TaxTips.ca - New Brunswick 2009 budget

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Atlantic Provinces -> New Brunswick -> 2009 Budget

New Brunswick 2009 Budget - March 17, 2009

See the New Brunswick Budget 2009 website for full details.

Personal Income Tax

Personal tax brackets, rates and credits

New Brunswick currently has four personal income tax brackets. The tax rates for these will be reduced each year beginning in 2009. The threshold levels of each bracket will be increased each year, as will the basic personal amount and the spousal amount. In 2012, the four-bracket structure will be replaced with two brackets. The 2009 rate changes are now reflected in the tables of marginal tax rates for New Brunswick.

The Low-Income Tax Reduction (LITR) is currently phased out at a rate of 5% of income over the base amount. This phase-out rate is reduced to 4% for 2009, and 3% thereafter.

Tax rates	2008	2009	2010	2011	2012 *	2012 as per 2011 Budget
Bracket 1	10.12%	9.65%	9.30%	9.10%	9.00%	9.10%
Bracket 2	15.48%	14.50%	12.50%	12.10%	12.00%	12.10%
Bracket 3	16.80%	16.00%	13.30%	12.40%	n/a	12.40%
Bracket 4	17.95%	17.00%	14.30%	12.70%	n/a	12.70%
* The 2011 NB Budget announced that all 2012 tax rates would remain at 2011 levels. It was not indicated that there would be any changes from the previously announced basic personal amount and spousal amount.
Basic personal amount	$8,395	$8,605	$8,777	$8,953	$9,132	$9,132
Spousal amount	$7,129	$7,307	$7,453	$7,602	$7,754	$7,754
LITR Phase-Out	5%	4%	3%	3%	3%	3%

The following will be the thresholds for each bracket:

2008 2009 2010 2011 2012 *

Bracket over to over to over to over to over to

1 $0 $34,836 $0 $35,707 $0 $36,421 $0 $37,150 $0 $37,893

2 34,836 69,673 35,707 71,415 36,421 72,843 37,150 74,300 37,893 75,786

3 69,673 113,273 71,415 116,105 72,843 118,427 74,300 120,796 75,786 123,212

4 over 113,273 over 116,105 over 118,427 over 120,796 over 123,212

* The 2011 NB Budget announced that all 2012 tax rates would remain at 2011 levels.
The actual tax bracket amounts were not provided. The lowest tax bracket
of $37,893 was provided in the 2009 NB Budget.
The above brackets are estimates based on a 2% increase.

Tuition Rebate

	Maximum lifetime rebate is doubled from $10,000 to $20,000
	Maximum annual rebate is doubled from $2,000 to $4,000

Low-Income Seniors' Benefit

	increased from $200 to $300 in 2009
	increased to $400 in 2010

To be eligible for the low-income seniors' benefit, a person must be a resident of New Brunswick on the last day of the previous taxation year, and must have received one of these federal benefits under the Old Age Security Act:

Guaranteed Income Supplement (65 years or older);

Allowance for Survivor Program (between 60 and 64 years old); or

Allowance Program (between 60 and 64 years old)

See March 3, 2010 Department of Finance news release regarding this benefit.

Small Business Investor Tax Credit (SBITC)

This tax credit provides a 30% non-refundable personal income tax credit on investments of up to $80,000, for a maximum credit of $24,000 per year for NB investors who invest in eligible small businesses in the province.

Effective for investments made after Mar17, 2009, the maximum annual investment will be increased from $80,000 to $250,000 per year, increasing the maximum annual tax credit to $75,000. Other amendments will allow a larger number of investors to participate in an investment project.

Labour-Sponsored Venture Capital Tax Credit (LSVC)

	increase in qualifying investment from $5,000 to $10,000
	tax credit rate will increase from 15% to 20%
	applies to shares purchased after March 17, 2009

Corporate Income Tax

small business limit increased from $400,000 to $500,000 effective January 1, 2009

general corporate tax rate reduced

	from 13% to 12% effective July 1, 2009
	to 11% effective July 1, 2010
	to 10% effective July 1, 2010
	to 8% effective July 1, 2011

Revised: July 24, 2011

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