2021-22 New Brunswick Budget Highlights
2021-22 New Brunswick Budget Highlights
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.
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.
Insights
-
Progress
May 20, 2022
Enhanced hospital GST / HST rebates for long-term care facilities
If you operate a long-term care facility and are currently only claiming the GST / HST rebate for charities or qualifying not-for-profit organizations, it may be time to revisit your eligibility for an enhanced hospital rebate announced in the 2022 Federal Budget.
-
Agility
May 19, 2022
Crypto asset mining – A review of recent proposals
Proposed amendments to tax rules around crypto assets could impact business engaged in crypto mining activities. We explore how new definitions shift GST / HST costs under the proposed changes.
-
Agility
May 17, 2022
The power of putting people first
For your organization to thrive in a modern and competitive workforce, you may need to shift your mindset and your approach towards employee satisfaction.
