2017 New Brunswick Budget Report

On February 7, 2017, New Brunswick Finance Minister Cathy Rogers delivered the province’s 2017 budget.

The budget anticipates a deficit of $192 million for the 2017-2018 fiscal year, with anticipated deficits of $117 million for 2018-2019 and $24 million for 2019-2020.

The budget reduces the Small Business Income Tax rate to 3% (from 3.5%), effective April 1, 2017.

The 2017-18 provincial budget tabled in the legislature today aimed to demonstrate that the government is listening to New Brunswickers, honouring its commitments, and investing responsibly in areas that will lead to a stronger New Brunswick.”

Highlights

  • Deficit of $192 Million predicted for 2017-18
  • Deficits of $117 and $24 million for 2018-2019 and 2019-2020 respectively
  • Reduction to the small business rate by 0.5% from 3.5% to 3%!
  • Development of new Carbon pricing model to meet federal requirements

Personal Tax Measures

Personal income tax rates – No changes were announced!

No changes to personal tax rates were announced. However, New Brunswick’s dividend tax credit for eligible and non-eligible dividends were adjusted in 2016.

As a result, New Brunswick’s personal income tax rates effective January 1, 2017 are as follows:

Personal Combined Federal/Provincial Top Marginal Rates

 

2017

Interest and regular income

53.30%

Capital gains

26.65%

Eligible dividends

33.51%

Non-eligible dividends

45.96%

Provincial Personal Tax Rates

1st Bracket

2nd Bracket

3rd Bracket

4th Bracket

5th Bracket

6th Bracket

$0 to $41,059

$41,060 to $82,119

$82,120 to $133,507

$133,508 to $152,100

$152,101 to $202,800

Above $202,800

9.68%

14.82%

16.52%

17.84%

20.30%

20.30%

New Brunswick Non-Refundable Tax Credits

The government confirmed today that personal tax credits for 2016 will be indexed by 1.013%. The maximum tax credit amounts and actual New Brunswick tax credits for 2015 and 2016 are set out below.

New Brunswick Non-Refundable Tax Credits

 

2016

2017

Maximum Amount

New Brunswick Tax Credit

Maximum Amount

New Brunswick Tax Credit

Basic Personal Amount

$9,758

945

9,895

958

Spousal Amount

8,286

802

8,402

813

Eligible dependent amount

8,286

802

8,402

813

Age amount

4,765

461

4,831

468

Infirm dependent amount

4,608

446

4,673

452

CPP Contributions

2,544

246

2,564

248

EI Contributions

955

92

836

81

Pension income amount

1,000

97

1,000

97

Disability amount

7,900

765

8,011

775

Disability supplement

4,608

446

4,673

452

Tuition and education amounts

Variable

Variable

Variable

Variable

Adoption expenses

0

N/A

0

N/A

Medical expenses

Variable

Variable

Variable

Variable

Medical expenses (other dependents)

N/A

N/A

N/A

N/A

Caregiver amount

4,609

446

4,673

452

Interest on student loans

Variable

Variable

Variable

Variable

Donations & Gifts
-first $200
- over $200


200
75% of income


20
Variable


200
75% of income


20
Variable

In general, credits are multiplied by 9.68% to arrive at the deduction from New Brunswick Tax.  In the case of donations and gifts over $200, the credit is 17.95%

Corporate Tax Measures

Corporate Tax Rates

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

Effective 1 April 2017, the small-business rate will decrease to 3% from 3.5%. The minister announced they are still committed to reducing the small-business tax rate to 2.5% over the course of the current government’s mandate.

New Brunswick’s corporate income tax rates effective January 1, 2017 are as follows:

Corporate Income Tax Rates – As of January 1, 2017

 

New Brunswick

Combined Federal & New Brunswick

 

2017

2017

General

14%

29%

M&P

14%

29%

Small business1, 2

3.5/3.0%

14/13.5%

1 The budget reduces the Small Business Income Tax rate to 3% (from 3.5%), effective April 1, 2017.
2 On first $500,000 of active business income.

Other Measures

Other Personal Tax Measures

The minister announced an increase in the amount it provides to New Brunswickers to help pay for the cost of day care. No details were mentioned.

New Tuition Access Bursary (TAB)

In 2016, the province announced the new Tuition Access Bursary (TAB), providing upfront, non-repayable assistance to students from families with an annual income of $60,000 or less attending publicly funded college programs or undergraduate university programs in New Brunswick.

Elimination of Provincial Tuition and Education Tax Credit

As a result of the implementation of the TAB, the province announced in 2016 the elimination of the provincial tuition and education tax credit effective 1 January 2017. Students will still be able to claim unused tuition and education credits from years prior to 2017 in 2017 and subsequent years.

Minimum Wage

The minister announced an increase in the minimum wage to $11 per hour, effective 1 April 2017.

(Source: New Brunswick Government)

"Just switched to FBC last year after I got a bad report from our last accountant from the bank. So far so good, I am very happy with it. I’m a travelling salesman and I do a few other things, I’ve got a farm on the go. So far so good! Things are looking promising for the next couple years."
- Bart Biemond, Brockville, ON