New Brunswick uses a progressive provincial income tax system with four brackets. Combined with federal tax, New Brunswick residents face marginal rates that range from about 24.40% on the lowest incomes to 52.50% at the top. Knowing your bracket makes it easier to plan RRSP contributions, estimate your refund, and compare your tax burden to other Atlantic provinces.
For a quick look at your take-home pay, check the Canada salary after tax calculators for common salary amounts.
New Brunswick 2025 provincial tax brackets
These are the New Brunswick provincial income tax rates for the 2025 tax year. Bracket thresholds are indexed annually for inflation:
| New Brunswick Provincial Tax Bracket | Tax Rate |
|---|---|
| First $51,306 | 9.40% |
| Over $51,306 up to $102,614 | 14.00% |
| Over $102,614 up to $190,060 | 16.00% |
| Over $190,060 | 19.50% |
New Brunswick simplified its tax structure in recent years, reducing the number of brackets from five to four and lowering rates, particularly for middle-income earners. The 2025 thresholds reflect an indexation increase from the 2024 amounts.
New Brunswick 2024 provincial tax brackets
These are the NB provincial brackets that applied for the 2024 tax year:
| New Brunswick Provincial Tax Bracket | Tax Rate |
|---|---|
| First $49,958 | 9.40% |
| Over $49,958 up to $99,916 | 14.00% |
| Over $99,916 up to $185,064 | 16.00% |
| Over $185,064 | 19.50% |
The key change between 2024 and 2025 is the indexation of all four bracket thresholds. For example, the first bracket moved from $49,958 to $51,306 allowing more income to be taxed at the lowest 9.40% rate.
Federal tax brackets 2025
Federal income tax brackets apply to all New Brunswick residents in addition to the provincial rates:
| Federal Tax Bracket | Tax Rate |
|---|---|
| $57,375 or less | 15.00% |
| $57,375 to $114,750 | 20.50% |
| $114,750 to $177,882 | 26.00% |
| $177,882 to $253,414 | 29.00% |
| More than $253,414 | 33.00% |
Federal tax brackets 2024
Reference brackets for filing your 2024 return:
| Federal Tax Bracket | Tax Rate |
|---|---|
| $55,867 or less | 15.00% |
| $55,867 to $111,733 | 20.50% |
| $111,733 to $173,205 | 26.00% |
| $173,205 to $246,752 | 29.00% |
| More than $246,752 | 33.00% |
Combined New Brunswick and federal marginal tax rates 2025
Here are the combined marginal rates when you add New Brunswick provincial tax to federal tax for 2025:
| Taxable Income Range | Combined Marginal Rate |
|---|---|
| Up to $51,306 | 24.40% |
| $51,306 to $57,375 | 29.00% |
| $57,375 to $102,614 | 34.50% |
| $102,614 to $114,750 | 36.50% |
| $114,750 to $177,882 | 42.00% |
| $177,882 to $190,060 | 45.00% |
| $190,060 to $253,414 | 48.50% |
| Over $253,414 | 52.50% |
Understanding these combined rates is essential when evaluating job offers, negotiating raises, or deciding how much to contribute to an RRSP before year-end.
How to calculate your New Brunswick income tax
Here is an example for someone earning $80,000 in New Brunswick for 2025:
Provincial tax:
- 9.40% on the first $51,306 = $4,822.76
- 14.00% on income from $51,306 to $80,000 ($28,694) = $4,017.16
- Total NB provincial tax = $8,839.92
Federal tax:
- 15% on the first $57,375 = $8,606.25
- 20.5% on income from $57,375 to $80,000 ($22,625) = $4,638.13
- Total federal tax = $13,244.38
Combined tax on $80,000 ≈ $22,084 before applying credits such as the basic personal amount.
The average income in New Brunswick is $44,300 which means most New Brunswick earners fall within the first combined bracket at 24.40%.
New Brunswick tax credits and deductions
Key credits that can reduce your NB tax bill include:
- Basic personal amount: The NB basic personal amount for 2025 is approximately $13,044 and the federal amount is $16,129. Income up to these thresholds is effectively tax-free.
- NB low-income tax reduction: Provides additional relief for earners below a certain threshold, reducing or eliminating provincial tax for the lowest incomes.
- RRSP contributions: Deductible from taxable income, which is especially valuable at higher marginal rates. See the RRSP guide.
- TFSA: All investment income and withdrawals are tax-free.
- New Brunswick Seniors’ Home Renovation Tax Credit: A refundable credit for qualifying home renovation expenses for seniors.
For capital gains on property or investments in New Brunswick, use the NB capital gains tax calculator to estimate your tax under the current inclusion rates.
How New Brunswick compares to other provinces
New Brunswick’s top combined rate of 52.50% is competitive within Atlantic Canada. Nova Scotia’s top rate is approximately 54%, PEI is about 51.75%, and Newfoundland reaches 54.8%. New Brunswick’s 2023 rate reductions made it more attractive for higher earners compared to its Atlantic neighbours.
The cost of living in Canada by province shows that New Brunswick remains one of the more affordable provinces, which combined with its moderate tax rates makes it increasingly popular for remote workers and retirees.
Frequently asked questions
What are the New Brunswick tax brackets for 2025?
New Brunswick has four provincial tax brackets for 2025: 9.40% on the first $51,306, 14.00% from $51,306 to $102,614, 16.00% from $102,614 to $190,060, and 19.50% on income over $190,060.
What is the top marginal tax rate in New Brunswick?
The top combined federal and New Brunswick marginal tax rate for 2025 is approximately 52.50% on taxable income over $253,414.
Did New Brunswick tax rates change for 2025?
The tax rates themselves stayed the same but the bracket thresholds were indexed upward for inflation. This means slightly more of your income is taxed at each lower rate compared to 2024.
How does New Brunswick tax compare to Nova Scotia?
New Brunswick’s top combined rate of 52.50% is lower than Nova Scotia’s top rate of approximately 54%. NB also has fewer brackets (four vs. five) and generally lower rates at middle income levels, making it slightly more tax-friendly overall.
When do the 2025 New Brunswick tax brackets apply?
The 2025 brackets apply to income earned from January 1 to December 31, 2025. You will use them when filing your return in early 2026.
Related guides
- NB capital gains tax calculator
- NB sales tax calculator
- NB hourly to salary calculator
- Average income in New Brunswick
- NB land transfer tax calculator
- Canada income percentile calculator
