March 18, 2021
Canada: New Brunswick issues budget 2021–22
On 16 March 2021, New Brunswick Minister of Finance and Treasury Board Ernie Steeves tabled the province’s fiscal 2021–22 budget. The budget contains no significant tax measures affecting individuals and corporations.
The Minister anticipates a deficit of CA$244.8 million1 for 2021–22 and projects deficits for each of the next two years.
The following is a brief summary of the key tax measures.
Business tax measures
Corporate tax rates
No changes are proposed to the corporate tax rates or the $500,000 small-business limit.
New Brunswick’s 2021 corporate tax rates are summarized in Table A.
Table A – 2021 New Brunswick (NB) corporate tax rates
* Rates represent calendar-year rates unless otherwise indicated.
Personal income tax rates
The budget does not include any changes to personal income tax rates.
The 2021 New Brunswick personal tax rates are summarized in Table B.
Table B – 2021 New Brunswick personal tax rates
For taxable income in excess of $151,978, the 2021 combined federal-New Brunswick personal income tax rates are outlined in Table C.
Table C – Combined federal and New Brunswick 2021 personal tax rates
* The rate on capital gains is one-half the ordinary income tax rate.
Other tax measures
Effective 1 April 2021, the province will increase its tax on carbon-emitting products from $30 per tonne to $40 per tonne, with a result of increasing its carbon tax by 2.21¢ per liter for gasoline and by 2.68¢ per liter for diesel.
For additional information with respect to this Alert, please contact the following:
Ernst & Young LLP (Canada), Dieppe