All the Numbers

Income tax in New Brunswick

From the All the Numbers wiki · Tax

A New Brunswick resident's provincial tax is worked out on the NB428, attached to the federal return.

The rules (2026)

Brackets: 9.4% up to $52,333; 14% to $104,666; 16% to $193,861; 19.5% above.[1] Credits are taken at 9.4%.

  • Basic personal amount: $13,664.[2]
  • Spouse or eligible dependant: $10,709 while the dependant's net income is $1,072 or less, then less each dollar above it, nil at $11,781.[3][4][5]
  • Age amount: $6,158 at 65 or over, less 15% of net income above $45,844.[6]
  • Pension amount: $1,000.[7] CPP and EI are credited as federally.[8]
  • Dividends: 14% (eligible) and 2.75% (other) of the grossed-up dividend.[9][10]
  • Minimum tax: 57% of the federal additional tax.[11] Foreign tax is credited on the T2036.[12]

There is no surtax and no health premium.

The low-income tax reduction

$818 for the person, and $818 more for a spouse or, without one, an eligible dependant, less 3% of family income over $22,358.[13] The statute sets the amount as the lowest rate on the gap between an indexed figure and the basic amount; the 2026 return is not published yet, so the plan works the 2026 figures out from 2025's. A couple claims it once. The plan gives it to the spouse with the higher income, and does not pass on a part that spouse cannot use.[14]

After 2026

New Brunswick indexes its brackets, credit amounts and the low-income reduction every year by the federal price index. The pension amount is fixed in the statute.[15] The plan treats it like Ontario's two fixed thresholds: it grows with the plan's rate by default, and stays at its dollars if the plan is set to the law as written. See tax brackets after 2026.

What it does not do

The Low-Income Seniors' Benefit (applied for) and the seniors' home renovation credit are not modelled. See also New Brunswick benefits.

See also

  • New Brunswick benefits · New Brunswick pays a child tax benefit, a working income supplement and a school supplement with the CCB to lower-income families, and an HST credit every quarter.
  • Tax brackets after 2026 are projected, not published · Every year after 2026 is taxed with the 2026 brackets, personal amounts, credits and CPP/EI ceilings grown at the plan's inflation rate. That is how CRA indexes them, but the real figures are announced each fall and will differ.

References

  1. ↑CRA T4127 (January 2026), Table 8.1 New Brunswick: 9.4% to $52,333; 14% to $104,666; 16% to $193,861; 19.5% above · New Brunswick personal income tax brackets and rates · See the source · effective 2026-01-01
  2. ↑CRA TD1NB 2026, line 1: "13,664" · New Brunswick basic personal amount · $13,664 · effective 2026-01-01
  3. ↑CRA TD1NB 2026, lines 6–7: "Enter $10,709 if … net income of $1,072 or less … a partial amount if … between $1,072 and $11,781" · New Brunswick spouse or eligible dependant amount, in full while the dependant's income is at or below the threshold · $10,709 · effective 2026-01-01
  4. ↑CRA TD1NB 2026, lines 6–7: "$1,072 or less" · New Brunswick spouse or eligible dependant amount: reduced dollar for dollar by the dependant's income above this · $1,072 · effective 2026-01-01
  5. ↑CRA TD1NB 2026, lines 6–7: "between $1,072 and $11,781" · New Brunswick spouse or eligible dependant amount: nil at this dependant income · $11,781 · effective 2026-01-01
  6. ↑CRA TD1NB 2026, line 2: "net income from all sources will be $45,844 or less, enter $6,158 … between $45,844 and $86,898" (6,158 / 41,054 = 15%) · New Brunswick age amount (65 or older at year end), less 15% of net income over the threshold · See the source · effective 2026-01-01
  7. ↑New Brunswick Income Tax Act s.24(1): "B is the lesser of (a) $1000, and (b) the amount determined … for paragraph (b) of variable B in the formula in subsection 118(3) of the Federal Act"; s.24 is not a "relevant provision" of s.16.1(1) · New Brunswick pension income amount, fixed in the statute · $1,000 · effective 2004-01-01
  8. ↑New Brunswick Income Tax Act s.32 (credit for EI premium and CPP contribution) · NB428 carries base CPP contributions and EI premiums as credits at the lowest New Brunswick rate · effective 2026-01-01
  9. ↑New Brunswick Income Tax Act s.35(i)(ii): "for the 2019 taxation year and subsequent taxation years … the fraction that yields a New Brunswick dividend tax credit rate of 14%" · New Brunswick dividend credit on eligible dividends, as a share of the grossed-up dividend · 14% · effective 2019-01-01
  10. ↑New Brunswick Income Tax Act s.35(i)(i): "for the 2019 taxation year and subsequent taxation years … the fraction that yields a New Brunswick dividend tax credit rate of 2.75%" · New Brunswick dividend credit on other than eligible dividends, as a share of the grossed-up dividend · 2.75% · effective 2019-01-01
  11. ↑New Brunswick Income Tax Act s.15: "The specific percentage is … (b) for any subsequent taxation year, 57%"; s.46: "A × B where A is the specific percentage for the year; and B is the amount … under subsection 120.2(3) of the Federal Act" · New Brunswick minimum tax: this share of the federal additional tax · 57% · effective 2001-01-01
  12. ↑New Brunswick Income Tax Act s.49(1) (foreign tax deduction) · New Brunswick foreign tax credit (T2036): foreign non-business tax beyond the federal credit, up to the foreign share of New Brunswick tax · effective 2026-01-01
  13. ↑New Brunswick Income Tax Act s.49.1(2): "(a) the amount, rounded up to the next dollar, determined by the formula A × ($19,177 – B) where A is the appropriate percentage … and B is the amount prescribed for B in section 19, (b) the amount determined under paragraph (a) for a person who is the qualified relation … (c) … [an eligible dependant without one] exceeds (d) 4% of the amount, if any, by which (i) the eligible individual’s adjusted income … exceeds (ii) $19,177"; s.49.1(2.01): "the reference to “4%” … shall be read as a reference to “3%”"; NB428 2025: $802 and $21,920 · New Brunswick low-income tax reduction: an amount for the individual, for a spouse (or, without one, an eligible dependant), less a rate of family income over a threshold; one claim a couple · See the source · effective 2026-01-01
  14. ↑Our convention under NB ITA s.49.1(3) ("only one of those individuals may apply"): the higher-income spouse is the likelier to have the tax to absorb it (ties: the earlier plan person); the spouse's use of the unused part (s.49.1(4)) is not modelled · In a couple, the spouse with the higher net income claims the New Brunswick low-income tax reduction · effective 2026-10-03
  15. ↑New Brunswick Income Tax Act s.16.1(1): "“relevant provision” means section 14, 17, 18, 19, 20, 21, 23, 26, 27 or 49.1"; s.16.1(2): each amount adjusted by the Consumer Price Index for Canada for the 12 months ended September 30 · New Brunswick indexes its brackets and credit amounts, but not the pension amount · effective 2001-01-01