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The budget addresses the evolving landscape of US tariffs with a proposed tariff support package of $112 million and a $50 million contingency. The tariff support package will be allocated to existing programs with $25 million being allocated through Opportunities New Brunswick.
A deficit of $399 million is projected for the 2024-2025 fiscal year, compared to a projected $41 million surplus in the previous budget. This reflects restated revenue and expense due to government reorganization.
Fiscal projections for the next four years are as follows:
| Year | Projected surplus / (deficit) |
|---|---|
|
2025-26 |
($599 million) including a $50 million contingency related to tariffs |
|
2026-27 |
($447 million) |
|
2027-28 |
($304 million) |
|
2028-29 |
($144 million) |
The budget makes no changes to the corporate tax rates or the $500,000 small business limit.
2025 combined federal and provincial corporate tax rates:
| Small business tax rate | General corporate tax rate |
|---|---|
|
11.5% |
29.0% |
There are no proposed changes to the personal tax rates or personal tax credits. The indexed combined federal and provincial personal tax brackets and marginal tax rates for 2025 are as follows:
| Tax brackets | Marginal tax rates |
|---|---|
|
$51,306 or less |
24.40% |
|
$51,307 - $57,375 |
29.00% |
|
$57,376 - $102,614 |
34.50% |
|
$102,615 - $114,750 |
36.50% |
|
$114,751 - $177,882 |
42.00% |
|
$177,883 - $190,060 |
45.00% |
|
$190,061 - $253,414 |
48.50% |
|
$253,415 and over |
52.50% |
The top combined federal and provincial marginal tax rates for 2025 are as follows:
| Type of income | Tax rate |
|---|---|
|
Salary/interest income |
52.50% |
|
Capital gains |
26.25% |
|
Eligible dividends |
32.40% |
|
Non-eligible dividends |
46.83% |
There are no proposed changes to the current 15% HST rate, which is composed of a 5% federal component and a 10% provincial component.
As announced in December 2024, the province introduced legislation to rebate 100% of the provincial portion of HST on multi-unit residential housing units where construction began after November 14, 2024. This rebate mirrors the currently enacted rebate available for the federal portion of HST on similar properties.
Additionally, as announced in December 2024, the province is rebating residential electricity customers with a 10% credit equal to the 10% provincial portion of HST. This program began January 1, 2025.
Have questions? Let’s talk. Contact your local advisor or reach out to us here.
Visit our Budget 2025 hub to learn more about all federal and provincial budgets.
Disclaimer
The information contained herein is general in nature and is based on proposals that are subject to change. It is not, and should not be construed as, accounting, legal or tax advice or an opinion provided by Doane Grant Thornton LLP to the reader. This material may not be applicable to, or suitable for, specific circumstances or needs and may require consideration of other factors not described herein.
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