Greater Moncton Real Estate Blog

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

A client asked me recently if they really needed a home inspection on a brand new townhouse in Moncton. It was covered by a new home warranty, the builder had a solid reputation, and the home had just been completed. Why bother?

I told them the same thing I tell everyone: yes, get the inspection.

Here's why.

New home warranty is not the same as due diligence

New Brunswick new construction homes come with a warranty program that covers defects in materials and workmanship, structural issues, and a few other categories depending on the builder and program. That protection is real and it matters.

But a warranty is something you use after a problem shows up. A home inspection is how you find problems before they become your problem.

Those are two very different things.

Trades are busy. Schedules are tight. Things get missed.

We have excellent builders in Greater Moncton. I work with them regularly and I mean that. But homes are built by people, and people work under pressure. Schedules get compressed. Trades are stretched thin. And sometimes things get missed.

I recently did a walk-through on a 2024 townhouse and found a missing firewall between units. Not a cosmetic issue. A code requirement that affects fire safety and, depending on your insurance company, could affect your coverage.

The builder didn't try to hide it. It just got missed. It happens.

A home inspector would have caught it. That's exactly what they're there for.

A good inspector teaches you about your home

Here's something buyers don't always think about: a home inspection on a new build isn't just about finding defects. It's also one of the best ways to learn how your home actually works.

Where's the shut-off valve? How does the HRV system operate? What maintenance does the builder recommend for the first year? A good home inspector walks you through all of it, and that knowledge is worth something on its own.

First-time buyers especially benefit from this. You're not just buying a house, you're taking on responsibility for a building. Understanding the systems before you move in puts you in a much better position.

What a home inspector looks at on new construction

The focus is a bit different than on a resale home. With new construction, an inspector typically looks at:

Structural components: framing, foundation, roof
Mechanical systems: HVAC, HRV, plumbing, electrical
Building envelope: insulation, vapour barrier, windows, doors
Fire separation between units (in townhouses and semis)
Grading and drainage around the foundation
Any visible code or workmanship concerns

They're not checking for wear and tear. They're checking for missed steps, installation errors, and anything that could become a problem down the road.

When to book the inspection

Most standard agreements of purchase and sale in New Brunswick already include an inspection clause. What you want to do is add language to the additional terms and conditions that specifically addresses the timing for new construction. Here's the type of clause I typically recommend:

"The Buyer's home inspection shall be completed once construction of the property has been substantially completed by the Builder and the property is in a condition suitable for inspection, which is expected to be approximately ten (10) to fourteen (14) days prior to the agreed closing date. The Seller agrees to provide reasonable access to the property for the Buyer, the Buyer's REALTOR®, and the Buyer's chosen home inspector for the purpose of completing this inspection. This condition is included for the sole benefit of the Buyer."

That 10 to 14 day window matters. It gives the inspector time to do a thorough job, gives you time to review the report, and gives the builder time to address anything that comes up before your final walkthrough. Keep in mind that build schedules can shift, so make sure your clause language is flexible enough to account for delays rather than tied to a fixed date. If you leave it too late and something significant turns up, you have very little leverage and very little time.

Any reasonable builder will accept this kind of language. If they push back on it, that tells you something worth knowing before you're locked in.

Bottom line

New home warranty is a good thing. A home inspection is also a good thing. They're not the same thing and one doesn't replace the other.

I've been recommending home inspections on new construction for 15 years, and more so in the last 10. I've never had a client come back and say they regretted getting one. I've had clients come back and say they wished they had.

Get the inspection.

Questions about buying new construction in Greater Moncton? Call or text 506-852-6477. No pressure, just straight answers.  Buying new construction as part of a move from out of province? There's more on that, including why you want your own representation in a show home, in my Moving to Moncton guide.