March 25, 2025
Tax Highlights from the 2025 New Brunswick Budget
HIGHLIGHTS FROM THE NEW BRUNSWICK BUDGET
Minister of Finance René Legacy tabled the 2025/26 New Brunswick provincial budget on March 18, 2025.
The budget projects a $549 million deficit for the upcoming 2025/26 fiscal year and an increase in net debt of $929.2 million, bringing the total to $13.4 billion by the end of March 2026. The forecasted deficit for the nearly completed 2024/25 fiscal year now stands at $398.9 million, compared to the initially projected $40.8 million surplus.
On the income tax front, there are no changes to personal or corporate income tax rates for 2025.
The following pages summarize the changes announced in the budget. Please note that these changes remain proposals until passed into law by the provincial government.
PERSONAL TAX MATTERS
Personal income tax rates and tax brackets
There are no proposed changes to personal income tax rates. Tax brackets and other amounts have also been indexed by 2.7% to account for inflation. The table below outlines New Brunswick’s tax rates and tax brackets for 2025.
| TAXABLE INCOME RANGE | 2025 TAX RATES |
|---|---|
| First $51,306 | 9.4% |
| Over $51,306 to $102,614 | 14.0% |
| Over $102,614 to $190,060 | 16.0% |
| Over $190,060 | 19.5% |
The table below outlines the 2025 combined federal and provincial highest marginal tax rates for various types of income.
| INCOME TYPE | 2025 COMBINED TAX RATES |
|---|---|
| Regular income | 52.50% |
| Capital gains | 26.25% |
| Eligible dividends | 32.40% |
| Non-eligible dividends | 46.83% |
CORPORATE TAX MATTERS
Corporate income tax rates
There are no changes proposed to corporate income tax rates. The table below outlines New Brunswick’s tax rates and small business limit for 2025.
| CATEGORY | 2025 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 outlines the 2025 combined federal and provincial corporate income tax rates for various types of income earned by a Canadian Controlled Private Corporation (CCPC).
| INCOME TYPE | 2025 COMBINED TAX RATES |
|---|---|
| Small business income | 11.50% |
| Active income over $500,000 | 29.00% |
| Manufacturing and processing income | 29.00% |
| Investment income | 52.67% |
OTHER INITIATIVES
Response to U.S. tariffs
The province has introduced a $112 million support package to address the challenges posed by U.S. tariffs. This includes a $25 million investment in a business support program administered through Opportunities New Brunswick.
New spending for housing and HST rebate
The province is investing an additional $36.6 million in the New Brunswick Housing Corporation to help address current housing challenges.
As previously announced, the province has introduced a 100% rebate on the provincial portion of the HST for eligible purpose- built multi-unit rental housing projects that begin on or after November 15, 2024, and are substantially completed by December 31, 2029.
WE CAN HELP
Your financial advisor can help you assess the impact of these proposals on your personal finances or business affairs and show you ways to take advantage of their benefits or ease their impact.
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CI Global Asset Management is a registered business name of CI Investments Inc. © CI Investments Inc. 2025. All rights reserved.