New Brunswick Government Building

2021-22 New Brunswick Budget Highlights

May 06, 2021

2021-22 New Brunswick Budget Highlights

Synopsis
5 Minute Read

New Brunswick Finance Minister Ernie Steeves tabled the Province’s 2021-22 Budget on March 16, 2020, focusing on addressing public health challenges and supporting the Province’s economic recovery.

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Insight
Performance Insight Tax Services

On Tuesday, March 16, 2021, New Brunswick Finance Minister Ernie Steeves tabled the Province’s 2021-22 Budget. Titled Reinventing New Brunswick Together, Budget 2021-22 focuses on addressing public health challenges and supporting the Province’s economic recovery.

The Province projects a deficit of $12.7 million for 2020-21 and forecasts a deficit of $244.8 million in 2021-22.

The following are highlights of the tax measures announced:

A. Corporate Tax Measures

Corporate Tax Rates

No new 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 Rate

General Rate

 

Rate

Threshold

Non-M&P

M&P

Federal

9.0%

$500,000

15.0%

15.0%

New Brunswick

2.5%

$500,000

14.0%

14.0%

Combined

11.5%

 

29.0%

29.0%

B. Personal Tax Measures

Personal Tax Rates

No new personal income tax rate changes were announced in this year’s Budget. The top marginal personal income tax rate for New Brunswick is 20.3 percent for 2021. The current top combined federal and New Brunswick marginal rates for 2021 are as follows:

Salary, business income, interest

53.30%

Capital gains

26.75%

Eligible dividends

33.51%

Non-eligible dividends

47.75%

C. Other Measures

Carbon Tax

Effective April 1, 2021, the Province will increase its tax on carbon emitting products from $30 per tonne to $40 per tonne. This will result in a carbon tax increase of 2.21¢ per litre for gasoline and 2.68¢ per litre for diesel.

Contact your local MNP Advisor

Contact your local MNP Advisor for more information.

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