On March 16, 2021, the New Brunswick government released their 2021 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 2021 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% |
|
Other-than-eligible dividends |
47.75% |
Corporate tax measures
No corporate income tax rate changes were announced in this year’s budget. The current corporate income tax rates for 2021 are outlined below:
|
|
Small business corporations |
General corporations |
||
|
|
Rate |
Threshold |
Non-M&P |
M&P |
|
Federal |
9.0% |
$500,000 |
15.0% |
15.0% |
|
N.B. |
2.5% |
$500,000 |
14.0% |
14.0% |
|
Combined |
11.5% |
$500,000 |
29.0% |
29.0% |
Other tax measures
Effective April 1, the province will increase its tax on carbon emitting products from $30 per tonne to $40 per tonne, as required by the federal backstop. This will result in a carbon tax increase of 2.21 cents per litre for gasoline and 2.68 cents per litre for diesel.
Next steps
Contact your Baker Tilly advisor to learn more about how we can help navigate the complexities of the Canadian tax system.
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