On January 30, 2018, New Brunswick Finance Minister, The Hon. Cathy Rogers, tabled the province’s 2018–19 budget. The province will continue to focus on the following three areas: health care, education and jobs.
The province has revised the projected deficit for 2017–18 to $115.2 million and has projected a deficit of $188.7 million for 2018–19. The province, however, is projecting a surplus of $69 million by 2021–22. Yet the province’s debt will continue to increase and is projected to reach $14.5 billion by the end of 2018–19.
There are no new tax measures or tax increases included in this budget. The budget contains relatively few taxation changes other than a decrease in corporate tax rates for small businesses.
Business tax measures
Corporate tax rates
No changes to the $500,000 small-business limit are proposed. However, the small business tax rate will decrease from 3% to 2.5% effective April 1, 2018.
Personal tax measures
Personal income tax rates
No changes to personal income tax rates are proposed. The rates for 2018 are as follows:
- 9.68% on the first tax bracket (up to $41,675)
- 14.82% on the second tax bracket (from $41,676 up to $83,351)
- 16.52% on the third tax bracket (from $83,352 up to $135,510)
- 17.84% on the fourth tax bracket (from $135,511 up to $154,382)
- 20.30% on the fifth tax bracket (over $154,383)