How property tax rates are set

Property taxes help pay for important services that New Brunswickers receive.  The provincial portion of property taxes pays for services like education, provincial roads, and healthcare. Property taxes collected for your local community pay for services like waste collection, public parks and trails, and fire and police services.

Tax rates are used to figure out how much property owners contribute to the local and provincial budget. These rates apply to both residential and non-residential properties:

• Residential properties include homes, cottages and apartments.
• Non-residential properties include businesses and industrial buildings.

In New Brunswick, local governments and rural districts set their budgets each year. They also decide on local property tax rates to meet their budget needs. These rates are based on the money needed to deliver public services within their communities. The budgets and local tax rates are sent to the provincial government, which uses them to calculate property tax bills. Property owners receive these bills in March.

The assessment base is the total value of all properties in a local area.

The provincial government provides local governments and rural districts their assessment base for taxation each fall.

Local governments, including rural districts prepare their budgets through the summer and fall. During this time, councils determine their budgetary needs. After receiving their assessment base for taxation, they set their tax rates based on the revenue needed to meet their budgets.

Businesses and industrial properties pay higher taxes than homes based on a “multiplier”. Non-residential and heavy industrial properties are taxed between 1.4 to 1.7 times the residential rate.

Local governments and rural districts submit their budgets to the provincial government in November. This information includes their local property tax rate and multiplier.

For rural districts, the Minister of Environment and Local Government reviews and approves the final budget and tax rates.

Some local governments (i.e. rural communities) may have extra charges for things like waste collection or fire protection.

Water and wastewater services are not funded by property taxes.  Instead, these services are paid for by user fees, which are charged only to those who use the system.

The Department of Finance calculates property tax bills based on the applicable tax rates, the property's assessed value, and any relief programs.

Property tax bills are sent to property owners in early March.