Tax Benefit Programs
Request for Residential Property Tax Credit
Application/Declaration for Property Tax Allowance
Tax Benefit Programs for Homeowners
If you own a property that is your principal residence, you could be eligible for a residential property credit. A principal residence is where you eat and sleep most of the time. This tax credit goes against the provincial portion of your property tax. You would still have to pay all of your municipal property tax.
To be eligible for the Assessment Gap (Permanent Assessment Exemption) and the Assessment Spike Protection mechanism, the Residential Property Tax Credit must be in place, effective January 1st, 2012. You only need to apply for the Residential Property Tax Credit once. You will continue to receive it for as long as you own and occupy the property. This program is divided into five categories:
- 100% Tax Credit - If you own and live in your principal residence for 100% of the year (from Jan. 1 to Dec. 31), you may be able to get a full tax credit for 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, as the owner, live in. If your property includes a lot of land, you would only be eligible for a tax credit on up to 0.5 hectares of land.
- Partial Tax Credit - If you buy a property that will be your principal residence, and you move in after January 1st, you will 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.
- New Construction Tax Credit - For new constructions that are not yet completed, contractors 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.
- 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.
- 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. Apply now for the Residential Property Tax Credit.
Property Tax Allowance
The Property Tax Allowance gives a tax break to low income property owners. To qualify for the Property Tax Allowance, you must own your property, it must be your principal residence, and you must be receiving the Residential Property Tax Credit.
If you and your spouse have a combined taxable income of:
- less than $22,000, you are eligible for up to a $300 rebate.
- Between $22,001 and $25,000, you are eligible for up to a $200 rebate.
- Between $25,001 and $30,000, you are eligible for up to a $100 rebate.
Tax Benefit Program for Farmers
Farm Land Identification Program
This program helps farmers keep their property for agricultural use by deferring provincial property tax on eligible farmland and outbuildings.
To be eligible for the program, the land must be in active use by an agricultural operation or be suitable for use by an agricultural operation.
Note: when a property registered in the Farm Land Identification Program is deregistered or withdrawn from the program by the assessed owner, the deferred taxes to a maximum of 15 previous years together with associated interest becomes due and payable.
To find out more, or to apply, please see:
Tax Benefit Program for Charitable or Not-For-Profit Organizations
Assessment Reduction Program
Depending on the use of the property, charitable or not-for-profit organizations can get a reduction in the value of the property – resulting in a lower property tax bill.
To qualify, the main activities hosted on the property must provide services to the community, and benefit one or more of the following:
- relief of poverty;
- services to youth;
- services to the elderly;
- services to the disabled or disadvantaged;
These activities must also be primarily funded through donations and volunteer efforts.
You must apply by September 30th of the current year to be considered for the following year. Apply now for a tax benefit.