2024 New Brunswick budget tax highlights
On March 19, the New Brunswick government released its 2024 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 2024 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% |
Low-Income Seniors’ Benefit
The budget proposes to amend the New Brunswick Income Tax Act to provide a permanent benefit increase of $200 – from $400 to $600 – with the value of the benefit indexed to the consumer price index annually.
New Brunswick Workers Benefit
A one-time, non-taxable benefit in the amount of $300 will be available for eligible working individuals. More details to follow.
Non-refundable personal income tax credits
For the 2024 taxation year, the government is proposing a new non‑refundable personal income tax credit for eligible volunteer firefighters and search and rescue volunteers. More details to come.
Corporate tax measures
No corporate income tax rate changes were announced in this year’s budget. The current corporate income tax rates for 2024 are outlined below:
|
|
Small business corporations |
General corporations |
||
|
|
Rate |
Threshold |
Non-M&P |
M&P |
|
N.B. |
2.5% |
$500,000 |
14.0% |
14.0% |
|
Combined federal and N.B. |
11.5% |
$500,000 |
29.0% |
29.0% |
Other tax measures
Vaping product duty
With intended implementation by Jan. 1, 2025, the provincial government plans to enter into a coordinated vaping product taxation agreement with the federal government. Under the agreement, the federal government will be responsible for administration and enforcement of the coordinated vaping duty.
In addition to the existing federal excise duty, a provincial excise duty rate of $1 per two millilitres or grams (or fraction thereof) for the first 10 millilitres or grams of vaping substance, and $1 per 10 millilitres or grams (or fraction thereof) for additional volumes will apply. The duty is based on the volume of vaping substance in each vaping product.
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
Sean Grant-Young
Information is current to March 20, 2024. 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.