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2021 New Brunswick provincial budget tax highlights

Mar 19, 2021

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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