New Brunswick Proposes Property Assessment Freeze for 2026
Évolution fiscale
On May 6, 2025, New Brunswick’s Finance and Treasury Board announced a proposed one-year assessment freeze for the 2026 taxation year to allow the provincial government to continue to study property tax reform. The new government campaigned on the issue of tax reform last fall. As housing costs in the province have skyrocketed, residential property assessments have followed suit, and taxpayers whose assessments have risen by more than the average have seen significant tax increases as a result. If passed, the proposed legislation will freeze assessments at the 2025 level for one year, except in the case of new construction, improvements, errors, or changes in use; decreases in assessment value; or properties sold in 2025.
The freeze will not reduce property taxes and may not prevent tax increases. Most municipalities are faced with rising costs, and if the assessed value of new construction does not raise the additional tax revenue required, property tax rates will need to be increased to fund municipal operations and services. Unfortunately, taxpayers may not challenge property tax rates. Furthermore, the freeze will not address the issue of fairness and equity in New Brunswick’s assessment process. Indeed, a freeze will move assessments away from true market value and exacerbate any inequities between taxpayers.
However, the freeze should provide the government with more time to implement meaningful tax reform and, hopefully, consider the following changes:
Amending the property assessment legislation to require equity between similar properties—as is the case in most of Canada—and allow taxpayers the ability to challenge the classification of real property
Improving the technology used by assessors and introducing a true mass appraisal system
Addressing the current taxation inequity between homeowners and renters
The material presented in this communication is intended to provide general information only and should solely be seen as broad guidance and not directed to the particular facts or circumstances of any individual who may read this publication. No liability is accepted for acts or omissions taken in reliance upon the content of this piece. Before taking (or not taking) any action, readers should seek professional advice specific to their situation from Ryan, LLC or other tax professionals.