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How to Estimate Your Take Home Pay in New Brunswick
Knowing how to accurately estimate your net take home pay in New Brunswick is essential to budgeting and financial planning. Your take home pay in Canada, also known as your net income or after-tax salary, is the total amount you receive in your paycheck after all taxes and deductions are removed from your gross earnings.
Several key factors determine your net take-home amount in New Brunswick, including federal and provincial income tax rates based on tax brackets, tax deductions and credits you qualify for, and mandatory contributions such as CPP and EI premiums.
Learning how to properly calculate your estimated 2024 take home pay gives you greater visibility into your actual spendable income so you can make informed financial decisions.
How to Calculate Take Home Pay in New Brunswick for 2024
Here is the formula to calculate your net take home pay in New Brunswick for 2024:
Gross annual income
- Federal income tax (based on 2024 tax brackets and rates)
- New Brunswick provincial income tax (based on 2024 tax brackets and rates)
- 2024 CPP contributions
- 2024 EI premiums
- Other deductions like health insurance
- = Net take home pay for 2024
Now, let’s look at how to determine each component that goes into this take home pay in New Brunswick calculation.
Gross Income
Your gross income includes all taxable income you earn in a year from your job, self-employment, investments, rental properties, and other taxable sources. This is the starting figure you will use to estimate your net take home pay.
Federal and Provincial Income Tax
Both the federal and New Brunswick provincial governments levy income tax based on your taxable income, which is your gross income minus eligible deductions, credits, and expenses. The amount of federal and provincial income tax deducted depends on the tax bracket your income places you in.
Canada uses a progressive income tax system with graduated tax rates based on income levels. Both the federal and New Brunswick provincial taxes utilize this progressive bracket structure.
2024 Federal Income Tax Brackets and Rates
For 2024, the federal tax brackets and corresponding rates are:
| Taxable Income | 2024 Federal Tax Rate |
| Up to $55,867 | 15% |
| $55,867 to $111,733 | 20.5% |
| $111,733 to $173,205 | 26% |
| $173,205 to $246,752 | 29% |
| Over $246,752 | 33% |
As your taxable income increases, you move into a higher federal bracket, and the portion of income exceeding that threshold gets taxed at a higher marginal rate.
For example, if your taxable income is $70,000, your federal tax would be calculated as:
- 15% on the first $55,867 = $8,380
- 20.5% on the amount between $55,867 to $70,000 = $2,924
- Total federal tax = $11,304
2024 New Brunswick Provincial Tax Brackets and Rates
In addition to federal tax, the 2024 New Brunswick provincial income tax also uses the following graduated bracket structure:
| Taxable Income | 2024 Provincial Tax Rate |
| Up to $49,958 | 9.40% |
| $49,958 to $99,916 | 14.00% |
| $99,916 to $185,064 | 16.00% |
| Over $185,064 | 19.5% |
Your New Brunswick provincial income tax is calculated based on the applicable bracket under which your income falls.
Both the federal and provincial income taxes make up a significant portion of your payroll tax deductions and have a major impact on your net take home amount.
Marginal vs Average Tax Rates
When estimating your income taxes, it’s important to understand the difference between your marginal tax rate and your average tax rate:
- Marginal tax rate – The rate you pay on your next dollar of income, based on your tax bracket. As income rises, your marginal rate increases as you move into higher brackets.
- Average tax rate – Your total tax paid is divided by your total taxable income earned. This helps give context to your overall tax burden.
Knowing your marginal vs average rates helps you understand the impact of earning more income and how deductions can reduce taxes at your marginal rate.
2024 CPP Contribution Rates and Maximums
The Canada Pension Plan (CPP) is a public pension system that New Brunswick employees and employers must contribute to. The federal government sets the CPP contribution amounts each year.
For 2024, the CPP contribution rates and limits are as follows (Source):
- Maximum pensionable earnings: $68,500
- Basic exemption amount: $3,500
- Maximum contributory earnings: $65,000
- Employee/employer contribution rate: 5.95%
- Maximum employee/employer contribution: $3,867.50
- Maximum self-employed contribution: $7,735
If your income is $68,500 or higher, your maximum CPP contribution for 2024 will be $3,867.50. CPP contributions are tax-deductible, so they lower your taxable income.
2024 EI Premium Rates and Maximums
Employment Insurance (EI) provides temporary financial assistance to eligible workers. EI is funded through premiums paid by employees and employers based on annual rates.
For 2024, the EI premium rates and maximums are as follows (Source):
- Maximum annual insurable earnings: $63,200
- Premium rate: 1.66%
- Maximum annual employee premium: $1,049.12
- Maximum annual employer premium: $1,468.77
The maximum EI premium that can be deducted from an employee’s pay is $1,049.12 for 2024. EI premiums are tax deductible as well.
Other Deductions
In addition to statutory deductions like income tax, CPP, and EI, you may have other deductions taken off your pay, such as:
- Health insurance premiums
- Disability insurance
- Union dues
- RRSP contributions
- Wage garnishments
These amounts are deducted after income tax, reducing your net take-home pay.
Now that we’ve looked at the key components that make up your tax and deduction total, let’s examine some factors that can impact your take home amount.
What Factors Affect Take Home Pay in New Brunswick?
Several variables can influence your net take home pay in New Brunswick for 2024:
Income Level and Applicable Tax Bracket
Your income level and the tax bracket it places you in are key. Under Canada’s progressive tax system, higher-earning individuals move into higher tax brackets, where a greater proportion of their income goes towards taxes.
For example, someone earning $50,000 annually falls into the lowest New Brunswick tax bracket with an average provincial tax rate of around 13%. However, someone earning $110,000 moves into a higher bracket and faces an average provincial tax rate of around 19%.
As your taxable income rises, your net take home percentage declines. However, strategic tax planning can help offset higher rates.
Claiming Tax Deductions and Credits
Reducing your taxable income through deductions and credits increases your net take home pay in New Brunswick by lowering taxes owed.
Some common tax deductions available in 2024 in New Brunswick include:
- RRSP contributions – Deductible up to 18% of earned income.
- Child care expenses – Deductible for children under 16.
- Union dues – Dues paid for union membership are deductible.
- Moving expenses – May be deducted if moving for work.
- Medical expenses – Qualifying medical costs over 3% of net income.
- Pension contributions – Specific RPP contributions may be deducted.
There are also non-refundable tax credits like the basic personal amount, CPP contributions, and EI premiums that can reduce total tax payable.
Maximizing eligible deductions and credits will boost your net income. Even small changes can make a difference over an entire year.
Non-Tax Deductions
Deductions for health insurance premiums, disability insurance, union dues and other amounts that come off your pay after income tax will also decrease your take home pay in New Brunswick. For instance, $150 per month in insurance premium deductions will reduce your annual net income by $1,800.
CPP Contribution Amounts
Since CPP contributions are based on your income level, they make up a larger deduction off your gross pay as your earnings rise. An individual earning $130,000 will pay the maximum deduction of $3,867.50 in 2024 vs. only $3,057 for someone making $60,000. Higher incomes mean increased CPP reductions.
EI Premium Amounts
While EI premiums remain at a maximum of $1,049.12 annually regardless of income, they still incrementally reduce net take home pay. However, future EI benefits can make up for these premium costs.
Job or Income Changes
If you change jobs or have a significant increase or decrease in income, you may move into a different tax bracket, which impacts your marginal rate and net take home amount. Use tax calculators to determine the effect of income fluctuations.
Below are some examples of how these factors influence net take home calculations.
Examples and Scenarios for 2024
Let’s look at a few scenarios to see how income levels, deductions, credits, and rate changes impact take home pay calculations for 2024 in New Brunswick.
Take Home Pay Calculation for a $65,000 Gross Salary
For an individual with an annual gross salary of $65,000:
| Gross pay | $65,000 |
| Estimated Federal Tax | $10,199 |
| Estimated Provincial Tax | $4,561 |
| CPP Contributions | $3,867.50 |
| EI Premiums | $1,049.12 |
| Total Deductions | $19,677 |
| Take Home Pay | $45,323 |
Impact of Claiming the Basic Personal Amount
No credits claimed
- Gross salary: $65,000
- Total deductions (per calculator): $19,677
- Take home pay: $45,323
With a basic personal amount of credit
- Gross salary: $65,000
- Total deductions (per calculator): $19,177
- Take home pay: $45,823
Take home pay increased by $500 by claiming the basic personal amount.
Take Home Pay Based on 2024 Tax Brackets
Here is a comparison of estimated take home pay in New Brunswick at different income levels using our 2024 New Brunswick take home calculator:
| Gross Annual Salary | Estimated Net Take Home Pay | Avg. Tax Rate |
| $45,000 | $35,567 | 21% |
| $65,000 | $45,823 | 25% |
| $85,000 | $57,032 | 30% |
| $110,000 | $71,173 | 35% |
| $175,000 | $106,715 | 39% |
This demonstrates how moving into higher marginal tax brackets reduces net take home pay. Strategic tax planning can help offset some of the higher rates.
Impact of Family Situation on Take Home Pay
Your family situation impacts required take home income to cover expenses. For a gross salary of $90,000:
Single, no dependents
- Estimated federal tax: $16,196
- Estimated provincial tax: $9,201
- Estimated CPP/EI: $5,754
- Take home pay: $58,849
Married, 3 dependents
- Estimated federal tax: $12,900
- Estimated provincial tax: $7,501
- Estimated CPP/EI: $5,754
- Take home pay: $63,845
Even at the same income, take home pay varies based on marital status, dependents, and family benefits/credits claimed.
Below are some common questions about calculating take home pay in New Brunswick.
Key Takeaways
- Your net take home pay in New Brunswick is your total after-tax income after all deductions.
- Know the latest tax bracket thresholds and deduction maximums when estimating take home pay.
- Use tax calculators and tools to estimate your 2024 take home income for budgeting.
- Talk to a tax professional to maximize legal deductions and tax planning strategies.
- Accurately calculating your 2024 net pay in New Brunswick gives you greater financial control.
Estimating your take home pay in New Brunswick for 2024 allows you to plan your budget and finances. Tax planning can legally maximize your net income. Speak to an accountant or financial advisor for help optimizing your take-home amount.
Learn how to estimate your potential net take home pay in different Canadian provinces based on your gross salary, tax brackets, and deductions.
- Take Home Pay in Alberta
- Take Home Pay in British Columbia
- Take Home Pay in Ontario
- Take Home Pay in Manitoba
- Take Home Pay in Quebec
- Take Home Pay in Nova Scotia
- Take Home Pay in Saskatchewan
FAQs related to take home pay in New Brunswick
How can I reduce my taxes and increase net pay in New Brunswick?
You can reduce taxes and increase net pay by claiming deductions like RRSP contributions, child care expenses, moving expenses, medical expenses, union dues, and other eligible tax credits.
When are personal income taxes due in New Brunswick?
Personal income taxes are due on April 30 each year in New Brunswick. Self-employed individuals have until June 15 to file their taxes.
What records should I keep for income tax filing in New Brunswick?
You should keep all tax records and supporting documents for at least 6 years. This includes pay stubs, bank statements, receipts, and any other documents related to income, deductions, or credits claimed.
How long does it take to get a tax refund in New Brunswick?
If you file online, most tax refunds are issued within 2 weeks. Paper tax returns can take 4-8 weeks to process before receiving a refund.
Can I get help calculating my take home pay and filing taxes in New Brunswick?
Yes, you can get help from an accountant or tax professional to ensure you maximize deductions and accurately file your taxes. The CRA also has tools to help estimate take home pay.
How long should I keep my 2024 tax records and docs?
Keep all tax records and supporting documents for at least 6 years per CRA recommendations. This includes things like receipts, pay stubs, and bank statements.
Article Sources
How to Estimate Your Take Home Pay in New Brunswick
Ben Nguyen