February 2, 2016, No. 2016-06. New Brunswick Finance Minister Roger Melanson delivered the province’s 2016 budget on February 2, 2016. The budget anticipates a deficit of $347 million for the 2016-2017 fiscal year, with anticipated deficits of $267 million for 2017-2018 and $167 million for 2018-2019. The budget increases the HST to 15% (from 13%), increases the corporate income tax to 14% (from 12%) and reduces personal income taxes for individuals with taxable income over $150,000, among other changes.
Highlights of tax measures announced in the budget are summarized below.
Personal income tax rates
The budget eliminates the top marginal personal income tax rate of 25.75% and lowers the personal income tax rate for individuals with taxable income over $150,000 to 20.3% (from 21%). These changes are retroactive to January 1, 2016. In addition, beginning January 1, 2017, the top marginal income bracket will be indexed consistently with all other income brackets in New Brunswick.
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Information is current to February 2, 2016. The information contained in this TaxNewsFlash-Canada is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavour to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act upon such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG’s National Tax Centre at 416.777.8500.