Atlantic Provinces -> New Brunswick -> New Brunswick Dividend Tax Credits
New Brunswick Dividend Tax Credits
New Brunswick and other provinces provide a personal non-refundable dividend tax credit for income from Canadian dividends.
NB Eligible Dividends
NB Income Tax Act, 2000 s. 35
The New Brunswick eligible dividend tax credit is defined as a percentage of the taxable dividend. The rate for 2016 and 2017 was revised by the NB 2016 Budget.
| Year | 2009 | 2010 | 2011 | 2012
- 2015 |
2016 | 2017
& later |
| Gross-up % | 45% | 44% | 41% | 38% | 38% | 38% |
| eligible dividend tax credit as a % of | ||||||
| grossed-up dividends | 12% | 12% | 12% | 12% | 13.5% | 14% |
| actual dividends | 17.40% | 17.28% | 16.92% | 16.56% | 18.63% | 19.32% |
NB Non-Eligible Dividends
NB Income Tax Act, 2000 s. 35
For non-eligible dividends, the New Brunswick dividend tax credit is defined as a percentage of the taxable dividend.
The Federal 2017 Fall Economic Statement announced that the gross-up rate for non-eligible dividends would be reduced to 16% for 2018, and to 15% for 2019 and later years. New Brunswick subsequently tabled Bill 23, An Act to Amend the New Brunswick Income Tax Act, on November 14, 2017 to revise the dividend tax credit rate for non-eligible dividends, as reflected in the table below.
The current and past New Brunswick rates for non-eligible dividends are shown in the following table.
| NB Dividend Tax Credit Rate for Non-Eligible Dividends | ||||
| Year | Gross-up Rate |
%of
Federal Gross-up |
% of Grossed-up Dividend |
% of Actual Dividend |
| 2019+ | 15% | 21.08% | 2.750% | 3.16% |
| 2018 | 16% | 20.68% | 2.853% | 3.31% |
| 2017 | 17% | 22.33% | 3.245% | 3.80% |
| 2016 | 17% | 24.95% | 3.625% | 4.24% |
| 2015 | 18% | 26.2% | 4.0% | 4.72% |
| 2014 | 18% | 34.7% | 5.3% | 6.25% |
| 2013 & earlier | 25% | 26.5% | 5.3% | 6.63% |
The New Brunswick table of marginal tax rates show the marginal tax rates for eligible and non-eligible dividends and other income.
Revised: October 26, 2023