On 18 March 2025, New Brunswick Minister of Finance and Treasury Board René Legacy tabled the province's fiscal 2025-26 budget. The budget contains no new taxes and no income tax increases.

The minister anticipates a deficit of CA$549m for 2025-26 and projects deficits for each of the next three years.

Following is a brief summary of the key tax measures.

Corporate income tax rates

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

New Brunswick's 2025 corporate income tax rates are summarized in Table A.

Table A — 2025 New Brunswick corporate income tax rates¹

¹ 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 Id.

⁴ An additional federal tax applies to banks and life insurers at a rate of 1.5% on taxable income (subject to a CA$100m exemption to be shared by group members).

Personal income tax rates

The budget does not include any changes to personal income tax rates.

The 2025 New Brunswick personal income tax rates are summarized in Table B.

Table B — 2025 New Brunswick personal income tax rates

For taxable income exceeding CA$177,882, the 2025 combined federal-New Brunswick personal income tax rates are outlined in Table C.

Table C — Combined 2025 federal and New Brunswick personal income tax rates

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

² The federal basic personal amount comprises two elements: the base amount (CA$14,538 for 2025) and an additional amount (CA$1,591 for 2025). The additional amount is reduced for individuals with net income exceeding CA$177,882 and is fully eliminated for individuals with net income exceeding CA$253,414. Consequently, the additional amount is clawed back on net income exceeding CA$177,882 until the additional tax credit of CA$239 is eliminated; this results in additional federal income tax (e.g., 0.32% on ordinary income) on net income between CA$177,883 and CA$253,414.

³ Id.

Goods and Services Tax/Harmonized Sales Tax (GST/HST)

As previously announced on 9 December 2024, the Government of New Brunswick is working with the federal government to rebate the 10% provincial portion of the HST for eligible purpose-built rental housing, applicable to construction that begins between 15 November 2024 and 31 December 2027 and is substantially completed by 31 December 2029.

For up-to-date information on the federal, provincial and territorial budgets, visit ey.com/ca/Budget.