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Canada | New Brunswick budget 2024-25 holds tax rates steady, adds new credits and expands certain incentives
- The New Brunswick budget for 2024–2025 has been tabled.
- The budget contains no tax increases for businesses or individuals but makes other changes.
- This Alert summarizes the key tax measures.
On 19 March 2024, New Brunswick Minister of Finance and Treasury Board Ernie Steeves tabled the province's fiscal 2024-25 budget. The budget includes targeted tax measures affecting individuals but contains no income tax increases for businesses or individuals.
The minister anticipates a surplus of CA$41m million for 2024-25 and projects surpluses for each of the next two 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 2024 corporate income tax rates are summarized in Table A.
Table A — 2024 New Brunswick corporate income tax rates1
| NB | Federal and NB combined | |
| Small-business tax rate2 | 2.50% | 11.50% |
| General corporate tax rate2,3 | 14.00% | 29.00% |
Personal tax
No new personal income tax rates
The budget does not include any changes to personal income tax rates.
The 2024 New Brunswick personal income tax rates are summarized in Table B.
Table B — 2024 New Brunswick personal income tax rates
| First bracket rate1</sup > | Second bracket rate | Third bracket rate | Fourth bracket rate |
| CA$0 to CA$49,958 | CA$49,959 to CA$99,916 | CA$99,917 to CA$185,064 | Above CA$185,064 |
| 9.40% | 14.00% | 16.00% | 19.50% |
For taxable income exceeding CA$173,205, the 2024 combined federal-New Brunswick personal income tax rates are outlined in Table C.
Table C — Combined 2024 federal and New Brunswick personal income tax rates
| Bracket | Ordinary income1 | Eligible dividends | Non-eligible dividends |
| CA$173,206 to CA$185,0642 | 45.32% | 22.49% | 38.57% |
| CA$185,065 to CA$246,7522 | 48.82% | 27.32% | 42.59% |
| Above CA$246,752 | 52.50% | 32.40% | 46.83% |
Other personal tax measures
This budget proposes changes to the following personal credits/amounts:
- New nonrefundable personal income tax credits are introduced for eligible volunteer firefighters and search and rescue volunteers, effective for the 2024 taxation year. The budget did not provide any further details on these new credits.
- A CA$200 Low-Income Seniors' Affordability Supplement will be available for individuals eligible for the 2024 Low-Income Seniors' Benefit. Applications for the 2024 benefit will be available on 1 April 2024.
- Proposed legislation will be tabled to permanently increase the base amount of the Low-Income Seniors' Benefit from CA$400 to CA$600; the value of the benefit will be indexed to the Consumer Price Index annually, beginning with the 2025 benefit year.
Other tax measures
Tax on vaping products
The budget confirms the government's intention to join the federally coordinated vaping product taxation framework in 2024-25. Under the agreement, the Canada Revenue Agency will be responsible for administering and collecting the vaping duty, effective 1 January 2025.
In addition, a provincial excise duty will apply at a rate of rate of CA$1 per 2 milliliters or grams (ml(g)), or fraction thereof, for the first 10 ml(g) of vaping substance and CA$1 per 10 ml(g), or fraction thereof, for additional volumes.
For up-to-date information on the federal, provincial and territorial budgets, visit ey.com/ca/Budget.
For additional information concerning this Alert, please contact:
Ernst & Young LLP (Canada), New Brunswick
- Pauline Vautour, Dieppe
- Marc Léger, Dieppe
- Natacha Poirier, Dieppe
- Troy Stanley, St. John's
For a full listing of contacts and email addresses, please click on the Tax News Update: Global Edition (GTNU) version of this Alert.