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 2021
| Tax Rate | Tax Bracket | Taxable Annual Income |
| 9.40% | on the first $43,835 | $43,835 |
| 14.82% | on the next $43,835 | over $43,835 up to $87,671 |
| 16.52% | on the next $54,863 | over $87,671 up to $142,534 |
| 17.84% | on the next $19,849 | over $142,534 up to $162,383 |
| 20.3% | on the portion over $162,383 | over $162,383 |
For 2020 tax rates, review this link from the Canadian Government.
How New Brunswick’s Tax Brackets Work
Under the current tax on income method, tax for all provinces (except Québec) 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 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. That is called the “basic personal” or “personal amount.” For the 2021 tax year, the Federal Basic Personal Amount (BPA) is $13,808, while the New Brunswick amount is $10,564.
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 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.
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
