There is a question that comes up on almost every call I get from out-of-province buyers considering a cottage near Shediac or a rental property in Moncton.
"Are the property taxes really that bad?"
The answer is: it depends entirely on whether that property is your principal residence. And most people asking the question don't know those two situations are taxed differently in New Brunswick. Very differently.
New Brunswick is the only province in Canada with this structure. Worth understanding before you run the numbers on a beach house.
THE SHORT VERSION
If the property is your principal residence, the provincial residential property tax is offset by the Residential Property Tax Credit. Most owner-occupied homeowners in Greater Moncton effectively pay only their municipal rate.
If the property is not your principal residence (a rental, a cottage, a second home, an investment property), you pay the municipal rate AND the provincial rate on top. That provincial rate is $0.5617 per $100 of assessed value, set under the Real Property Tax Act and confirmed by the Government of New Brunswick.
That is the double tax people talk about. It is not a myth, and it is not small.
WHAT IT ACTUALLY COSTS
The math is simple. Take the assessed value of the property, divide by 100, multiply by $0.5617. That is the extra provincial charge per year, on top of whatever the municipal rate is.
On a $350,000 assessed property: roughly $1,966 per year extra.
On a $400,000 assessed property: roughly $2,247 per year extra.
On a $500,000 assessed property: roughly $2,809 per year extra.
Note the word "assessed." For the 2026 taxation year, New Brunswick froze the value for taxation at 2025 levels for many eligible properties. There are exceptions, including property transfers, new construction, major improvements, and changes in use. Confirm the assessed value applicable to your purchase with Service New Brunswick.
The municipal rate varies by area: Moncton, Shediac, Dieppe, and rural communities all have different rates. The provincial piece above is the constant. If you want to see what properties in each area are currently selling for before you run your numbers, the monthly market update breaks it down by community. Budget for all of it before you make an offer.
WHO THIS APPLIES TO
If any of these describe the property you are buying, you pay both the municipal rate and the provincial rate:
A rental property (single unit, duplex, or otherwise)
A vacation or seasonal property
A second home you do not live in as your principal residence
A property you own but rent out while living elsewhere
A property sitting vacant
The simple test: is this where you actually live, full-time, as your principal address? If yes, you qualify for the Residential Property Tax Credit. If no, you pay both.
WHO THIS DOES NOT APPLY TO
If you are relocating to New Brunswick (leaving Ontario or Alberta behind and making this your actual home), the double tax does not apply to you. Qualifying principal residences receive the Residential Property Tax Credit. Your lawyer handles the paperwork at closing, but confirm your tax status with Service New Brunswick after possession.
This is the part that trips up relocators who hear "NB has a double property tax" and assume it applies to them. It does not, as long as the property they are buying is where they plan to actually live.
If you are moving here and still own property back in Ontario, that Ontario property continues under Ontario's rules. The NB property you move into becomes your principal residence and gets the credit here.
HOW THIS IS DIFFERENT FROM THE LAND TRANSFER TAX
These are two separate things and people confuse them constantly.
The land transfer tax in New Brunswick is 1% of the purchase price or the assessed value, whichever is higher. It is paid once, at closing, by the buyer. It applies regardless of whether the property is owner-occupied or not.
The non-owner-occupied provincial property tax is annual. It shows up on your property tax bill every year as long as the property is not your principal residence.
On a $400,000 purchase: the land transfer tax is roughly $4,000, paid once. The non-owner-occupied provincial tax is roughly $2,247 per year, every year. At a ten-year hold, that is $22,470 in additional provincial tax over the life of the investment, not counting any assessment increases.
Run both numbers before you decide this investment makes sense.
WHAT THIS MEANS FOR THE SHEDIAC BEACH HOUSE
The Shediac short-term rental conversation comes up constantly right now, because Parlee Beach is real and the Airbnb income projections look good on paper. Here is where the double tax matters most.
If you are buying a cottage in Shediac as a short-term rental (meaning it is not your principal residence), you are paying both rates on that property every year. Add that to your carrying costs before you model the income. The people who get burned on cottage investments are almost always the ones who projected revenue without projecting every line of cost.
The double tax is one of several things that make a Shediac investment more complicated than the listing photos suggest. Zoning, coastal setbacks, and the actual permit picture for short-term rentals are the others. A separate post for another week.
THE QUESTIONS I GET ASKED MOST
Do I pay the higher rate if I move from Ontario to New Brunswick?
No. If the New Brunswick property becomes your principal residence, you generally qualify for the Residential Property Tax Credit. The higher provincial rate applies to properties that are not your principal residence.
Does buying a rental property here mean my taxes double?
Not exactly. You pay your municipal rate plus the provincial residential property tax that owner-occupied homes do not pay, which works out to roughly $0.5617 per $100 of assessed value. On a typical rental property in Greater Moncton that is a meaningful additional annual cost.
Can I change from non-owner-occupied to owner-occupied?
Yes. If you move into the property as your principal residence, your status can change once Service New Brunswick has the updated information. Your lawyer will normally handle this at closing if it applies to you.
CONFIRM YOUR OWN SITUATION
The rate confirmed here ($0.5617 per $100) is the provincial rate as set under the Real Property Tax Act, effective January 2023, and in effect for 2026. Municipal rates change annually, so your total bill depends on which area you are buying in.
To confirm your specific property's assessed value and estimated tax: Service New Brunswick property assessment.
For questions about how the credit applies to your situation, Service NB at 1-888-762-8600 is the right call. Confirming your tax status with a New Brunswick real estate lawyer before you close is also worth the ten minutes.
Thinking about buying a cottage, rental, or second home in New Brunswick? Send me the address. I'll estimate the carrying costs with you before you make an offer, including the property tax implications.
Call or text 506-852-6477. No pressure, just straight answers.
Strong Roots - Smart Moves
Shane MacPherson | REALTOR® | eXp Realty 506-852-6477
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