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New Brunswick imposes some of the highest property tax rates in Canada, but that doesn’t mean that residents have the highest tax bills. This article will explain what the property tax rates in New Brunswick are and how to pay them.
New Brunswick property tax, explained
Property taxes are based on a property’s value and paid by property owners. In most cases, property tax is imposed on “real” property, which refers to land and buildings on that land, but many jurisdictions also tax other kinds of tangible property, including yachts.
In New Brunswick, property tax is referred to as “real property tax.”Wealthsimple Tax is a simple way to file your taxes. File your return with confidence it’s done right, and pay what you want—there’s no catch.
The government uses property tax for services that help the community, such as funding water and sewer improvement projects, fire protection, law enforcement, road and highway improvement, and libraries.
Property tax rates in New Brunswick
In New Brunswick, the amount of property tax paid by property owners is based on the following factors:
Assessed value: SNB (Service New Brunswick) is tasked with assessing all real property in the province to determine each property’s true and real value.
Provincial rates: New Brunswick provincial tax rates are regulated by the Real Property Tax Act. Currently, the tax rate for residential housing is $1.1233 per $100 of the assessed value and $1.2173 on other residential property. The non-residential property tax rate is $2.1860 per $100 of assessed value. Property owners will also incur an additional $0.0194 per $100 of assessed value to help offset the assessment cost.
Local rates (municipal/rural): The SNB will provide a total property assessment base to the Department of Environment and Local Government. This is required for each municipal and rural community and is used to prepare the annual budget and local tax rates. In New Brunswick, non-residential property is taxed at a rate of 1.5 times the residential property rate. The rate varies each year, as determined by the Department of Environment and Local Government and municipalities and rural communities.
Other rates: There are various other rates imposed on property that fit unique situations. For example, there is a special levy imposed on property in certain local service districts (LSDs) and rural communities. There are special taxes on property that is neither owner-occupied nor exempt under the Assessment Act (an additional $0.0486 per $100 of assessed value).
Property tax notices sent in New Brunswick
SNB’s Property Assessment Services assesses all the real property in the province in compliance with the Assessment Act and its regulations. On the first working day of October every year, a Property Assessment Notice is mailed to all real property owners in the province. The notice shows the Real Property Assessment Value and details of valuation.
Property owners who disagree with the Real Property Assessment Value can “request for review.” The deadline for such a request is listed on the Property Assessment Notice (usually 30 days after the mailing date of the notice).
The Property Tax Notice (the tax bill) is issued once a year, usually around March (the mailing date is April 1 for 2022). The Property Tax Notice shows the mailing date, payment deadline and penalty for overdue accounts, arrears due, credits, Business Improvement Area (BIA) rate (for non-residential buildings) and Residential Tenancy Fee.
The Tax Notice also includes a payment stub to be attached with the payment to ensure the payment is posted to the accurate tax account.
Tax statements are issued from March to December each year. Tax statements do not have a payment deadline because the purpose is to acknowledge the taxpayer of owing taxes that are already past the due date.
How to pay property taxes in New Brunswick
Over the counter, or by mail:
You can pay with a cheque deposit or money order along with the payment stub on the bottom of the Tax Notice, to the following address:
Department of Finance, Revenue and Taxation Division, P.O. Box 100, Fredericton, NB E3B 1B0
Note: Ensure your Property Account Number (PAN) is written on each cheque.
Use an Interac Online-enabled bank account to make payments directly to the SNB online.
Your financial institution:
Pay through online banking, telephone banking, ATM or teller services.
Pay through Pay Simply, which accepts PayPal, Visa, Mastercard or Union Pay.
Note: This is a third-party service that has its own terms and conditions and charges a service fee.
Property Tax Equalized Payment Plan (EPP):
This is a new payment method for property owners in arrears to set up a payment arrangement that breaks their annual tax payment into 12 equal monthly payments. To establish a payment arrangement, apply through mail or call the Collection Services at 1-855-806-2472.
How New Brunswick property taxes compare to other provinces
New Brunswick imposes some of the highest property tax rates in Canada, with Saint John (1.78500%) and Fredericton (1.42110%) leading the country.
For comparison: Vancouver property owners pay 0.24683% in property taxes. However, residents of Vancouver face steep property prices. The average home price is well above $1 million, while home prices in New Brunswick cities, such as Fredericton, average at around $250,000. This can make a significant difference, considering property taxes are calculated based on the assessed value of the house.
Other areas that pay low property taxes include Abbotsford, Victoria, and Kelowna, all in BC, followed by Toronto and Calgary. St. John’s, Newfoundland, comes next at 0.73000%. Hamilton and London, Ontario residents pay high property taxes of 1.26196% and 1.35082%, respectively.
Frequently Asked Questions
Property tax rates in New Brunswick are based on provincial rates, local (municipal/rural) rates, Local Service Districts (LSD) provincial rates and other rates. There is no New Brunswick property tax on up to 0.5 hectares of residential: owner-occupied property. For residential: owner-occupied property more than 0.5 hectares and residential: non-owner-occupied property, the provincial rate is 1.1233%. Non-residential property is taxed at a 2.1860% provincial rate.
Property taxes are levied to help pay for basic services, such as fire protection and road maintenance. Note that the higher tax rate in New Brunswick does not necessarily translate into a higher tax bill as compared to other provinces. The province has lower property assessment costs as compared to most jurisdictions and the home prices are also among the lowest in the country.
The residential tax rate in the New Brunswick cities of Saint John and Fredericton are 1.78500% and 1.42110%, respectively, which are the highest residential tax rates in the country. However, average house prices in Saint John and Fredericton are also the lowest, so property tax bills compared to other provinces are similar.
Online banking: To pay property taxes from your financial app, search for Property Tax in the list of payees. Select the appropriate payee from PROV NB - PROPERTY TAXES, New Brunswick Tax, and New Brunswick Property Tax. Enter your Property Account Number (PAN) to set up the payment method.
Interac Online: Using an Interac Online enabled bank account to make payments directly to the SNB online.
Credit Card: Go to the Pay Simply website and choose “PROV NB - PROPERTY TAXES” from Payment Recipients and enter your Property Account Number (PAN) for the account number. Make payments using your Mastercard, Visa, PayPal, or Union Pay.
To calculate the property tax in New Brunswick, you need to find out the property tax rate that applies to your property and the assessed value of the property. To calculate the residential property tax the formula is: Residential property tax = RPT rate * assessed value of residential property. For instance, residential property tax in Fredericton for a $500,000 house is calculated as: $500,000 x 1.42110% (Fredericton’s residential tax rate) = $7,106.
Unpaid property taxes become overdue accounts. If the property owner fails to pay the overdue accounts, to recover the owing taxes, the province can auction the property after one year of the account being in arrears. Property owners who owe property taxes can now contact a collections officer to determine a monthly payment arrangement and avoid the commencement of tax sale action.
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