Personal income tax reduction introduced10 May 2022
FREDERICTON (GNB) – Legislative amendments to the New Brunswick Income Tax Act have been introduced to help residents with the rising cost of living. The changes are part of the government’s efforts to redistribute carbon tax revenue.
Through these changes, the non-refundable tax credit known as the basic personal amount would increase to $11,720 from $10,817, and the low-income tax reduction threshold would increase to $19,177 from $18,268. These changes would apply to the 2022 taxation year.
“We have heard from individuals and the business community that there is a need to address the high tax burden in New Brunswick and the cost pressures they face,” said Finance and Treasury Board Minister Ernie Steeves. “These changes will provide an estimated $40 million in personal income tax relief for 2022, benefitting approximately 400,000 taxpayers.”
The basic personal amount can be claimed by all individuals.
The low-income tax reduction is designed to offset the New Brunswick tax payable for tax filers with incomes up to the tax-free threshold and reduce personal income tax for other eligible low-income tax filers. Increasing the low-income tax reduction threshold would ensure that single tax filers with incomes up to $19,177 would not have to pay provincial personal income tax for 2022.
These measures reflect the government’s balanced approach of protecting consumers, providing broad-based tax relief, and investing in climate initiatives, said Steeves.