Key tax updates from New Brunswick’s 2026–2027 budget
New Brunswick’s 2026–2027 budget, released March 17 2026, projects a $1.33 billion deficit, reflecting continued economic uncertainty and significant planned investment in provincial healthcare.
The following summary outlines of key tax measures and other notable announcements.
Personal tax measures
No personal income tax rate changes were announced in this year’s budget. The current combined federal and New Brunswick top marginal personal income tax rates for 2026 are outlined below.
| Personal (combined) federal and NB top marginal tax rates | |
| Rate | |
| Interest/regular income | 52.50% |
| Capital gains | 26.25% |
| Eligible dividends | 32.40% |
| Non-eligible dividends | 46.83% |
Corporate tax measures
No corporate income tax rate changes were announced in this year’s budget. The current corporate income tax rates for 2026 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 NB | 11.5% | $500,000 | 29.0% | 29.0% |
Other measures
Small Business Investor tax credit: The province announced that proposed legislation is expected in spring 2026, with the stated objective of encouraging productivity and investment.
Social Assistance Indexation: The budget proposes $4.4 million to index social assistance rates to inflation to help offset rising costs for eligible households.
Tolls on non-New Brunswick vehicles: The province announced plans for a toll booth near Aulac to be operational by 2028 to support road and bridge maintenance, with tolls expected to apply to out-of-province vehicles.
Underground economy: The budget proposes $1.2 million to establish a dedicated contraband tobacco enforcement team, and $667,000 to support efforts to prevent the sale of illegal lobster.
What this means for you
If you have questions about how New Brunswick’s 2026–2027 budget may affect you or your business, your Baker Tilly advisor can help you evaluate the potential impacts and identify planning opportunities. Connect with us to discuss your specific circumstances.
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