Taxes
Property Tax Rates / Corporate Tax & Incentives
Property Tax Rates (2010)The City of Fredericton has the lowest property tax rate of all New Brunswick cities.
| Non-Residential (Commercial) | | |
| *Inside City Rate 1.4261 1.5 = | 2.1392 | |
| Provincial Tax Rate 1.4573 x 1.5 = | 2.1859 | |
| Provincial Tax Rate (Assessment & Collection) | 0.0194 | |
|
SubTotal | $4.3445 | |
| Business Improvement Area (if applicable) | 0.20 | |
| | $4.5445 | |
| Residential | Inside | Outside |
| City Rate | $1.4261 | $1.0696 |
| Provincial Rate | 1.4573 | 1.4573 |
| Provincial Rate (assessment & collection) | 0.0194 | 0.0194 |
|
Sub-Total | 2.9028 | 2.5463 |
| Less Provincial Tax Credit | (1.4573) | (1.4573) |
|
Total Tax Bill | $1.4455 | $1.0890 |
|
Source: City of Fredericton Finance
For tax assessment or payment related tax inquires, please contact the Province of New Brunswick - Service NB at: www.snb.ca or 1-888-762-8600 | | |
Notes: *City receives the revenue. The 1.5 represents the business tax rate. The property tax rates apply to all properties (land and buildings) within City limits, per $100 of assessment. Non-owner occupied residential properties are taxed at the residential rate of $2.9028 plus 0.05 cents Residential Tenancy Administration Fee, for a total of $2.9528. The combined tax base assessment 2010 over 2009 was increased by 5.43%. The base used for 2010 to set the tax rate was $5,537,706,643, including Federal properties.
Non-residential tax rate: *The Province of New Brunswick levies a property tax on non-residential property within municipal boundaries. As you can see, a development in the downtown core pays a total rate of $4.5445. Of that total, the City collects $2.1392, or 47% of the total tax charged. The Province of New Brunswick collects the majority of tax in the form of the Provincial Tax Rate, i.e. $2.1859 + 0.00194 = $2.2053 per $100 of assessment. The BIA levy of 0.20 is a tax imposed upon the downtown businesses by themselves.
Corporate Tax Rates & IncentivesProvincial: (as of March 2010)
Provincial general corporate income tax rate is 12%, and small business rate is 5%. The income threshold up to which the provincial small business rate is applied is $500,000. For more info, http://www.gnb.ca/0162/tax/Corporate.htm
There are various tax credits available, such as:
- Dividend tax credit - The New Brunswick Dividend Tax Credit is a non-refundable personal income tax credit. http://www.gnb.ca/0024/tax/dividend.asp
- New Brunswick Labour Sponsored Venture Capital - The New Brunswick Labour Sponsored Venture Capital (LSVC) tax credit is a personal non-refundable income tax credit provided for purchases of approved shares in prescribed LSVC corporations. http://www.gnb.ca/0162/tax/labour_sponsored-e.asp
- Small Business Investor Tax Credit - The New Brunswick Small Business Investor Tax credit was enhanced by increasing the size of the allowable annual investment for the 30% credit from $80,000 to $250,000. As a result the maximum annual amount of tax credit available to an individual investor will increase from $24,000 to $75,000 http://www.gnb.ca/0162/tax/sbitc/smallbusiness.htm
- R&D Tax Credit - The New Brunswick R&D tax credit is 15% and is fully refundable, meaning that the credit benefits New Brunswick corporations even if the corporation does not have provincial taxes owing. The refund amount will be equal to the amount of the credit in excess of tax otherwise payable under the New Brunswick Income Tax Act. http://www.gnb.ca/0398/investment/Incentives/index-e.asp#tc
- Film tax credit - To encourage the training and hiring of New Brunswick film personnel, the Province provides a Film Tax Credit equal to a maximum of 40% of eligible salaries paid to NB residents. Wages in excess of 50% of the total costs of production are not eligible for consideration. The value of this credit may also be included as part of the calculation of a production company's equity in a production. http://app.infoaa.7700.gnb.ca/gnb/Pub/EServices/ListServiceDetails.asp?ServiceID1=16256&ReportType1=All
- Scientific Research and Experimental Development Program (SR&ED) - The SR&ED program is a federal tax incentive program for research and development in Canada that will lead to new, improved or technologically advanced products or processes. A Canadian-controlled private corporation can earn refundable investment tax credits of 35% up to the first $2 million of qualified expenditures for SR&ED carried out in Canada, and 20% on any excess amount. http://www.gnb.ca/0398/investment/incentives/TaxCredits/index-e.asp
- Provincial Sales Tax Rebate - New Brunswick has combined its provincial sales tax rate with the federal sales tax rate, resulting in the HST (harmonized sales tax). The entire 13% sales tax (or value-added tax (VAT)) on business inputs and purchases is a refundable tax credit for most businesses in New Brunswick
For additional provincial information including financial assistance for new businesses, please visit: http://www.gnb.ca/0398/investment/incentives/index-e.asp#tc and http://www.gnb.ca/0024/tax/index.asp
Federal:
- Federal Investment Tax Credit Program - Deducted from federal tax payable, this credit is 10% of net investment in equipment and buildings in manufacturing, processing, mining, oil and gas, logging, farming, and fishing. Investment Tax Credits which exceed federal tax payable can be carried back to reduce federal tax in the three previous years or carried forward up to ten years. This credit applies only in the Atlantic Provinces and Quebec's Gaspé region.
For additional federal information, please visit:
http://www.cra-arc.gc.ca/tx/bsnss/menu-eng.html
