Are you wondering how much income tax you need to pay in New Brunswick? If so, you are not alone. Income taxes can be confusing and intimidating, especially if it’s your first time filing. Fortunately, understanding the basics of income tax in New Brunswick is easy. Let’s take a closer look at how much income tax you need to pay if you live in the province.
Income Tax Rates in New Brunswick
The amount of income tax you need to pay depends on your annual taxable income. The current rates for 2021 are as follows:
• Up to $39,890 – 9.68%
• From $39,891 to $79,781 – 14.82%
• From $79,782 to $135,054 – 16.52%
• From $135,055 to $150,000 – 17.84%
• Over $150,000 – 20.3%
In addition to these rates, anyone who lives or works in New Brunswick must also pay a provincial sales tax (PST) of 10%. On top of this PST rate is an additional 5% Harmonized Sales Tax (HST) that applies only when purchasing certain items such as cars or real estate transactions over a certain amount.
Tax Credits & Deductions
New Brunswickers may be eligible for various tax credits and deductions depending on their particular situation. These credits and deductions can help reduce their overall taxable income and resulting tax bill. Some common examples include the Disability Tax Credit (for individuals with disabilities), the Age Amount (for seniors aged 65 or older), and the Child Care Expense Deduction (for those who have children under the age 16). It’s important to note that some of these credits and deductions are refundable while others are non-refundable; this means that some taxpayers may receive a refund from the Canada Revenue Agency even if no taxes were initially paid!
Navigating taxes can be tricky but understanding how much income tax you owe in New Brunswick doesn’t have to be difficult! By following the rates outlined above and taking advantage of any applicable credits or deductions that apply to your particular situation, you should be able to easily determine how much money you will owe for your annual taxes this year. With this knowledge at your disposal, filing your taxes becomes a whole lot easier—and less intimidating!