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.
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