New Brunswick - Provincial corporation tax

Important notice
Changes have been announced to the New Brunswick income tax rates. See What's new for corporations.

Lower rate

The lower rate of New Brunswick income tax is 5%.

The income eligible for the lower rate is determined using the New Brunswick business limit of $500,000, effective January 1, 2009. Before this date, the business limit was $400,000.

Higher rate

The higher rate of New Brunswick income tax is 11% effective July 1, 2010 (it was previously 12%). Effective July 1, 2011, it will be 10%.

This rate applies to all income not eligible for the lower rates.

The tax is prorated based on the number of days in the year when the tax year straddles these dates.

For more information, see Dual tax rates.

Reporting the tax

To help you calculate the New Brunswick tax before the application of credits, you can use Schedule 366, New Brunswick Corporation Tax Calculation. You do not have to file it with the return. See the schedule for more details.

On line 225 of Schedule 5, Tax Calculation Supplementary - Corporations, enter the amount of tax calculated.

See also New Brunswick tax on large corporations.

Claiming the credits

New Brunswick offers different tax credits. Details of each credit can be found in the following pages and their associated schedules:

• Political contribution tax credit
• Foreign tax credit
• Non-refundable research and development tax credit
• Refundable research and development tax credit
• Film tax credit

Forms and publications

• Schedule 366, New Brunswick Corporation Tax Calculation
• Schedule 5, Tax Calculation Supplementary - Corporations

Government partners

• New Brunswick (provincial site)