Property Tax Deferral Program for Seniors
This program provides property tax relief to eligible seniors in New Brunswick, who want to apply for a deferral of the annual increase in property taxes on their principal residence.
Deferred property tax and interest amounts constitute a lien against the property and become due and payable to the Province when the property is sold or transferred.
“Senior “: is defined as being age 65 or older, during the taxation year.
1. One of the property owners listed on the deed must be age 65 or older.
2. The property must be their principal residence.
3. The property must be currently receiving the Provincial Residential Tax Credit.
4. The property tax account must be in good standing, as of December 31, prior to the year of application.
“Base Year”: is defined as the most recent of the year prior to the year the person turns 65, the year they purchased the property or the year 2011.
1. The yearly deferral is the total annual tax increase over the Base Year.
2. Any amount deferred under this program is subject to the current annual interest rate of 3.07%. For qualifying applicants with a taxable family income over $124,178, the annual interest rate is 8.07%. The annual interest rates will be revised every year and set to the 10-year Provincial borrowing rate.
3. The total cumulative amount of tax deferral available is restricted to a maximum of 75% of the current year’s assessed value of the property.
4. Property owners can apply to make a total or partial payment (one or more years) on their deferred tax account, at any time.
Deferred property tax and interest amounts constitute a lien against the property pursuant to provisions established under the Real Property Tax Act.
The total unpaid tax deferral together with the associated interest shall become due and payable to the Province when the property is sold or transferred. Upon the death of the applicant, the deferral program can continue if the applicant is survived by a spouse who continues to own and live in the home as their principal residence. The surviving spouse does not need to be 65 years of age.
Once a property is registered in the program, the annual increase in property taxes plus interest is deferred. The Department of Finance will keep an account of the total deferred taxes and interest owing each year. The total taxes deferred under the program plus interest will be reflected on the annual property tax bill. When a property registered in the program is deregistered or the property ownership is transferred, a new statement will be issued and all deferred taxes together with the associated interest become due and payable to the Province.
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You must apply by December 31st of the taxation year in which you want to start deferring the annual increases in your property tax.