Changes To Income Tax Act Will Help Ease Living Costs: Steeves

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.