New Brunswick Income Tax Rates and Brackets

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by Enoch Omololu

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Similar to other provinces and territories in Canada, New Brunswick has a progressive tax system and tax rate that increases as your taxable income increases.

The largest tax rate in the province is 9.68% and the top rate is 20.30%.

When combined with federal taxes, New Brunswickers pay a tax rate ranging from 15% to 53.30% on ordinary income.

Tax brackets in New Brunswick are indexed to the Federal inflation rate. The rate used for indexing the 2020 tax brackets is 1.9% (or a 1.019 indexation factor).

The minimum wage in New Brunswick is $11.70 per hour.

You can learn more about the tax brackets in other provinces using the links below:

New Brunswick Tax Rates and Tax Brackets

New Brunswick Tax Brackets 2020

The provincial personal income tax rates and brackets in the 2020 tax year are:

2020 Taxable IncomeNew Brunswick Tax
Up to $43,4019.68%
$43,401.01 to $86,80314.82%
$86,803.01 to $141,12216.52%
$141,122.01 to $160,77617.84%
$160,776.01 and over20.30%

In order to calculate your taxes, you pay:

  • 9.68% on the first $43,401 of taxable income, plus
  • 14.82% on the next $43,402 (i.e. on the portion of taxable income over $43,401 up to $86,803), plus
  • 16.52% on the next $54,319 (i.e. on the portion of taxable income over $86,803 up to %141,122), plus
  • 17.84% on the next $19,654 (i.e. on the portion of taxable income over $141,122 up to $160,776), plus
  • 20.30% on income exceeding $160,776

New Brunswick’s basic personal amount in 2020 is $10,459. If your taxable income for the tax year is below this amount, you will not owe provincial income tax.

New Brunswick Income Tax Calculation

Your provincial marginal tax rate is the amount of tax you pay on an additional dollar of income. It is different from your average tax rate.

Assuming your taxable income in 2020 is $90,000, your provincial marginal and average tax rates are as follows:

Tax BracketMarginal Tax RateTaxable IncomeTax Paid
$0 – $43,4019.68%$43,401$4,201.21
$43,401 – $86,80314.82%$43,402$6,432.18
$86,803 – $90,00016.52%$3,197$528.14
Total $90,000$11,161.53

Based on the table above, your provincial marginal tax rate is 16.52% and this is the rate you would pay on an extra dollar of ordinary income.

Your average tax rate is lower at 12.40%; calculated as $11,161.53 ÷ $90,000.

Related: Tax Return Software in Canada.

New Brunswick Marginal Tax Rates (Federal and Provincial)

The federal tax rates and brackets in 2020 are:

Taxable IncomeFederal Tax Rate
Up to $48,53515%
$48,535.01 to $97,06920.50%
$97,069.01 to $150,47326%
$150,473.01 to $214,36829%
$214,369.01 and over33%

When provincial and federal taxes are combined, your tax rates for different sources of income are:

Taxable IncomeOrdinary IncomeCapital GainsEligible Canadian DividendsIneligible Canadian Dividends
Up to $43,40124.68%12.34%-5.99%14.84%
$43,402 to $48,53529.82%14.91%1.10%20.75%
$48,536 to $86,80335.32%17.66%8.69%27.08%
$86,804 to $97,06937.02%18.51%11.04%29.04%
$97,070 to $141,12242.52%21.26%18.63%35.36%
$141,123 to $150,47343.84%21.92%20.45%36.88%
$150,474 to $160,77647.06%23.53%24.89%40.58%
$160,777 to $214,36849.52%24.76%28.28%43.40%
$214,369 and over53.30%26.65%33.50%47.76%

The top combined federal and provincial tax rates payable in New Brunswick are:

  • Ordinary income: 53.30%
  • Capital gains: 26.65%
  • Eligible Canadian dividends: 33.50%
  • Ineligible Canadian dividends: 47.76%

Ordinary income includes income earned as wages, commissions, rent, royalties, pensions, and income from bonds and savings accounts.

Capital gains are taxed differently and only 50% of capital gain is included in your taxable income.

Dividends are categorized as eligible and ineligible dividends.

Eligible dividends enjoy preferential tax treatment and are grossed up by 38%. You can also claim a dividend tax credit.

The gross-up rate and dividend tax credit is lower for ineligible dividends.

Related: How To Invest in Canada.

New Brunswick Tax Credits and Deductions

Tax credits reduce the taxes you owe and may result in a refund. On the federal level, you may be eligible for the following tax credits:

  • Basic personal amount
  • Age amount
  • Spouse or common-law partner amount
  • Canada caregiver amount
  • CPP contributions
  • Employment insurance premiums
  • Homebuyers’ amount
  • Pension income amount
  • Disability amount
  • Medical expenses
  • Donations and gifts

You can find a complete list of tax credits here.

Tax deductions lower your taxable income and include your RRSP contributions.

Tax credits specific to New Brunswick (NB) include:

  • NB Low-Income Tax Reduction
  • NB Political Contribution Tax Credit
  • NB Small Business Investor Tax Credit
  • NB Seniors’ Home Renovation Tax Credit
  • NB Labour-Sponsored Venture Capital Fund Tax Credit

New Brunswick Sales Tax

New Brunswick uses the Harmonized Sale Tax regime, similar to Nova Scotia, Ontario, Newfoundland and Labrador, and Prince Edward Island.

The HST rate in New Brunswick is 15%. The provincial portion is 10% and the federal portion is 5%.

HST rebates are available on printed books, audio recordings, scriptures, some vehicles, and research and development by a university.

Related: Tax Filing Deadline in Canada.

How To File Your Tax Return in New Brunswick

You can easily file your taxes online using a CRA-approve tax software.

These tax preparation programs use the NETFILE system to securely transmit your data to the CRA. Examples include SimpleTax and TurboTax.

For the 2020 tax year, the deadline to file your taxes is expected to be April 30, 2021. That said, the filing date may be extended due to COVID-19.

Self-employed individuals and sole proprietors get an extension until June 15.

File your taxes for free or get a 15% discount.

Frequently Asked Questions

What is considered low income in New Brunswick?

The New Brunswick Low-Income Tax Reduction tax credit applies in full when your income is $17,455 or lower in 2020 for a single person.

What is the income tax rate in New Brunswick?

The personal income tax rate for New Brunswickers is from 9.68% to 20.3%.

What is the minimum wage in New Brunswick?

The minimum wage in the province is $11.70 per hour. It is updated on April 1st of each year.

Have questions about the tax rates and brackets in New Brunswick? Leave them in the comments.

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Author

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Enoch Omololu

Enoch Omololu is a personal finance expert and a veterinarian. He has a master’s degree in Finance and Investment Management from the University of Aberdeen Business School (Scotland) and has completed several courses and certificates in finance, including the Canadian Securities Course. He also has an MSc. in Agricultural Economics from the University of Manitoba and a Doctor of Veterinary Medicine degree from the University of Ibadan. Enoch has a passion for helping others win with their personal finances and has been writing about money matters for over a decade. His writing has been featured or quoted in The Globe and Mail, Winnipeg Free Press, Wealthsimple, Financial Post, Toronto Star, Credit Canada, MSN Money, National Post, CIBC, and many other personal finance publications.

His top investment tools include Wealthsimple and Questrade. He earns cash back on purchases using KOHO, monitors his credit score for free using Borrowell, and earns interest on savings through EQ Bank.

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