New Brunswick’s personal income tax rates are as follows: (i) for taxable income from $0-$28,000 = 0%; (ii) for taxable income over $28,000 and up to $37,500 = 11.50%+$1.25 per $100; and (iii) for taxable income over $37,500 = 16.75%+$2.00 per $100.
New Brunswick’s corporate income tax rates are as follows: (i) for corporation with taxable income up to $50,000 = 0%; (ii) for corporation with taxable income over $50,000 and not exceeding $150,000 = 11.5%+$1.25 per $100; and (iii) for corporation with taxable income over $150,000 = 17.5%+$2.00 per $100.
Source: Canada Revenue Agency [http://www.cra-arc.gc.ca].
Canada Income Tax Basics
Canada has a federal income tax. All amounts of income are taxable whether they are paid to you as salary or wages, as dividends, interest, capital gains, rents or royalties. In addition, taxable fringe benefits are the costs you pay for things like medical care and dental care that were provided to you by your employer.
Generally speaking, the more income you receive in a year and the more expensive your home is compared to the median house price in Canada’s census metropolitan areas (CMA), then the more tax you’ll pay every year. There’s an exception: Your small business CPP contributions will be taxed annually at a fraction of your personal income tax rate.
Filing your taxes with Canada Revenue Agency (CRA) is the only way you’ll get a tax refund. If you don’t pay enough tax, you’ll owe more at the end of the year.
5 Tips for Finding an Accountant in New Brunswick
If you’re having trouble finding a New Brunswick accountant, here are five simple things you can do:
1. Ask your neighbors. People who know you will have a good idea of what they think of your current accountant and what they would recommend.
2. Check the Yellow Pages under “Accountant” and then go to the section for the city where you live, or the town where your business is located. You’ll be able to find local, independent accountants easily.
3. Consider whether you need a business accountant for your business or a personal accountant for your personal affairs. You may want to separate the two with different accountants so that the work done for one doesn’t affect you tax filing payments with CRA.
4. Ask your bank, investment advisor or stock broker if they know of an excellent accountant who could help you out. They must be respected in their field, so ask why they recommend someone.
5. If all else fails, visit CRA’s website at cra-arc.gc.ca/tax-returns and search for a local accountant from your area.