The province of New Brunswick has announced income and property tax cuts, aimed at attracting professionals from other provinces.
A series of new bills would see the income tax rate cut for most brackets, provincial property tax for non-owner-occupied housing reduced and property tax bills for newly-constructed apartments phased in.
Under legislation introduced Tuesday, personal income tax rates will be cut in four tax brackets, with the largest reduction on incomes between $142,534 and $162,383 per year.
That bracket is being eliminated, with incomes in that bracket becoming part of the third bracket, dropping their provincial rate from 17.84 per cent to 16 per cent — a reduction of 1.84 percentage points.
Premier Blaine Higgs says the changes are intended to attract people to the province and continue the record-breaking population boom of the last two years, by making the tax rates for earners on the higher end more competitive.
“Our goal is to be a desired location on tax structures, on cost structures,” he said.
“People are looking at our province so we are continually looking for ways to make it more attractive.”
“You cannot expect people to come and invest and work if their taxation levels are such that you’re not considered a desirable place,” he said.
Incomes from $43,835 to $87,671 will see a smaller reduction, for example, from 14.82 per cent to 14 per cent.
The other changes announced Tuesday are intended to spur housing construction.
One would see the 50-per cent reduction in provincial property tax paid on non-owner-occupied housing moved up from 2024 to next year. The other would phase in property tax payments for those building multi-unit housing over three years.
