New Brunswick's Non-Resident Speculation Tax Exempt Status

New Brunswick does not have a non-resident speculation tax of 15%. However, the province has a range of taxes, including property tax, income tax, and capital gains tax. The property tax rates vary depending on the type of property and local government, while the income tax rates range from 9.4% to 19.5%. New Brunswick's marginal capital gains tax rates depend on the income level, with the combined federal and provincial tax rate falling between 24.4% and 52.5%.

New Brunswick's marginal tax rate

Marginal tax rates in New Brunswick range from 9.4% to 19.5% of income, with the combined federal and provincial tax rate falling between 24.4% and 52.5%. The marginal tax rate increases as your income increases, meaning you pay higher taxes on the level of income that falls into a higher tax bracket.

The tax rate on the first $47,715 of your income is 9.4%. This is followed by:

• 14% on the next $47,716.
• 16% on the next $81,325.
• 19.5% on income over $176,756.

The basic personal amount for 2024 in New Brunswick is $13,044. This is the amount on which you are not required to pay any tax. You will not owe any provincial income tax if your income is lower than the basic personal amount.

New Brunswick also has a Low-Income Tax Reduction, implemented in 2001, which provides a non-refundable tax credit depending on your income. For 2023, you are eligible for this tax credit if your income is less than $45,252 or your family income is less than $70,118.

New Brunswick does not have a non-resident speculation tax of 15%. However, it does have a speculation tax on the sale of houses that are not the seller's primary residence.

Other provinces in Canada, such as Ontario and British Columbia, have a Non-Resident Speculation Tax (NRST) of 15-25% on the purchase of residential property by foreign entities.

Provincial property tax rates

The province of New Brunswick has some of the highest property tax rates in Canada, with Saint John and Fredericton leading the country. However, this does not necessarily translate to higher tax bills compared to other provinces, as New Brunswick has lower property assessment costs and some of the lowest property prices in the country.

Property tax in New Brunswick consists of a local (municipal) tax that is determined by the municipality and varies by location, and a provincial tax set by the provincial government. The total tax for residential properties depends on whether the property is the owner's primary residence or is rented out. If the property is rented out, the owner will have to pay both a provincial and a local tax. Otherwise, only a local tax is charged on owner-occupied properties. All other types of properties will have to pay both taxes. The breakdown of the tax rate varies across municipalities and local service districts.

The provincial government has implemented an incentive program to encourage the development of new rental units.

The provincial property tax rates for the various categories of property are legislated under the Real Property Tax Act. Effective January 1, 2023, the provincial rate on residential housing is set at $0.5617 per $100 of valuation, while the rate for other residential property is set at $1.0345. Non-residential property is subject to a provincial rate of $1.8560 per $100 of assessment. There is an additional provincial rate of $0.0194 per $100 valuation charged to all taxpayers to help defray the cost of assessing properties.

In New Brunswick, non-residential property is taxed at a rate of one and one-half times the rate on residential property.

Property tax relief programs

The Government of New Brunswick offers several property tax relief programs to support its residents. Here are some of the key programs:

• Residential Property Tax Credit: This program provides a tax credit for individuals who own and occupy their principal residence in New Brunswick. The credit is applied against the provincial portion of the property tax, while the municipal property tax must still be paid in full. The credit is ongoing once approved, and there is no need to reapply each year.
• Property Tax Allowance: Aimed at providing tax relief to low-income property owners, this program offers a rebate of up to $300 for households with a total taxable income of up to $22,000, a rebate of up to $200 for incomes between $22,000 and $25,000, and a rebate of up to $100 for incomes between $25,000 and $30,000. To be eligible, individuals must own their property and occupy it as their principal residence, while also receiving the Residential Property Tax Credit.
• Property Tax Deferral Program for Seniors: This program assists eligible seniors in New Brunswick by allowing them to defer the annual increase in property taxes on their principal residence. Deferred property taxes and interest accrue as a lien against the property and become payable when the property is sold or transferred.
• Housing Development Incentive Program: This program encourages the development of new rental units in the province.
• Farm Land Identification Program (FLIP): This program allows owners of farmland to defer portions of real property taxes on eligible agricultural land and farm outbuildings.
• Assessment Reduction Program: This program is available to charitable and not-for-profit organizations that own real property and meet specific eligibility conditions.
• Temporary Tax Relief Program: Introduced for the 2022 and 2023 taxation years, this program has been extended and expanded for 2024. It offers a property tax credit for eligible properties with annual assessment increases greater than 10%. The credit applies to the provincial and local portions of property tax, excluding recent sales, new construction, major improvements, or legislatively determined property values.

Property tax exemptions

The following groups are exempt from paying property taxes in New Brunswick:

• Most hospital, school, and government properties.
• Permanently and totally disabled veterans of war.
• Religious and non-profit organizations.

The state of New Jersey also offers property tax reductions to:

• Veterans of war.
• Low-income senior citizens.
• Disabled persons.

In addition, there are two programs administered by the Property Assessment Services of Service New Brunswick that may be available to the assessed owner of real property who occupies the property as their principal place of residence:

• Provincial Residential Property Tax Credit: Qualifying owner-occupied properties are not charged the $0.5617 provincial rate.
• Property Tax Allowance: Provides a $300 benefit to households with total taxable incomes up to $22,000, a $200 benefit to households with total taxable incomes between $22,000 and $25,000, and a $100 benefit to households with total taxable incomes between $25,000 and $30,000.

Property tax rebates

The province of New Brunswick offers several property tax relief programs for eligible homeowners. These include:

• The Residential Property Tax Credit: This is a tax credit that goes against the provincial portion of your property tax. It is available to those whose property is their principal residence, defined as where they eat and sleep most of the time. This credit only needs to be applied for once and will continue to be received as long as the recipient owns and occupies the property.
• The Property Tax Allowance: This program provides tax relief to low-income property owners. To qualify, you must own your property, it must be your principal residence, and you must be receiving the Residential Property Tax Credit. The rebate amount depends on the combined taxable income of the recipient and their spouse: if it is less than $22,000, they are eligible for up to a $300 rebate; if it is between $22,001 and $25,000, they are eligible for up to a $200 rebate; and if it is between $25,001 and $30,000, they are eligible for up to a $100 rebate.
• The Property Tax Deferral Program for Seniors: This program allows eligible seniors in New Brunswick to apply for a deferral of the annual increase in property taxes on their principal residence. Deferred property tax and interest amounts are paid back to the province when the property is sold or transferred.
• The Farm Land Identification Program (FLIP): This program allows owners of farmland to defer portions of real property taxes on eligible agricultural land and farm outbuildings.
• The Assessment Reduction Program: This program is available to charitable and not-for-profit organizations that own real property and meet the eligibility conditions.
• The Housing Development Incentive Program: This program provides incentives for the development of new rental units.

In addition to these programs, New Brunswick has implemented a spike-protection mechanism for most owner-occupied residential properties that have seen an assessment increase greater than 10% (excluding new construction, properties sold in the previous year, or those that have undergone major improvements). This mechanism was put in place in 2013 to protect eligible property owners from significant one-year spikes in their assessment.

Frequently asked questions