Finance Minister Ernie Steeves tabled the 2019 New Brunswick provincial budget on March 19, 2019. The budget projects a surplus of $23 million for the 2019-2020 fiscal year. The budget also projects surpluses of $33 million for 2020-2021, $63 million for 2021-2022 and $71 million for 2022-2023.
The forecast for the 2018-2019 fiscal year now stands at a surplus of $4.5 million, compared to an earlier budget projection by the previous government of a $188.7 million deficit.
On the income tax side, there were no increases or decreases to personal or corporate income tax rates for 2019.
The following pages are a summary of the changes announced in the budget. Please note that these changes are still proposals until passed into law by the provincial government.
PERSONAL TAX MATTERS
Personal income tax rates and tax brackets
The 2019 budget leaves personal income tax rates unchanged from 2018. Tax brackets and other amounts have been indexed by 2.2% to recognize the impact of inflation. The table below shows New Brunswick tax rates and brackets for 2019.
| Taxable income range | 2019 tax rates |
| First $42,592 | 9.68% |
| $42,593 - $85,154 | 14.82% |
| $85,185 - $138,491 | 16.52% |
| $138,492 - $157,778 | 17.84% |
| $157,779 and over | 20.30% |
The table below shows the 2019 combined federal and provincial highest marginal tax rates for various types of income.
| Type of income | 2019 combined tax rates |
| Regular income | 53.30% |
| Capital gains | 26.65% |
| Eligible dividends | 33.51% |
| Non-eligible dividends | 47.75% |
Tuition tax credit
The budget proposes to reintroduce the New Brunswick tuition tax credit eliminated under the previous government. Individuals will be able to claim this personal income tax credit when filing their personal tax return in 2020.
CORPORATE TAX MATTERS
Corporate income tax rates
There were no changes proposed to corporate income tax rates. The table below shows New Brunswick tax rates and the small business limit for 2019.
| Category | 2019 tax rates |
| General rate | 14.0% |
| Manufacturing and processing rate | 14.0% |
| Investment income rate | 14.0% |
| Small business rate | 2.5% |
| Small business limit | $500,000 |
The table below shows the 2019 combined federal and provincial corporate income tax rates for various types of income earned by a Canadian Controlled Private Corporation (CCPC).
| Type of income | 2019 combined tax rates |
| Small business income | 11.5% |
| Active income over $500,000 | 29.0% |
| Manufacturing and processing income | 29.0% |
| Investment income | 52.7% |
Small business corporate tax rate and passive income
New Brunswick will not parallel federal measures which, effective January 1, 2019, phase out access to the federal small business corporate tax rate based on the amount of passive investment income a corporation earns.
OTHER PROPOSALS
Administrative measuresThe government announced a revised regulatory environment for repayable financial assistance programs in agriculture, aquaculture and fisheries sectors.
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