New Brunswick Provincial Budget Tax Updates 2024-2025

March 21, 2024


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 incomeRate
$49,958 or less9.40%
More than $49,958 but not more than $99,91614.00%
More than $99,916 but not more than $185,06416.00%
More than $185,06419.50%

The current personal combined income tax rates for top marginal tax rate in 2024 are outlined below:

Taxable income above $246,752Rate
Interest/regular income52.50%
Capital gains26.25%
Eligible dividends32.40%
Non‑eligible dividends46.83%

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:

RateFederal and provincial tax rate
Small-business tax rate2.50%11.50%
Manufacturing and processing tax rate14.00%29.00%
General corporate tax rate14.00%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

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