Last updated: Apr. 6, 2022
New Brunswick’s Finance and Treasury Board Minister, Ernie Steeves, delivered the province’s 2022 budget on March 22, 2022.
This budget focuses on building a stronger economy and vibrant communities, while also improving health care and protecting vulnerable populations.
The budget anticipates a surplus of $487.8 million for 2021-22, compared to the $245 million deficit projected for the same fiscal year in last year’s budget. The province projects surpluses of $35.2 million for 2022-23, $21 million for 2023-24, and $39 million for 2024-25.
The budget does not include any new changes to the corporate or personal tax rates; however, it increases New Brunswick’s basic personal amount from $10,817 to $11,720 and the low-income tax reduction threshold from $18,268 to $19,177, effective for the 2022 taxation year. Budget 2022 also decreases certain property tax rates over a three-year period.
- Spending on affordable housing will increase by $6.3 million.
- $3.2 billion allocated towards health care — a 6.4% increase over 2021-22.
- $110 million invested in the early learning and childcare sector.
- $38.6 million to increase wages for a variety of home and community support services.
- $40 million allocated personal income tax relief.
- Minimum wage will be increased to $13.75 per hour by October ($1 per hour increase on April 1, 2022, and another $1 per hour increase on October 1, 2022).
Personal Tax Measures
Personal income tax rates – No changes announced
The budget does not include any new taxes or tax rate changes for individuals. As a result, New Brunswick’s personal income tax rates effective January 1, 2022 are as follows:
Personal Combined Federal/Provincial Top Marginal Rates
Combined Federal & New Brunswick 2022 Personal Tax Rates
New Brunswick Non-Refundable Tax Credits
The government confirmed today that personal tax credits for 2022 will be indexed by 1.024%. The maximum tax credit amounts and actual New Brunswick tax credits for 2021 and 2022 are set out below.
Corporate Tax Measures
Corporate tax rates
No changes are proposed to the general corporate tax rate, or to the $500,000 small-business limit.
New Brunswick’s corporate income tax rates effective January 1, 2022 are as follows:
Indirect Tax Measures
Carbon Tax (Fuel Tax)
Effective April 1, 2022, the provincial tax on carbon-emitting products will increase from $40 per tonne to $50 per tonne, as required by the federal backstop. As a result, prices will increase by 2.21¢ per litre for gasoline and 2.68¢ per litre for diesel.
Other Tax Measures
Previously announced measures from the 2020–2021 budget that were put on hold due to the global pandemic will move forward as part of this budget.
The budget proposes the following three-year phased-in rate reductions:
- a 50% reduction of property tax rates on non-owner-occupied residential properties,
- a 15% reduction of property tax rates on other residential properties, including nursing
- homes; and,
- a 15% reduction of property taxes on non-residential properties.
It is expected that property tax bills for the 2022 taxation year will be issued April 1 and will reflect the first phase of tax rate reductions.
New Brunswick announced an additional $500 million invested in early learning and childcare over the next five years to support the $10/day childcare agreement with the federal government.
$47 million is allocated towards the Climate Change Fund ($11 million increase from last year) to support climate-related initiatives.
To protect tenants, the government is imposing a one-year cap of 3.8% on allowable rent increases, retroactive to January 1, 2022
FBC was founded on the belief that Canadians should receive every benefit of filing their taxes. Three-generations later, our family-owned business continues to support farmers, truckers, trades and other small businesses minimize their taxes, simplify their books, and pay their employees.
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