Atlantic Provinces -> New Brunswick -> New Brunswick Budgets -> 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 (1) | 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% |
|
(1) The 2011
NB Budget announced that the top tax rate in 2011 will remain
at 14.3%, |
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| 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 (1) | ||||||
| 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 | |||||
| (1) 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. |
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 | 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 Low-Income Seniors' Benefit on the NB website.
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
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Revised: March 20, 2024