New Brunswick’s Proposed Property Assessment Freeze

The New Brunswick government has introduced legislation to freeze real property assessment values for one year, if passed. Additionally, the government proposed amendments to the Real Property Tax Act to broaden the equalized payment plan, which is currently limited to owner-occupied homes, to include non-owner-occupied residential, other residential, and non-residential or industrial properties. This change would extend penalty-free, twelve-installment payment status to more than 460,000 property owners.

Key Terms of the Freeze

Under the proposed amendments to the Assessment Act, 2026 assessments would be locked at 2025 levels, with certain exceptions. New construction or major capital improvements and changes in property use or classification would not be included in the proposal. Errors or omissions in existing assessments are exempt, and assessment decreases will still be permitted. Sales or transfers, subject to regulatory interpretation are also not included.

Impacts

The freeze, if passed, will affect roughly 430,000 properties, across both residential and non-residential categories. As the province’s total assessment base rose by 8.7% in 2025, adding $7.8 billion, this legislative hold could be a significant policy intervention.

For entities holding appreciating properties or actively acquiring assets in areas with strong price growth, such as Moncton, Fredericton, and coastal markets, a freeze at 2025 values could deliver near-term tax predictability and improved margins. Asset holders with below-market assessments could benefit most.

It is important to note that under the proposed amendments, assessment values for the 2026 taxation year would remain unchanged from those issued for 2025; this is a temporary, one-year freeze. While the one-year freeze may offer short-term stability, the province describes the move as a “first step” in longer-term tax reform. As such, property owners should view this measure as a temporary instrument rather than a strategic baseline. 

Payment Flexibility Extended Beyond Homeowners

Complementing the freeze is a proposed expansion to the province’s equalized payment plan. Currently available only to owner-occupied residential properties, the plan allows property tax to be paid in 12 monthly installments without penalty. The government now aims to extend eligibility to include non-owner-occupied residential, commercial, and industrial properties.

This shift has significant implications for property managers and owners. Monthly payment options could ease cash flow management, particularly in properties with seasonal revenue patterns or those operating with constrained working capital post-acquisition.

UMNB Response

The Union of Municipalities of New Brunswick (UMNB) and the Association francophone des municipalités du Nouveau-Brunswick (AFMNB) have expressed concerns about the proposal. According to UMNB, freezing assessments will remove up to $58 million in anticipated municipal revenue, equivalent to the full increase promised under the province’s fiscal framework by 2026.

Because assessments directly define the municipal tax base, freezing them, without providing corresponding compensation, could force municipalities to increase tax rates to fund services. This could lead to discrepancies in effective tax burdens across municipalities, with disproportionate effects.