Is Child Support Taxable in New Brunswick? 2026 Tax Guide
By Antonio G. Jimenez, Esq. | Florida Bar No. 21022 | Covering New Brunswick divorce law
Child support payments in New Brunswick are not taxable income to the recipient parent and are not tax-deductible for the paying parent. This has been the rule for all child support orders or written agreements made after May 1, 1997 under Income Tax Act s. 56.1 and Income Tax Act s. 60(b). If you are asking "is child support taxable New Brunswick," the answer is no, both federally and provincially, because New Brunswick follows the federal Income Tax Act for personal tax treatment.
Key Facts: Child Support and Taxes in New Brunswick (2026)
| Item | Detail |
|---|---|
| Filing Fee (Divorce) | Approximately $170 at the Court of King's Bench of New Brunswick (as of April 2026; verify with your local clerk) |
| Waiting Period | 31 days after the divorce judgment is granted before it becomes final under Divorce Act s. 12(1) |
| Residency Requirement | At least one spouse must be ordinarily resident in New Brunswick for 1 year before filing under Divorce Act s. 3(1) |
| Grounds for Divorce | One-year separation, adultery, or mental/physical cruelty under Divorce Act s. 8(2) |
| Property Division Type | Equal division of marital property under the Family Law Act, S.N.B. 2020, c. 23 |
| Child Support Taxable? | No — tax-free to recipient, non-deductible for payer |
| Governing Support Law | Federal Child Support Guidelines, SOR/97-175 |
| Tax Rule Effective Date | May 1, 1997 (for post-1997 orders/agreements) |
The Core Rule: Child Support Is Tax-Neutral in New Brunswick
Child support paid under any court order or written agreement made after April 1997 is completely tax-neutral in New Brunswick: the recipient pays $0 in tax on it, and the payer gets $0 deduction. This was established by the 1997 amendments to the Income Tax Act that repealed the old "inclusion/deduction" system. Under Income Tax Act s. 56.1(4), the "child support amount" is excluded from the recipient's taxable income, and s. 60(b) denies the payer any deduction for those same amounts.
Before May 1, 1997, Canadian tax law treated child support the same way spousal support is still treated today — the payer deducted it and the recipient reported it as income. The Federal Court of Appeal's decision in Thibaudeau v. Canada, [1995] 2 S.C.R. 627, upheld that older system, but Parliament repealed it months later in Budget 1996. The new rules applied automatically to all orders issued on or after May 1, 1997, and allowed older orders to "elect" into the new system by filing Canada Revenue Agency Form T1157.
New Brunswick does not impose a separate provincial income tax on child support. The province's personal income tax is calculated on the federal taxable income base through a tax collection agreement with the Canada Revenue Agency (CRA), meaning any amount excluded federally is automatically excluded provincially. A parent in Moncton, Saint John, Fredericton, or Bathurst reports the same $0 of child support income on both federal and New Brunswick tax lines.
How Child Support Is Calculated in New Brunswick
Child support in New Brunswick is calculated using the Federal Child Support Guidelines, SOR/97-175, which set the table amount based on the payer's gross annual income, the number of children, and the province of residence. For example, a New Brunswick payer earning $60,000 per year with two children owes approximately $900 per month in base table support as of the 2017 tables still in force in 2026. These amounts are set by regulation, not negotiation, and courts rarely deviate from them.
The Guidelines apply in two ways in New Brunswick. For married or divorcing spouses, the federal Divorce Act, R.S.C. 1985, c. 3 (2nd Supp.), s. 15.1 requires courts to apply the Federal Child Support Guidelines when ordering support. For unmarried parents and common-law partners, the provincial Family Law Act, S.N.B. 2020, c. 23, s. 41 adopts the same Guidelines, so the calculation is identical whether the parents were married or not.
The Guidelines have three components. First, the base "table amount" covers ordinary expenses for food, clothing, shelter, and basic activities. Second, "section 7 special or extraordinary expenses" — including child care, health insurance premiums, extraordinary education costs, and post-secondary tuition — are shared proportionally to each parent's income. Third, in shared parenting situations where each parent has the child at least 40% of the time, Guidelines s. 9 allows the court to adjust the amount using the set-off approach.
Why Child Support Is Tax-Free: The Policy and the Statute
Child support is tax-free because Parliament concluded in 1996 that taxing it unfairly reduced the money available for children. Before the May 1, 1997 reform, recipients (usually mothers) paid tax on support while payers (usually fathers) deducted it. Finance Canada estimated the change would shift about $240 million per year in tax revenue to the federal government but put more net dollars in children's hands, because the recipient's marginal tax rate was often lower than the payer's.
The statutory mechanism is straightforward. Income Tax Act s. 56.1(4) defines a "child support amount" as any support amount identified in an order or agreement that is not specifically designated as spousal support. That definition matters: if an order just says "support of $2,000 per month for the spouse and child," the CRA will treat the entire amount as child support — and therefore non-taxable to the recipient and non-deductible for the payer — unless spousal support is identified separately.
This "child support first" rule under s. 56.1(3) also means that if a payer falls behind, any partial payments are applied to child support obligations before spousal support. A New Brunswick payer who owes $1,000 in child support and $500 in spousal support and pays only $1,200 will have $1,000 allocated to child support (non-deductible) and only $200 to spousal support (deductible). This order of application is automatic under the Income Tax Act and cannot be changed by private agreement.
Spousal Support Versus Child Support: Tax Treatment Comparison
Spousal support in New Brunswick remains fully taxable to the recipient and fully deductible for the payer under Income Tax Act s. 56(1)(b) and s. 60(b), provided four conditions are met: the amount is paid periodically, under a written agreement or court order, to a spouse or former spouse living separate and apart, and identified as spousal support. This creates a sharp divide between the two types of family support in every New Brunswick separation.
| Feature | Child Support | Spousal Support |
|---|---|---|
| Taxable to recipient? | No | Yes (if periodic) |
| Deductible by payer? | No | Yes (if periodic) |
| Governing provision | ITA s. 56.1(4), 60(b) | ITA s. 56(1)(b), 60(b) |
| Effective since | May 1, 1997 | Long-standing |
| Lump sums taxable? | No | No (lump sums are not deductible/taxable) |
| Reported on T1 return? | No | Yes — lines 12800/21999/22000 |
| CRA registration required? | Optional | Recommended for audit defense |
Because of this contrast, how an order is drafted in New Brunswick matters enormously. If a couple agrees to $3,000 per month in total support without specifying how much is spousal and how much is child, the CRA will treat 100% as non-taxable child support under s. 56.1(4). Lawyers drafting New Brunswick separation agreements will typically identify each amount separately on the face of the document so the payer can claim any spousal deduction.
Claiming Children on Taxes After Divorce in New Brunswick
The Canada Child Benefit (CCB), the Eligible Dependant Credit, and the GST/HST credit are the three main tax benefits tied to claiming children on taxes after divorce in New Brunswick. The CCB is a tax-free monthly payment worth up to $7,787 per year for each child under 6 and $6,570 for each child aged 6 to 17 (2026 indexed amounts), administered by the CRA under Income Tax Act s. 122.6. It is paid to the parent who is "primarily responsible" for the child's care.
In sole-parenting situations where one parent has primary parenting time, that parent receives 100% of the CCB. In shared parenting arrangements where each parent has the child between 40% and 60% of the time, CRA splits the CCB 50/50 under s. 122.6 "shared custody parent" rules — each parent receives half the monthly payment based on their own income, not combined. The same split applies to the GST/HST credit and the New Brunswick Child Tax Benefit.
The Eligible Dependant Credit (line 30400 on the T1) is the single most valuable deduction for a separated New Brunswick parent, worth up to $15,705 in 2026 at the federal 15% rate, for a federal tax savings of roughly $2,355. Only one parent can claim it per child per year, and a parent paying child support generally cannot claim the credit under Income Tax Act s. 118(5). The 2011 amendment at s. 118(5.1) carved out an exception for shared parenting where both parents pay set-off support — they can agree which parent claims the credit.
Registering Your Support Order With the CRA
New Brunswick parents should register their support order with the CRA by filing Form T1158 ("Registration of Family Support Payments") within 30 days of the order being signed. Registration is not required for child support (since it's non-taxable anyway), but it is strongly recommended whenever an order contains any spousal support component, because the CRA will deny the spousal deduction on audit if the order was never registered.
T1158 registration also protects against future disputes. If the order is later varied in New Brunswick court — for example, to change the child support amount after a payer's income changes — a new T1158 must be filed within 30 days of the variation order. Failing to update registration can create a "no-registered-order" gap that exposes the spousal support deduction to reassessment under s. 60(b) for the affected tax year.
For child support alone, the practical impact of registration is narrow. The CRA will still accept that child support is non-taxable under s. 56.1(4) whether or not you register the order, because the statute itself excludes the amount from income. Registration mainly matters for: (1) spousal support deductions, (2) proving the order's terms in case of audit, (3) and enabling the CRA to share data with the New Brunswick Family Support Orders Service, the provincial enforcement agency.
Enforcement: New Brunswick's Family Support Orders Service
The Family Support Orders Service (FSOS) enforces 100% of New Brunswick child support orders automatically unless the recipient opts out, collecting approximately $50 million in support per year across about 10,000 open files. FSOS is a statutory arm of the Department of Justice and Public Safety under the Support Enforcement Act, S.N.B. 2005, c. S-15.5, and its services are free. Payers send their monthly payments directly to FSOS, which then remits the funds to the recipient.
FSOS has broad enforcement powers. It can garnish wages under s. 27 of the Support Enforcement Act, intercept federal income tax refunds through the CRA's Refund Set-Off Program, suspend driver's licences under s. 44, place liens on real property, report arrears to credit bureaus, and obtain federal licence denial (passport, pilot, marine) under the federal Family Orders and Agreements Enforcement Assistance Act. For a New Brunswick payer $3,000 or more in arrears, FSOS can trigger all of these simultaneously.
Crucially, FSOS enforcement has no tax consequences for the payer. Even when wages are garnished, the child support portion remains non-deductible under s. 60(b). The only tax-relevant moment is if FSOS intercepts a federal refund and applies it to arrears — in which case the refund is treated as paid to the recipient as ordinary child support, still tax-free under s. 56.1(4). The payer cannot claim any deduction or credit for the intercepted amount.
Recent Law Changes: 2024 to 2026
No changes to the core tax treatment of child support took effect in New Brunswick between 2024 and 2026. The non-taxable/non-deductible rule under s. 56.1(4) and s. 60(b) has been in force since 1997 and has not been amended. However, three related changes affected New Brunswick separated families during this period, which indirectly interact with child support taxability and planning.
First, the 2021 amendments to the Divorce Act replaced "custody" and "access" terminology with "parenting time" and "decision-making responsibility" under s. 16.1 and s. 16.2. New Brunswick's Family Law Act, S.N.B. 2020, c. 23, which came into force July 1, 2022, mirrored those federal changes for unmarried parents. This did not change child support amounts, but it changed how courts describe parenting arrangements in orders registered with the CRA.
Second, the Canada Child Benefit has been indexed annually to inflation. The maximum CCB payment rose from $7,437 per child under 6 in 2023 to $7,787 in 2026, and the phase-out thresholds (around $37,487 family net income) have likewise been indexed. Third, the federal basic personal amount (affecting the Eligible Dependant Credit calculation) increased to $16,129 in 2026 for most taxpayers, marginally increasing the value of that credit for separated New Brunswick parents.
Common Mistakes That Cost New Brunswick Parents Money
The most common mistake is reporting child support as income on a T1 return. Parents who received support in 2026 should report $0 on line 12800 (support payments received) for the child support portion; only the spousal support portion (if any) goes there. A parent who mistakenly reports $12,000 of annual child support as income could pay $1,500 to $3,500 in unnecessary combined federal and New Brunswick provincial tax depending on their marginal rate.
The second mistake is both parents claiming the Eligible Dependant Credit in a shared parenting situation. Income Tax Act s. 118(4)(b) allows only one claim per child per year. If both parents claim it, the CRA will reassess both, disallow both claims, and require the parents to decide between themselves — often in a year when they are least willing to cooperate. Separation agreements should always specify which parent claims the credit for which tax year, alternating if necessary.
The third mistake is failing to update the CRA after a parenting arrangement changes. The CCB is paid based on CRA records, not the court order. If a child moves in with the previously non-primary parent and that parent does not file Form RC66 to update CRA records, the other parent continues receiving CCB and creates a debt that eventually becomes repayable under s. 160.1 of the Income Tax Act, with interest charged at the CRA's prescribed rate (currently around 9%).
Frequently Asked Questions
FAQs About Child Support and Taxes in New Brunswick
Is child support taxable in New Brunswick?
No. Child support paid under any court order or written agreement made after May 1, 1997 is non-taxable to the recipient and non-deductible for the payer under Income Tax Act s. 56.1(4) and s. 60(b). New Brunswick's provincial tax follows federal rules, so the $0 tax treatment applies at both levels automatically.
Do I have to report child support on my tax return in New Brunswick?
You must still report the amount on line 12799 of your T1 return for informational purposes, but you enter $0 on line 12800 (taxable support received) for the child support portion. This 2-line structure lets the CRA match payments between payer and recipient. Failing to report can trigger a CRA reassessment requesting documentation within 30 days.
Can I deduct child support payments on my New Brunswick tax return?
No. Under Income Tax Act s. 60(b), child support payments are not deductible from income for tax years after 1996. A New Brunswick payer earning $80,000 per year and paying $12,000 in child support deducts $0 and still pays tax on the full $80,000. Only spousal support (paid periodically under a written order or agreement) remains deductible.
Who claims the children on taxes after a divorce in New Brunswick?
Only one parent per child per year can claim the Eligible Dependant Credit (line 30400), worth up to $15,705 federally in 2026. The parent paying child support generally cannot claim it under s. 118(5), except in shared parenting with set-off support where parents can agree. The Canada Child Benefit is split 50/50 automatically in shared parenting under s. 122.6.
What happens if my separation agreement does not separate spousal from child support?
The CRA will treat the entire amount as child support under s. 56.1(4), making all of it non-taxable to the recipient and non-deductible for the payer. A combined "$3,000 per month family support" clause costs the payer the full spousal support deduction, which can be worth $5,000 to $12,000 per year in federal and New Brunswick tax savings depending on income.
Are child support arrears taxable when paid late in New Brunswick?
No. Arrears retain the same tax character as the original obligation. A parent who pays $15,000 in 2026 to clear a child support backlog from 2023-2025 is still paying non-deductible child support under s. 60(b), and the recipient reports $0 of it as income. Lump-sum retroactive child support awards are also tax-free under the same rule.
Does the CRA need to know about my New Brunswick child support order?
You should register the order using Form T1158 within 30 days, especially if it includes any spousal support. Registration is technically optional for pure child support orders because s. 56.1(4) excludes those amounts from income regardless. However, registration creates an audit-proof record and is mandatory to claim the spousal support deduction under s. 60(b).
Is the Canada Child Benefit affected by child support received?
No. The CCB is calculated based on your "adjusted family net income" from line 23600, and because child support is excluded from income under s. 56.1(4), it does not reduce your CCB. A Fredericton parent receiving $14,000 in child support annually still qualifies for the full CCB based only on their employment and investment income.
What if my child support order is from before 1997?
Pre-May 1997 orders are still taxable/deductible unless both parents elected into the new rules by filing Form T1157 with the CRA. If no election was made, the payer still deducts the payments and the recipient still reports them as income. Any variation of a pre-1997 order on or after May 1, 1997 automatically converts it to the non-taxable regime under s. 56.1(4).
How much is the divorce filing fee in New Brunswick in 2026?
The filing fee to start a divorce petition at the Court of King's Bench of New Brunswick is approximately $170, plus additional fees for service and the central divorce registry search. As of April 2026, a contested divorce typically involves $200 to $300 in total court fees. Verify current amounts with your local clerk's office before filing.
This guide is written for general information about New Brunswick family tax law and does not constitute legal or tax advice. For advice specific to your situation, consult a New Brunswick family lawyer or a Canadian tax advisor. Child support taxability is governed by the federal Income Tax Act, and enforcement is handled by the New Brunswick Family Support Orders Service.