Government of New Brunswick
The Permanent Assessment Gap (P-Gap) is being eliminated.
Questions? or 1-888-762-8600.

If the Real Property Assessment value is not equal to the Assessment for Taxation as indicated on the 2021 Property Assessment Notice you received in October, you may have a Permanent Assessment Gap (P-Gap).  If you are part of the approximate 102,000 homeowners in New Brunswick who currently benefit from the P-Gap, you will receive an amended Property Assessment Notice in January as part of the second cycle of 2021 assessment notices.


If you’d like more information regarding the Permanent Assessment Gap (P-Gap), please email or call 1-888-762-8600 and one of our trained service agents will be happy to assist you.

During 2011 and 2012, there was a legislated three percent cap placed on owner-occupied property assessments to protect homeowners from rapidly increasing property values.  The three percent cap was put in place as a temporary measure to allow Government adequate time to establish a more permanent solution.

For 2013, Government announced the replacement of the three percent cap with the 10 percent Spike Protection Mechanism and directed Service New Brunswick to return property values to a market value-based system.  In an effort to fairly transition properties back to market value, property assessment relief was provided to the 146,000 homeowners that benefited from the three percent cap through the Permanent Assessment Gap.

Eliminating the P-Gap will ensure all properties are fairly and consistently taxed based on real and true (market) value and provide additional financial resources for local governments.

This change is about fairness for all homeowners.  Those with a P-Gap have not been paying property taxes on the real and true (market) value of their home, while the majority have been paying taxes on this full value.

The additional funds will go to local governments to help pay for services such as emergency services, water and sewer, roads and much more.

As we continue to sustain the effects of the COVID-19 pandemic, we need to work together to find long-term solutions designed to strengthen New Brunswick’s economy for years to come.

The P-Gap was to remain with a property until it was transferred or a change in use occurred.  To date, approximately 102,000 homeowners still benefit from a Permanent Assessment Gap, down from the original 146,000.  If the status quo is maintained, it will take approximately 25 years for the P-Gap to be eliminated and for these properties to be taxed at real and true (market) value, resulting in the loss of millions of property tax revenue dollars for local governments.

The existing Spike Protection Mechanism will help mitigate the financial impact of this change on affected homeowners. The Spike Protection Mechanism will ensure an impacted property’s Assessment for Taxation does not increase by more than ten percent in a given year (excluding new construction and/or major improvements).

Based on 2021 assessment data, the average provincial P-Gap value is $6,900, and its removal will result in an average property tax increase in the range of $100.

No, impacted homeowners will simply now pay property taxes based on the real and true (market) value of their property, just like all other homeowners who do not benefit from the P-Gap.