New Brunswick Provincial Budget Tax Updates 2024-2025
Overview
On March 19, 2024, New Brunswick’s government has presented its 2024-2025 budget “Stronger than Ever: Let’s Keep Building”. This comprehensive summary highlights the key changes that will influence New Brunswick’s tax environment in the coming years.
Personal Income Tax Measures
There are no proposed changes to personal income tax rates for 2024.
The income tax rates for the 2024 taxation year, based your taxable income, are as follows:
| Taxable income | Rate |
| $49,958 or less | 9.40% |
| More than $49,958 but not more than $99,916 | 14.00% |
| More than $99,916 but not more than $185,064 | 16.00% |
| More than $185,064 | 19.50% |
The current personal combined income tax rates for top marginal tax rate in 2024 are outlined below:
| Taxable income above $246,752 | Rate |
| Interest/regular income | 52.50% |
| Capital gains | 26.25% |
| Eligible dividends | 32.40% |
| Non‑eligible dividends | 46.83% |
New Credit for Volunteer Firefighters and Search and Rescue Volunteers
In order to help support recruitment and retention, and recognize the contribution of these valued first responders, the Budget introduces a new non-refundable personal income tax credits for eligible volunteer firefighters and search and rescue volunteers.
This tax credit, which we do not have any further details of at the moment, will be effective for the 2024 taxation year.
Additional Support to Low-Income Seniors
To provide additional support to low-income seniors in New Brunswick, a $200 Low-Income Seniors’ Affordability Supplement was provided to recipients of the 2023 Low-Income Seniors’ Benefit. This $200 supplement will similarly be extended to eligible individuals for the 2024 Low-Income Seniors’ Benefit. Applications for the 2024 benefit will open on April 1.
Additionally, proposed legislative amendments aim to permanently raise the base amount of the Low-Income Seniors’ Benefit from $400 to $600. This increase will be accompanied by indexing the benefit’s value to the Consumer Price Index annually, starting in the 2025 benefit year.
Corporate Income Tax Measures
There are no proposed changes to corporate income tax rates or the $500,000 small-business limit for 2024.
The corporate income tax rates for New Brunswick in 2024 are as follows:
| Rate | Federal and provincial tax rate | |
| Small-business tax rate | 2.50% | 11.50% |
| Manufacturing and processing tax rate | 14.00% | 29.00% |
| General corporate tax rate | 14.00% | 29.00% |
Other Tax Measures
Tax on Vaping Products
The budget confirms New-Brunswick’s intent to enter into a coordinated vaping product taxation agreement with the federal government, with an intended implementation date of January 1, 2025.
The federal government will oversee the administration and enforcement of the coordinated vaping duty. In conjunction with the existing federal excise duty, a provincial excise duty rate of $1 per two milliliters or grams, or fraction thereof, will be implemented for the initial ten milliliters or grams of vaping substance. A rate of $1 per ten milliliters or grams, or fraction thereof, will be applied to additional volumes. This excise duty is calculated based on the volume of vaping substance contained within each vaping product.
Increased Flexibility and Efficiency
In an effort to enhance administrative efficiency and accessibility, legislative amendments will be introduced, aiming to empower the government with the flexibility required for timely delivery of provincially administered programs, alongside expanding accessibility to Canada Revenue Agency tax filer data.
More Information
For further information, visit https://www2.gnb.ca/content/gnb/en/corporate/promo/budget.html
