Government unveils proposed property tax reforms

Release

Department of Environment and Local Government, Department of Finance and Treasury Board, Service New Brunswick

May 27, 2026
Updated May 28, 2026

FREDERICTON (GNB) – The government has tabled legislation intended to make New Brunswick’s property tax system more stable, predictable and transparent. 

“Today’s bill is the result of consultations, conversations and hard work,” said Local Government Minister Aaron Kennedy. “This legislation will help us set the foundation for a property tax system that is more transparent, predictable and stable, starting in the 2027 taxation year.”

An Act Respecting Property Tax Reform contains several reforms geared toward making incremental changes to provide greater predictability and stability within the property tax system. Reforms include:

Local rate stabilizers to help local governments move away from property taxes based on assessments, and towards property taxes based on their service needs and budget decisions.

• An enhanced Property Tax Allowance program to increase benefits and provide support to more qualifying homeowners.
• Adjustments to the upper and lower boundaries of the existing rate multiplier, giving greater flexibility for local governments to set tax rates for non-residential properties and those with heavy industry.
• An extended appeal period to give property owners 30 days to appeal results of a property assessment review; the current appeal period is 21 days.
• A redesigned property tax bill to make the bills more user-friendly and to clearly distinguish between local government and provincial government taxation.

The proposed reform also includes the potential for a new heavy industry revenue transfer grant. This would aim to improve fairness by ensuring communities with heavy industries receive more direct financial support to help them cover the additional costs of servicing these properties. A proposal for this grant is expected in 2027.

“Housing prices in New Brunswick have surged at a pace people haven’t seen before, and property tax bills have followed in ways that feel sudden, unpredictable and unaffordable,” said Kennedy. “With these changes, your property taxes will not be driven by changes in property values alone. They will reflect the needs, budgets and service decisions of your local community, with clear explanations on your property tax bills.”

“I’m thrilled with the new legislation because it’s a major step forward in political accountability at the municipal level,” said Jerry Iwanus, a retired appraiser with 20 years of experience in property valuation, who was an advisor throughout the property tax consultation and review process. “Local governments will now have to justify increased taxes by answering for their spending instead of simply blaming increased assessments. This is a long time coming, and it shows government is willing to be bold and adopt best practices in reforming the property tax system.”

“This legislation demonstrates that government has been listening to industry partners and the public as it works toward reforming a complex and long-standing property tax system,” said Jason Stephen, government relations chair with the New Brunswick Real Estate Association. “While we recognize that comprehensive modernization will require ongoing effort beyond a single piece of legislation, we are encouraged by these initial steps toward improving fairness, predictability and transparency for New Brunswick property owners.”

The government launched a property tax overhaul project in 2025. It was divided in three phases: discovery, solution-building and implementation. The project featured a consultation and engagement process that included conversations with business communities, local governments, municipal associations and the public.

27-05-26

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