Government of New Brunswick

Overview

The Residential Property Tax Credit can give property owners a tax break on their principal residence.

Eligibility

If you own and maintain a property as your principal residence, you may be eligible for a residential property tax credit. A principal residence is where you eat and sleep most of the time.

Description

The residential tax credit is applied against the provincial portion of your property taxes. You are still responsible for all of your municipal property tax.

You only need to apply for the Residential Property Tax Credit once. The credit will remain on the property until such time as a change in ownership or occupation occurs. This program is divided into five categories:

1. Full Tax Credit: If you own and maintain your property as your principal residence for the full year with the exception of vacations and holidays, you may be eligible for a full tax credit on the provincial tax portion of your property tax bill. In cases, such as duplexes, triplexes or houses with in-law suites, you would only be eligible for a tax credit on the portion of the property that you occupy as your principal residence and up to 0.5 hectares of land.

2. Partial Tax Credit: If you buy a property that will be your principal residence, and you move in after January 1st, you may be eligible for a partial tax credit for the portion of time that you own AND live on the property that year. For the period of time that the property is vacant, you will have to pay both the municipal and provincial taxes on it. When buying a property that is to be your principal residence, be sure you or your lawyer applies for this credit.

3. New Construction Tax Credit: For new constructions that are not yet completed, contractors or homeowners can apply for the New Construction Tax Credit and get a break on the provincial tax portion of the property tax bill. Only single-family residences qualify for this tax credit, and the residence must be vacant and never previously lived in. You must apply for this tax credit each year.

4. Residence occupied for at least 183 days in calendar year: This category is for those people who spend a great deal of time at a secondary residence, such as a cottage. To qualify for this tax credit, you must physically live at your principal residence for at least 183 days in a calendar year. You also must be considered a resident of New Brunswick. You can only get a tax credit on one property.

5. Properties purchased under an Agreement of Purchase and Sale: If you were in a “rent-to-own” situation, and you now own the property, you may be eligible for a retroactive tax credit for the three previous years. This property must have been and continue to be your principal residence, and you must have an Agreement of Purchase and Sale, which was registered with the Registry of Deeds in your county within 90 days of signing the Agreement.

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Fredericton