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NB Dividend Tax Credit

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Atlantic Provinces  -> New Brunswick -> Dividend tax credit

New Brunswick Dividend Tax Credit

New Brunswick and other provinces provide a personal non-refundable dividend tax credit for income from Canadian dividends.

NB Eligible Dividends

NB Income Tax Act, 2000 s. 35(b)(ii)

Dividend tax credits for eligible dividends for 2016 and 2017 were revised by Bill 32, which received Royal Assent July 8, 2016.

Year 2009 2010 2011

2012 -
2015

2016 2017 &
later
Gross-up % 45% 44% 41% 38% 38% 38%
enhanced dividend tax credit as a % of
grossed-up dividends 12% 12% 12% 12% 13.5% 14%
actual dividends 17.40% 17.28% 16.92% 16.56% 18.63% 19.32%

NB Non-Eligible Dividends

NB Income Tax Act, 2000 s. 35(e)(i)

For non-eligible, or small business dividends, the New Brunswick dividend tax credit is defined as a percentage of the taxable dividend.

The Federal 2017 Fall Economic Statement announced that the gross-up rate for non-eligible dividends (also know as regular dividends, or small business dividends) would be reduced to 16% for 2018, and to 15% for 2019 and later years.  New Brunswick subsequently tabled Bill 23, An Act to Amend the New Brunswick Income Tax Act, on November 14, 2017 to revise the dividend tax credit rate for non-eligible dividends, as reflected in the table below.

The current and past New Brunswick rates for non-eligible dividends are shown in the following table.

     NB Dividend Tax Credit Rate for Non-Eligible Dividends

Year Gross-up
Rate
%of Federal
Gross-up
% of Grossed-up
Dividend
% of Actual
Dividend
2019+ 15% 21.08% 2.750% 3.16%
2018 16% 20.68% 2.853% 3.31%
2017 17% 22.33% 3.245% 3.80%
2016 17% 24.95% 3.625% 4.24%
2015 18% 26.2% 4.0% 4.72%
2014 18% 34.7% 5.3% 6.25%
2013 & earlier 25% 26.5% 5.3% 6.63%

The New Brunswick table of marginal tax rates show the marginal tax rates for eligible and non-eligible dividends and other income, including the change to the 2018 dividend tax credit.

Revised: November 16, 2017

 

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