2019 New Brunswick Marginal Tax Rates

How much you pay in income tax in the province of New Brunswick will depend on how much you make and how you make your money.  The most taxed earnings will be derived from labour, followed by capital gains or dividends depending on your marginal tax bracket.


Credit Card Nerd Math

Below we have two charts with the marginal tax rates, the amount of after tax earnings for every dollar earned ($1 - $1 x Tax Rate), the amount needed to take home a dollar ($1 ÷ After Tax Earnings), the tax rate on Canadian eligible dividends and the capital gains tax rate.



2019 Provincial Marginal Tax Rates in New Brunswick

Taxable Income

Tax Rate

$1 After Tax Earnings

Amount Needed to Net a $1

Dividend Tax Rate

Capital Gains Tax Rate

first $42,592

9.68%

$0.903

$1.107

-5.95%

4.84%

over $42,592 up to $85,184

14.82%

$0.852

$1.174

1.13%

7.41%

over $85,184 up to $138,491

16.52%

$0.835

$1.198

3.48%

8.26%

over $138,491 up to $157,778

17.84%

$0.822

$1.217

5.3%

8.92%

over $157,778

20.3%

$0.797

$1.255

8.69%

10.15%


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Basic Personal Amount: Your first $10,264 in earnings are exempt from provincial income taxes in New Brunswick for 2019.
Capital Gains: Taxable income derived from capital gains will be reduced by half, making an effective marginal tax rate on capital gains that is 50% of your current marginal tax rate.  For example, if you have $10,000 in capital gains, you would have $5,000 in taxable income from your capital gains.



2019 Combined Federal and Provincial Marginal Tax Rates in New Brunswick

Taxable Income

Tax Rate

$1 After Tax Earnings

Amount Needed to Net a $1

Dividend Tax Rate

Capital Gains Tax Rate

first $42,592

24.68%

$0.753

$1.328

-5.99%

12.34%

over $42,592 up to $47,630

29.82%

$0.702

$1.425

1.1%

15.41%

over $47,630 up to $85,184

35.32%

$0.647

$1.546

8.69%

17.66%

over $85,184 up to $95,259

37.02%

$0.63

$1.588

11.04%

18.51%

over $95,259 up to $138,491

42.52%

$0.575

$1.74

18.63%

21.26%

over $138,491 up to $147,667

43.84%

$0.562

$1.781

20.45%

21.92%

over $147,667 up to $157,778

46.84%

$0.532

$1.881

24.59%

23.42%

over $157,778 up to $210,371

49.3%

$0.507

$1.972

27.99%

24.65%

over $210,371

53.3%

$0.467

$2.141

33.51%

26.65%


Federal Personal Amount: Your first $12,069 in earnings are exempt from Federal taxes in 2019.


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Tax on Eligible Dividends in New Brunswick

Eligible Canadian dividends that you have received will be grossed up by 38%.  You will also be given a 14% provincial dividend credit as well as a 15.0198% federal dividend tax credit on your grossed up dividends.
    Someone that has taxable income that is less than $42,592 will have their dividends taxed at -5.95% at the provincial level and a -5.99% when combined with the federal dividend credit.
    Someone that been paid $1 in dividends in a non-registered account will have a net dividend tax of -$0.03 (($1 x 1.38 x 9.69%) - ($1 x $1.38 x 14%)) = $0.0319, which is a -5.95% tax rate.
    The combined federal and provincial tax on dividends received would be (($1 x 1.38 x 24.68%) - ($1.38 x 29.0198%)) = -$0.0599 at this bracket or a -5.99% tax rate.

How the math works;

  • first off your $1 in dividends will increase your taxable income by ($1 x 1.38) = $1.38
  • You will get a dividend tax credit of ($1.38 x 14%) = $0.1932
  • You will be taxed on your $1.38 at 9.68% and will have your taxes reduced by $0.1932
  • This works out to ($1.38 x 9.68% - $0.1932) = -$0.0595 in net taxes on your dividends
  • The effective tax rate would be -5.95%

For the other tax brackets, we will assume that you are getting paid $1 in dividends as well to keep the calculations simple.

  • At the second bracket the tax on dividends paid would be ($1.38 x 14.82% - $0.1932) ÷ $1 = 1.13%
  • At the third bracket the tax on dividends paid would be ($1.38 x 16.52% - $0.1932) ÷ $1 = 3.48%
  • At the fourth bracket the tax on dividends paid would be ($1.38 x 17.84% - $0.1932) ÷ $1 = 5.3%
  • At the top bracket the tax on dividends paid would be ($1.38 x 20.3% - $0.1932) ÷ $1 = 8.69%

New Brunswick Tax Rates: Provincial Tax Rates 2019
New Brunswick Personal Tax Credit 2019
Federal Tax Rates: Federal Tax Rates 2019
Federal Dividend Tax Credit: http://www.cra-arc.gc.ca/tx/ndvdls/tpcs/ncm-tx/rtrn/cmpltng/ddctns/lns409-485/425-eng.html