.50% |
$500,000 |
14.0% |
14.0% |
|
Combined federal and N.B. |
11.50% |
$500,000 |
29.0% |
29.0% |
Next steps
Contact your Baker Tilly advisor to learn more about how we can help you navigate the complexities of the Canadian tax system.
Meet the Author
Brenda L. Scott
Information is current to March 22, 2023. The information contained in this release is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavour to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act upon such information without appropriate professional advice after a thorough examination of the particular situation.