The New Brunswick government is cutting the small business income tax rate to 3% as of April 1.
It is the third cut to the rate since January, 2015, when the rate was 4.5%.
Premier Brian Gallant says small businesses are crucial to economic and job growth in the province.
He says by cutting taxes for small businesses, the government is helping them compete, invest and create jobs.
While three other provinces have a 3% small business income tax rate, only Manitoba, Saskatchewan and British Columbia are lower.