Sign up for tax alert emails    GTNU homepage    Tax newsroom    Email document    Print document    Download document

March 27, 2023

Canada: New Brunswick issues budget 2023/24

  • The New Brunswick budget for 2023/2024 has been tabled.

  • The budget contains no new taxes and no tax increases.

  • This Alert summarizes the key tax measures.

Executive summary                                                                                                                

On 21 March 2023, New Brunswick Minister of Finance and Treasury Board Ernie Steeves tabled the province’s fiscal 2023/24 budget. The budget contains no new taxes and no tax increases.

The Minister anticipates a surplus of CA$40.3 million1 for 2023/24 and projects surpluses for each of the next two years.

The following is a brief summary of the key tax measures.

Detailed discussion

Business tax measures

Corporate income tax rates

No changes are proposed to the corporate income tax rates or the $500,000 small-business limit.

New Brunswick’s 2023 corporate income tax rates are summarized in Table A.

Table A – 2023 New Brunswick (NB) corporate income tax rates1



Federal and NB combined

Small-business tax rate2



General corporate tax rate2, 3



The rates represent calendar-year-end rates unless otherwise indicated.

2 The federal corporate income tax rates for manufacturers of qualifying zero-emission technology are reduced to 7.5% for eligible income otherwise subject to the 15% federal general corporate income tax rate or 4.5% for eligible income otherwise subject to the 9% federal small-business corporate income tax rate. These reductions are not reflected in the combined federal and New Brunswick rates above.

3 An additional tax applies to banks and life insurers at a rate of 1.5% on taxable income (subject to a $100 million exemption to be shared by group members), effective for tax years ending after 7 April 2022 (prorated for tax years straddling this effective date).

Personal tax

Personal income tax rates

The budget does not include any changes to personal income tax rates other than the previously announced rate reductions last fall, which were effective for the 2023 and subsequent taxation years.

The 2023 New Brunswick personal income tax rates are summarized in Table B.

Table B – 2023 New Brunswick personal income tax rates

First-bracket rate

Second-bracket rate

Third-bracket rate

Fourth-bracket rate

$0 to $47,715

$47,716 to $95,431

$95,432 to $176,756

Above $176,756





For taxable income exceeding $165,430, the 2023 combined federal–New Brunswick personal income tax rates are outlined in Table C.

Table C – Combined 2023 federal and New Brunswick personal income tax rates


Ordinary income1

Eligible dividends

Non-eligible dividends

$165,431 to $176,7562




$176,757 to $235,6752




Above $235,675




1 The capital gains rate is one-half the ordinary income tax rate.

2 The federal basic personal amount comprises two elements: the base amount ($13,521 for 2023) and an additional amount ($1,479 for 2023). The additional amount is reduced for individuals with net income exceeding $165,430 and is fully eliminated for individuals with net income exceeding $235,675. Consequently, the additional amount is clawed back on net income exceeding $165,430 until the additional tax credit of $222 is eliminated; this results in additional federal income tax (e.g., 0.32% on ordinary income) on net income between $165,431 and $235,675.

Other tax measures

Property tax

Legislation introduced in November 2022 accelerated previously announced measures from the 2022–23 budget regarding provincial property tax rate reductions. These proposed property tax rate reductions, which were intended to be phased in over the next two taxation years, will be fully implemented for the 2023 taxation year. 

Carbon taxation

As previously announced, the Government of New Brunswick has opted to adopt the federal carbon backstop for carbon taxation. Until recently, the province had applied a made-in-New Brunswick approach to carbon taxation.


For additional information with respect to this Alert, please contact the following:

Ernst & Young LLP (Canada), Dieppe



  1. Currency references in this Alert are to the CA$.

The information contained herein is general in nature and is not intended, and should not be construed, as legal, accounting or tax advice or opinion provided by Ernst & Young LLP to the reader. The reader also is cautioned that this material may not be applicable to, or suitable for, the reader's specific circumstances or needs, and may require consideration of non-tax and other tax factors if any action is to be contemplated. The reader should contact his or her Ernst & Young LLP or other tax professional prior to taking any action based upon this information. Ernst & Young LLP assumes no obligation to inform the reader of any changes in tax laws or other factors that could affect the information contained herein.


Copyright © 2024, Ernst & Young LLP.


All rights reserved. No part of this document may be reproduced, retransmitted or otherwise redistributed in any form or by any means, electronic or mechanical, including by photocopying, facsimile transmission, recording, rekeying, or using any information storage and retrieval system, without written permission from Ernst & Young LLP.


Any U.S. tax advice contained herein was not intended or written to be used, and cannot be used, by the recipient for the purpose of avoiding penalties that may be imposed under the Internal Revenue Code or applicable state or local tax law provisions.


"EY" refers to the global organisation, and may refer to one or more, of the member firms of Ernst & Young Global Limited, each of which is a separate legal entity. Ernst & Young Global Limited, a UK company limited by guarantee, does not provide services to clients.


Privacy  |  Cookies  |  BCR  |  Legal  |  Global Code of Conduct Opt out of all email from EY Global Limited.


Cookie Settings

This site uses cookies to provide you with a personalized browsing experience and allows us to understand more about you. More information on the cookies we use can be found here. By clicking 'Yes, I accept' you agree and consent to our use of cookies. More information on what these cookies are and how we use them, including how you can manage them, is outlined in our Privacy Notice. Please note that your decision to decline the use of cookies is limited to this site only, and not in relation to other EY sites or Please refer to the privacy notice/policy on these sites for more information.

Yes, I accept         Find out more