March 26, 2026
Tax Highlights from the 2026 New Brunswick Budget
Minister of Finance René Legacy tabled the 2026/27 New Brunswick provincial budget on March 17, 2026.
The budget projects a deficit of $1.394 billion for the upcoming 2026/27 fiscal year and an increase in net debt of $1.955 billion, bringing the total to $15.9 billion by the end of March 2027. The forecasted deficit for the nearly completed 2025/26 fiscal year now stands at $1.378 billion, compared to the initially projected deficit of $599 million.
The increased expenses are focused on the healthcare system, accounting for an additional $710 million compared to the previous year.
On the income tax front, there are no changes to personal or corporate income tax rates for 2026.
The following pages summarize the changes announced in the budget. Please note that these changes remain proposals until they are passed into law by the provincial government.
PERSONAL TAX MATTERS
Personal Income Tax Rates and Tax Brackets
There are no proposed changes to personal income tax rates. Tax brackets and other amounts have been indexed by 2% to account for inflation. The table below outlines New Brunswick’s tax rates and tax brackets for 2026.
| TAXABLE INCOME RANGE | 2026 TAX RATES |
|---|---|
| First $52,333 | 9.4% |
| Over $52,333 to $104,666 | 14.0% |
| Over $104,666 to $193,861 | 16.0% |
| Over $193,861 | 19.5% |
The table below outlines the 2026 combined federal and provincial highest marginal tax rates for various types of income.
| INCOME TYPE | 2026 COMBINED TAX RATES |
|---|---|
| Regular income | 52.50% |
| Capital gains | 26.25% |
| Eligible dividends | 32.40% |
| Non-eligible dividends | 46.83% |
CORPORATE TAX MATTERS
Corporate Income Tax Rates
There are no changes proposed to corporate income tax rates. The table below outlines New Brunswick’s tax rates and small business limit for 2026.
| CATEGORY | 2026 TAX RATES |
|---|---|
| General rate | 14.0% |
| Manufacturing and processing rate | 14.0% |
| Investment income rate | 14.0% |
| Small business rate | 2.5% |
| Small business limit | $500,000 |
The table below outlines the 2026 combined federal and provincial corporate income tax rates for various types of income earned by a Canadian Controlled Private Corporation (CCPC).
| INCOME TYPE | 2026 COMBINED TAX RATES |
|---|---|
| Small business income | 11.50% |
| Active income over $500,000 | 29.00% |
| Manufacturing and processing income | 29.00% |
| Investment income | 52.67% |
OTHER INITIATIVES
Highway toll on non‑New Brunswick vehicles in 2028
The province will introduce a toll on non-New Brunswick vehicles near Aulac starting in 2028.
NEXT STEPS
For tailored tax and legal advice on how these measures affect you or your business, your own tax lawyers and accountants are best positioned to advise on these proposals. Your financial advisor can also assess the impact of these proposals on your personal finances or business affairs and show you ways to take advantage of their benefits or ease their impact, align your investments accordingly, and help coordinate the right specialist for your circumstances.
About the Author
The Tax, Retirement and Estate Planning (TREP) team is a specialized group of experienced legal, accounting and planning professionals dedicated to providing the tax, retirement and estate planning insight and expertise that advisors need in order to better serve their clients. As your trusted partner in planning, our TREP team is committed to exploring important issues and commentary on these matters through articles, presentations and other means.
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