New Brunswick

Lower rate

The lower rates of New Brunswick income tax are:

• 3% from January 1, 2003;
• 2.5% effective July 1, 2004;
• 2% effective July 1, 2005;
• 1.5% effective July 1, 2006;
• 1% effective July 1, 2007.

The income eligible for the lower rate is determined using the New Brunswick business limit.  The New Brunswick business limit is:

• $400,000 effective January 1, 2003;
• $425,000 effective July 1, 2004;
• $450,000 effective July 1, 2005;
• $475,000 effective July 1, 2006;
• $500,000 effective July 1, 2007.

You have to prorate these amounts using the number of days in each period.

Higher rate

The higher rate of New Brunswick income tax is 13% effective January 1, 2003. This rate applies to all income not eligible for the lower rates.

For more information, see Dual tax rates.

Reporting the tax

You can use Schedule 366, New Brunswick Corporation Tax Calculation, to help you calculate the New Brunswick tax before the application of credits. You do not have to file it with the return. See the schedule for more details.

On line 225 of Schedule 5, Tax Calculation Supplementary - Corporations, enter the amount of tax calculated.

See also New Brunswick tax on large corporations.

Claiming the credits

New Brunswick offers different tax credits. Details of each credit can be found in the following pages and their associated schedules:

• Political contribution tax credit
• Foreign tax credit
• Non-refundable research and development tax credit
• Refundable research and development tax credit
• Film tax credit

Forms and publications

• Schedule 366, New Brunswick Corporation Tax Calculation
• Schedule 5, Tax Calculation Supplementary - Corporations

Government partners

• New Brunswick (provincial site)