New Brunswick – Provincial corporation tax
The lower rate of New Brunswick income tax is 2.5% effective April 1, 2018. It was previously 3%.
To determine the income eligible for the lower rate, use the New Brunswick business limit of $500,000.
The New Brunswick business limit is not be subject to the federal passive income business limit reduction that applies to tax years starting after 2018. As such, eligible New Brunswick small businesses are eligible for the New Brunswick lower rate regardless of the amount of passive income they earned. See the details about the reduced business limit.
The higher rate of New Brunswick income tax is 14%.
The higher rate applies to all income not eligible for the lower rates.
If the rate changes during the tax year, you have to base your calculation on the number of days in the year that each rate is in effect.
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 your return. See the schedule for more details.
On line 225 of Schedule 5, Tax Calculation Supplementary – Corporations, enter the amount of tax calculated.
Claiming the credits
New Brunswick offers different tax credits. Details of each credit can be found in the following pages and their associated schedules:
Forms and publications
- New Brunswick (provincial site)
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