Highlights of the 2016 New Brunswick Budget

  • HST will be increased from 13% to 15% as of July 1, 2016.
  • The General Corporate Tax Rate will increase from 12% to 14%. This rate matches NFLD but is still lower than NS and PEI’s rate of 16%.
  • Retroactive to January 1, 2016 the NB personal tax rates will be reduced for taxable income over $150,000 and $200,000. The combined federal-provincial rate for incomes over $150,000 will be 49.3% for 2016 while incomes greater than $200,000 will see a combined rate of 53.3%.
  • Tobacco tax will also increase and the Financial Corporation Capital tax rate will increase from 4-5%.
  • Although news stories speculated that Highway Tolls would be implemented, the option to increase HST was chosen.
  • The government plans to have a surplus by 2020-2021.