Amendments to New Brunswick’s Income Tax Act aim to help residents with the rising cost of living.
The province says the basic personal amount one can claim is increasing by $903 to $11,720 as of the 2022 tax year. In addition, the low-income tax reduction threshold is rising by $909 to $19,177.
Finance and Treasury Board Minister Ernie Steeves says the changes will provide about $40 million in personal tax relief, benefiting around 400,000 taxpayers.
“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 Steeves.
All residents can claim the basic personal amount, while the low-income tax reduction will offset the New Brunswick tax payable for those with incomes that do not exceed the threshold.
The province says increasing the low-income threshold ensures single tax filers with incomes up to $19,177 would not have to pay provincial personal income tax for 2022.
Officials say the changes are part of its efforts to redistribute carbon tax revenue.