Owner-Occupied Residential Property Tax Credit in New Brunswick

You open your property tax bill and the amount is far higher than you expected. If you live in the home as your main residence, one common reason is that the bill was calculated at the higher rate for property that is not owner-occupied.

This article explains what the credit does, how the bill is built, and what you can do if the credit seems to be missing. It does not replace advice about your own situation, and the steps for applying or correcting a bill are best confirmed directly with Service New Brunswick.

This article covers the law of New Brunswick.

What the credit does

Owner-occupied primary residences receive the Residential Property Tax Credit. It reduces the provincial rate to $0 on the first 0.5 hectares of land around the home.

Residential property that is not owner-occupied is taxed at the higher provincial rate. If the credit is not applied to your property, your bill is calculated as if it were not your primary residence.

The credit deals with the provincial part of the bill. Your municipality or local government sets its own local rate separately.

Who generally qualifies

The credit is for an owner-occupied primary residence. In plain terms, that means you own the home and live in it as your main home.

• Rental properties and other homes you do not live in as your primary residence are taxed at the higher provincial rate.
• The credit covers the first 0.5 hectares of land around the home, so a larger lot may still have a taxed portion.
• Seniors aged 65 or older who receive the residential credit may also be able to use a tax deferral program.

Edge cases, such as a home that is partly rented, a recent move, or a property held through a trust or company, depend on the facts. Confirm them with Service New Brunswick or a lawyer.

How your bill is calculated

Service New Brunswick assesses each property annually, with values as of January 1. Local governments set their rates in the fall, and bills go out in early March.

The bill combines the local and provincial rates, each applied per $100 of assessed value. The formula is the assessed value divided by 100, multiplied by the local rate plus the provincial rate.

For 2024 to 2026, the provincial residential rate is $0.5617 or $1.0345 per $100 of valuation, depending on the property category in the Assessment Act. An additional tax of $0.0194 per $100 also applies in municipalities, rural districts and rural communities.

If the credit is missing from your bill

How to apply for the credit, and whether a missed application can be corrected for a past year, depends on Service New Brunswick's current process. Ask them directly and keep a record of what you are told.

Do not simply set the bill aside while you sort it out. The person in whose name the property is assessed must pay the taxes, they are due when the tax notice is mailed, and unpaid amounts attract penalties set by regulation.

If the amount looks wrong for other reasons, the assessed value may also be worth checking. Property assessment information is searchable online through Property Assessment Online using an address, Property Account Number or PID.

What to do next

• Find your property tax notice and note the assessed value and the rates used.
• Look up your property on Property Assessment Online to compare the details.
• Contact Service New Brunswick and ask whether the credit is applied to your property and what you need to do if it is not.
• Ask whether a correction can be made to the current bill and, if relevant, to earlier years.
• Ask about payment arrangements or timing so penalties do not build up while the issue is reviewed.
• If you are 65 or older, ask about the seniors tax deferral program.
• Speak with a lawyer if the answer is unclear or you disagree with it.

Frequently asked questions