New Brunswick – Income Tax Brackets, Rates & Provincial Tax Credits

Did you know that New Brunswick is home to The Bay of Fundy, which has the world’s highest tides? In fact, tides here can reach 16 metres, taller than the letters on the Hollywood sign!

As with most provinces, New Brunswick uses a progressive tax structure, with 4 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 2023

How New Brunswick’s tax brackets work

Under the current tax on income method, tax for all provinces (except Quebec) and territories is calculated the same way as federal tax. Form NB428 is used to calculate this provincial or territorial tax, as well as non-refundable tax credits.

Your taxable income represents all income earned minus federal deductions like the Registered Retirement Savings Plan (RRSP) deduction and child-care expenses. For more information on taxable income, visit this link from TurboTax.

There’s an allowable amount of income that you can earn before you must start paying taxes. It’s called the “Basic Personal Amount” or “BPA.” For the 2024 tax year, the federal Basic Personal Amount (BPA) is $15,705, while the New Brunswick BPA amount is $13,044.

New Brunswick has a tax system similar to other Canadian provinces. Many of the provincial taxes and credits for residents of New Brunswick complement similar credits at the federal level, but there are some unique credits for residents of New Brunswick.

New Brunswick’s provincial tax credits

• Low-Income Tax Reduction: New Brunswick residents with low income may qualify for this non-refundable tax credit that’s used to reduce your provincial tax payable.
• Seniors’ Home Renovation Tax Credit: Seniors who are 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 their homes safer and more accessible. Residents who qualify can claim up to $10,000 worth of eligible home improvements on their tax return and get 10% 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.
• Non-refundable personal income tax credits for eligible volunteer firefighters and search and rescue volunteers. This credit will be effective for the 2024 taxation year and aims to support recruitment and retention, as well as recognize the contribution of these valued first responders.
• A complete list of non-refundable tax credits and other credits or deductions for New Brunswick residents can be found at this CRA link: New Brunswick tax and credits

For federal rates, review the following TurboTax article: Canada’s federal personal income tax brackets and tax rates.