Changes to New Brunswick income tax that may affect employees pay

July 19, 2021 - Defence Stories

The Government of New Brunswick has announced changes to its personal income tax rates, retroactive to January 1, 2021. The changes reduce the provincial personal income tax rate on the first tax bracket from 9.68% to 9.4%.

Because the change is retroactive to January 1, a prorated rate of 9.12% is effective July 1, 2021. Changes have been applied in Phoenix as of the first pay of July 2021 (payment date on July 7, 2021), for affected employees. As such, you may notice a change to your pay amount.

Whenever taxation changes happen, you may want to complete new tax credits return forms (e.g., TD1, TD1NB) in the event that you need to modify your current personal tax amounts and credits.

The Federal, Provincial and Territorial Payroll Deductions job aid has been revised to reflect these changes. See how public service pay works and to find out more about income tax and your pay. Go to the CRA website for a complete list of TD1 personal tax credits returns forms.