On March 22, 2022, Finance and Treasury Board Minister, Ernie Steeves, presented the 2022–2023 New Brunswick budget. Projecting a surplus of approximately $35 million, this year’s budget seeks to further develop the provincial economy while fostering stronger communities with significant investments allocated for health care, education, climate change initiatives, and measures to improve government services and support vulnerable populations.
The budget announcement included only a few significant tax changes, as summarized below
Property Tax Measures
To reduce the overall tax burden on residents and promote further residential construction activity, the government will introduce property tax rate reductions to be phased in over a three-year period, starting in the current year.
Once fully implemented, the provincial property tax rate reductions will be as follows:
- 50% for non-owner-occupied residential properties, such as apartment buildings and similar rental properties; and
- 15% for other residential properties, such as nursing homes and non-residential properties.
Initially proposed in the government’s 2020–2021 budget, but postponed because of COVID-19, these rate reductions are expected to provide relief to property owners and occupants that have been harshly affected by the pandemic.
Property tax bills for 2022 will reflect the first phase of the rate reductions and are to be sent out on April 1, 2022.
Carbon Tax Measure
This year’s budget confirms the province’s carbon tax will be increased from $40 to $50 per tonne of carbon dioxide equivalent emissions, effective April 1, 2022. This carbon tax increase is mandated under the federal carbon pricing requirements and will equate to 2.21 cents per litre of gasoline and 2.68 cents per litre of diesel.
Income Tax Measures
To help offset the carbon tax increase, the province announced that the basic personal income tax amount will be increased from $10,817 to $11,720 for the 2022 taxation year. In addition, the Low-Income Tax Reduction threshold will be raised from $18,268 to $19,177.
More Information
For information on new and extended government funding initiatives included in this year’s provincial budget, please navigate to Mentor Works News.
Further details on New Brunswick’s 2022 budget may be found on the province’s website at:
https://www2.gnb.ca/content/gnb/en/departments/finance/budget/2022-2023/budget.html
If you have any questions about how tax changes proposed in recent Canadian budgets might impact your organization, please do not hesitate to call the Ryan TaxDirect® line at 1.800.667.1600.