Planning your taxes in New Brunswick? Our comprehensive New Brunswick Income Tax Calculator helps you estimate your 2025 and 2026 tax liability accurately. Whether you are an employee, self-employed, or have investment income, this tool provides CRA-compliant calculations based on the latest federal and New Brunswick tax brackets. New Brunswick has a progressive tax system with rates ranging from 9.4 percent to 19.5 percent, making it competitive with other Atlantic provinces while funding essential public services.
Understanding your tax obligation is essential for effective financial planning. Our calculator follows the Canadian progressive marginal tax system, ensuring that each portion of your income is taxed at its appropriate rate, rather than applying a flat tax rate to your entire income. This approach aligns with the methodology used by the Canada Revenue Agency and professional tax preparation software like TurboTax.
New Brunswick Tax Rates 2025 & 2026
New Brunswick has a progressive provincial income tax system with four tax brackets. The rates start at 9.4 percent for lower incomes and increase to 19.5 percent for the highest income earners. The provincial government adjusts these brackets annually for inflation, providing some relief to taxpayers over time. Here are the current New Brunswick tax brackets:
2025 New Brunswick Provincial Tax Brackets
Taxable Income
Tax Rate
$0 – $51,306
9.4%
$51,306 – $102,614
14%
$102,614 – $190,060
16%
Over $190,060
19.5%
2026 New Brunswick Provincial Tax Brackets
Taxable Income
Tax Rate
$0 – $52,333
9.4%
$52,333 – $104,666
14%
$104,666 – $193,861
16%
Over $193,861
19.5%
Federal Tax Rates 2025 & 2026
The federal tax system applies to all Canadians regardless of province of residence. These rates are progressive, meaning higher income portions are taxed at higher rates. The federal government adjusts these brackets annually for inflation.
2025 Taxable Income
2025 Rate
2026 Taxable Income
2026 Rate
Up to $57,375
14.5%
Up to $58,523
14%
$57,375 – $114,750
20.5%
$58,523 – $117,045
20.5%
$114,750 – $177,882
26%
$117,045 – $181,440
26%
$177,882 – $253,414
29%
$181,440 – $258,482
29%
Over $253,414
33%
Over $258,482
33%
CPP & EI Contributions 2025-2026
Canada Pension Plan (CPP) and Employment Insurance (EI) premiums are mandatory deductions from your employment income. These contributions fund retirement benefits and employment insurance programs. Here are the current rates and maximums:
CPP Base (2025): 5.95% on earnings between $3,500 and $71,300. Maximum contribution: $4,034.10
CPP Base (2026): 5.95% on earnings between $3,500 and $74,600. Maximum contribution: $4,230.45
CPP2 (2025): 4% on income between $71,300 and $81,200. Maximum: $396
CPP2 (2026): 4% on income between $74,600 and $85,000. Maximum: $416
EI (2025): 1.64% on employment income up to $65,700. Maximum: $1,077.48
EI (2026): 1.63% on employment income up to $68,900. Maximum: $1,123.07
Note: Self-employed individuals are required to pay both the employee and employer portions of CPP contributions. This means self-employed persons pay double the standard CPP rate (11.9% for CPP base and 8% for CPP2). EI coverage for self-employed individuals is optional in New Brunswick.
New Brunswick Basic Personal Amount
The New Brunswick basic personal amount is the amount of income you can earn before paying any provincial income tax. For both 2025 and 2026, the New Brunswick basic personal amount is $12,458. This is lower than the federal basic personal amount, which is $16,129 for 2025 and $16,452 for 2026. However, New Brunswick offers various tax credits, including the Low-Income Tax Reduction and the Home Energy Assistance Program, which can significantly reduce your tax payable for eligible individuals and families.
How to Use This New Brunswick Tax Calculator
Using our calculator is simple and straightforward. Follow these steps to get an accurate estimate of your tax liability:
Select Your Tax Year: Choose between 2025 and 2026 to ensure you are using the correct tax brackets and rates.
Enter Your Employment Income: Include your salary, wages, bonuses, commissions, tips, and honoraria.
Add Self-Employment Income: Include net income from any business, trade, or professional activities.
Include Other Income: Enter rental income, EI benefits, OAS, CPP payments, and other government transfers.
Enter Deductions: Add your RRSP and FHSA contributions, which reduce your taxable income.
Report Investment Income: Include capital gains (only 50% taxable), eligible dividends (gross-up 38%), and ineligible dividends (gross-up 15%).
Enter Taxes Already Paid: Include federal tax withheld from your paycheque or installment payments made during the year.
The calculator then applies progressive marginal tax rates to determine your total tax liability, CPP and EI premiums, net after-tax income, average tax rate, marginal tax rate, and estimated refund or tax owing.
Why New Brunswick's Tax System Matters
New Brunswick's tax system is designed to balance competitiveness with the need to fund essential public services such as healthcare, education, and infrastructure. The province has a four-bracket progressive tax structure that provides a moderate tax burden for middle-income earners while ensuring higher-income individuals contribute a larger share.
One of the key features of New Brunswick's tax system is the Low-Income Tax Reduction, which can reduce or eliminate provincial tax for eligible low-income individuals and families. This program helps ensure that those with lower incomes are not burdened by provincial taxation. Additionally, New Brunswick offers the Home Energy Assistance Program, which provides financial assistance to help low-income households with home heating costs.
New Brunswick is also part of the harmonized sales tax (HST) system, with a combined rate of 15 percent. This simplifies the tax system for businesses and consumers, as both federal and provincial taxes are collected together. New Brunswick residents benefit from the federal-provincial harmonized approach to tax collection, with the Canada Revenue Agency administering both federal and provincial tax returns.
Why Use Our New Brunswick Tax Calculator
Our calculator is designed to provide accurate, CRA-compliant estimates. Key features include:
Progressive Marginal Tax System: Uses proper marginal tax calculations rather than flat tax approximations.
2025 & 2026 Tax Year Support: Easily switch between tax years to compare your tax liability.
Complete Income Sources: Handles employment, self-employment, investment, and dividend income.
RRSP & FHSA Deductions: Accurately reduces taxable income based on your contributions.
CPP & EI Calculations: Includes CPP2 for high earners and properly handles self-employed CPP contributions.
Dividend Tax Credits: Applies federal eligible (15.02%) and ineligible (9.03%) dividend tax credits.
Marginal & Average Tax Rates: Provides both rates to help you understand your tax burden.
Real-Time Calculations: Results update instantly as you enter or modify your inputs.
New Brunswick-Specific Credits: Accounts for New Brunswick basic personal amount and low-income tax reduction.
New Brunswick has a progressive income tax system with four tax brackets for 2025-2026. The first bracket, up to $51,306 in 2025 or $52,333 in 2026, is taxed at 9.4 percent. The second bracket is taxed at 14 percent, the third at 16 percent, and income over $190,060 in 2025 or $193,861 in 2026 is taxed at the top rate of 19.5 percent. Combined with federal rates, the total marginal tax rate can range from approximately 23.9 percent to 52.5 percent depending on your income level. New Brunswick also offers a Low-Income Tax Reduction that can eliminate provincial tax for eligible low-income residents.
New Brunswick's tax system is part of the harmonized sales tax (HST) system, with a combined rate of 15 percent. This means the provincial portion is collected together with the federal GST, simplifying administration. New Brunswick has a four-bracket progressive structure with a top rate of 19.5 percent, which is higher than Alberta's 15 percent but lower than Quebec's 25.75 percent. The province also offers unique credits such as the Low-Income Tax Reduction and the Home Energy Assistance Program. New Brunswick residents file a single combined tax return with the Canada Revenue Agency, unlike Quebec residents who file separate returns.
The New Brunswick basic personal amount for 2025 and 2026 is $12,458. This is the amount of income you can earn before paying any provincial income tax. This is lower than the federal basic personal amount of $16,129 for 2025 and $16,452 for 2026. However, New Brunswick offers a Low-Income Tax Reduction that can provide additional relief. The Low-Income Tax Reduction can eliminate provincial tax entirely for individuals with taxable income below certain thresholds, making the effective tax-free threshold higher for eligible residents.
RRSP contributions reduce your taxable income, which directly lowers both your federal and New Brunswick provincial taxes. For example, if you are in the 16 percent New Brunswick bracket and 20.5 percent federal bracket, a $5,000 RRSP contribution could save you approximately $1,825 in combined taxes. The savings are calculated at your marginal tax rate, making RRSP contributions especially beneficial for higher-income earners. The tax savings are realized when you file your tax return, and the contribution room is based on your previous year's earned income, up to the annual maximum.
The tax filing deadline for most New Brunswick residents is April 30 of the following year. If you or your spouse or common-law partner are self-employed, the deadline is June 15. However, any taxes owed must still be paid by April 30 to avoid interest charges. For the 2025 tax year, the filing deadline is April 30, 2026, for most individuals, and June 15, 2026, for self-employed individuals and their spouses. It is recommended to file electronically to receive your refund faster, typically within two weeks.
The Low-Income Tax Reduction is a New Brunswick-specific tax credit that reduces or eliminates provincial income tax for eligible low-income individuals and families. The reduction is based on your income and family size. For single individuals, the reduction can be up to $300, while for families, it can be up to $600. The reduction is phased out as income increases, meaning lower-income individuals and families may pay little or no provincial income tax. This program makes New Brunswick's tax system more progressive and helps ensure that those with lower incomes are not burdened by provincial taxation.
Your marginal tax rate is the rate you pay on your next dollar of income. In New Brunswick's progressive system, as your income increases, you pay a higher rate only on the portion that falls into a higher bracket. Your average tax rate is your total tax divided by your total income, which is always lower than your marginal rate. For example, someone earning $80,000 in New Brunswick might have a marginal rate of 36.5 percent, which is 20.5 percent federal plus 16 percent provincial, but an average rate of only about 18 to 20 percent. Understanding both rates helps with effective tax planning, especially when considering additional income or RRSP contributions.
⚠️This tool is for information purpose only. We do not guarantee any claim. It is made based on data publicaly available on official website of concerned department.
Last Updated: March 2026 | Official Determination Required
