Did you know that one-third of the world’s French fries come from New Brunswick? The McCain brothers set up their first plant there in 1957 and their multi-billion-dollar company is still going strong!
New Brunswick has a tax system similar to other Canadian provinces. Many of the provincial taxes and credits for residents of New Brunswick compliment similar credits at the federal level, but there are some unique credits for residents of New Brunswick.
New Brunswick’s Progressive Tax Rate Structure
As with most provinces, New Brunswick uses a progressive tax structure, with five tax brackets. The tax brackets increase each year, based on inflation. Visit the government of New Brunswick’s Personal Income Tax page for current and previous year’s tax bracket rates.
New Brunswick’s Tax Brackets for Tax Year 2020
Taxable Annual Income
|9.68%||on the first $43,401||$43,401|
|14.82%||on the next $43,402||over $43,401 up to $86,803|
|16.52%||on the next $54,319||over $86,803 up to $141,122|
|17.84%||on the next $19,654||over $141,122 up to $160,776|
|20.3%||on the portion over $160,776||over $160,776|
New Brunswick Credits
- A complete list of Non-Refundable Tax Credits and other credits or deductions for New Brunswick residents can be found in this CRA link: New Brunswick Tax and Credits
- The New Brunswick Low-Income Tax Reduction: NB Residents with low-income may qualify for this non-refundable tax credit that is used to reduce your provincial tax payable. Learn more on how to claim this provincial credit on your taxes in this CRA link.
- New Brunswick Seniors’ Home Renovation Tax Credit: Seniors 65 years or older in New Brunswick, (or their family members) could qualify for a refundable tax credit to help with the cost of making your home safer and more accessible. Residents that qualify can claim up to $10,000 worth of eligible home improvements on their tax return and get 10 percent of the eligible expenses claimed. (For example, if you spend and then claim $10,000 worth of eligible expenses, you could get $1,000 back). Learn more on how to claim this provincial credit on your taxes in this CRA link.
There is an allowable amount of income that you can earn before you must start paying taxes. That is called the “basic personal” or “personal amount.” For the 2020 tax year, the Federal Basic Personal Amount (BPA) is $13,229, while the New Brunswick amount is $10,459.
This TurboTax article provides more information on the federal tax rates, as well as links to other provinces and tax calculators: An Overview of Canada’s Tax Brackets.
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