New Brunswick has become one of Canada’s most sought-after destinations for out-of-province buyers, retirees, remote workers, and investors looking to escape the overheated markets of Ontario and BC. The question I get regularly from buyers calling from Toronto, Calgary, or across the border is: what does it actually cost to own property here as a non-resident?
The answer is more straightforward than most people expect — and considerably more affordable than what you’ll find in provinces like Ontario or British Columbia. Here’s the complete picture for 2026.
First, let’s define “non-resident”
In the New Brunswick property tax context, non-resident effectively means non-owner-occupied. The tax system doesn’t distinguish between someone from Ontario and someone from France — what matters is whether or not the property is your primary residence in the province.
There’s a separate federal definition of “non-resident of Canada” that applies to income tax and withholding rules when you eventually sell. We’ll cover both.
The non-owner-occupied property tax rate in NB
New Brunswick uses a two-tier property tax structure. Every property pays a local (municipal) rate determined by the municipality. Owner-occupied residential properties pay only that local rate. Non-owner-occupied properties — investment properties, seasonal cottages, properties owned by people living elsewhere — pay both the provincial rate and the local rate.
In practical terms, this means non-owner-occupied properties carry a higher annual tax bill than an identical home next door that’s owner-occupied.
As a benchmark, here are the approximate 2026 property tax rates in the Greater Moncton area:
| Municipality | Owner-Occupied Rate (per $100 assessed value) | Non-Owner-Occupied Rate (per $100 assessed value) |
|---|---|---|
| Moncton | Local rate only (~$1.6471) | Local + provincial rate |
| Dieppe | Local rate only (~$1.5100) | Local + provincial rate |
| Riverview | Local rate only (~$1.5665) | Local + provincial rate |
Note: Rates change annually. Always verify current rates with Service New Brunswick or your real estate lawyer before closing.
In 2022, New Brunswick accelerated a significant reform: the provincial property tax rate for non-owner-occupied residential properties was cut by 50% from 2021 levels. This was a major positive shift for investors and seasonal property owners, making NB’s non-resident tax burden considerably more competitive than it was just a few years ago.
Additionally, in 2025, NB passed legislation freezing assessed values at 2025 levels for one year as part of an ongoing property tax overhaul — providing some predictability for all property owners while the province works on longer-term reforms.
Land Transfer Tax: same for everyone
Unlike Ontario or BC, which layer on additional non-resident speculation taxes at the point of purchase, New Brunswick keeps it simple: a flat 1% Land Transfer Tax on the greater of the purchase price or the assessed value — for all buyers, regardless of where you live.
On a $400,000 home, that’s $4,000 at closing. No additional surcharge for out-of-province buyers, no foreign buyer transfer tax at the provincial level.
There are no first-time buyer rebates in New Brunswick, and no residency-status exemptions for the Land Transfer Tax.
Canada’s federal foreign buyer ban — does it apply in New Brunswick?
This is the question I’ve fielded most in the past two years. Here’s the clear answer:
Canada’s Prohibition on the Purchase of Residential Property by Non-Canadians Act came into effect on January 1, 2023, and has been extended to January 1, 2027. It restricts non-Canadians (foreign nationals who are not permanent residents) from purchasing residential property in census metropolitan areas (CMAs) and census agglomerations (CAs).
Moncton, Fredericton, and Saint John are all CMAs or CAs — so the ban does apply to foreign buyers looking at most urban residential properties in these areas.
However, there are meaningful exemptions:
- Permanent residents of Canada are fully exempt — the ban does not apply to you at all.
- Work permit holders with at least 183 days remaining on their permit may purchase one residential property in Canada.
- Properties with four or more dwelling units are exempt regardless of location.
- Rural areas outside CMAs/CAs are generally exempt from the ban, making NB’s countryside and recreational properties more accessible to foreign buyers.
- Purchases for development purposes are also exempt.
- Non-Canadians purchasing with a Canadian citizen or permanent resident spouse are exempt.
Critically: out-of-province Canadians face no restrictions under this Act. If you’re moving from Ontario, Alberta, or BC, you can buy freely in New Brunswick regardless of the federal ban.
Violations of the ban carry penalties of up to $10,000 and potential forced resale of the property. Always confirm your eligibility with a Canadian real estate lawyer before proceeding.
If you’re a non-resident of Canada: tax rules when you sell
This is the piece most non-Canadian buyers don’t learn about until they’re ready to sell — and it can create cash-flow surprises if you’re not prepared.
Under the federal Income Tax Act, when a non-resident of Canada sells Canadian real estate, the buyer’s lawyer is required to withhold 25% of the gross sale proceeds (or 50% on certain property types) and remit it to the CRA. This withholding is held as a deposit against any taxes owing on the gain.
To avoid having a large portion of your sale proceeds frozen at closing, non-resident sellers can apply in advance to the CRA for a Clearance Certificate (Form T2062). This certificate confirms the CRA’s agreement on the estimated tax owing, allowing the lawyer to release funds above that amount to the seller.
If you’re renting out your NB property as a non-resident of Canada, you’re also required to remit 25% of gross rental income to the CRA monthly, or file a Section 216 election annually and pay tax on the net rental income instead. Working with a Canadian accountant from day one is strongly recommended.
What this means for different buyer types
Ontario/Alberta/BC buyer relocating to Moncton
No federal restrictions, no additional provincial surcharge. You pay the same 1% Land Transfer Tax as a local buyer. If you’ll be living in the home as your primary residence, you pay only the local municipal property tax rate — identical to your neighbours. This is one of the simplest and most affordable purchase scenarios in Canada right now.
Ontario buyer buying a cottage or investment property (not owner-occupied)
No foreign buyer ban issue — you’re a Canadian buying freely. Your annual property tax will include both the provincial and local rates (higher than owner-occupied), but NB’s rates are still well below what you’d pay for a comparable cottage in Ontario or Nova Scotia.
American buyer or other non-Canadian
Check whether the specific property falls inside or outside a CMA/CA — this determines whether the federal ban applies. Many rural and recreational properties in NB are outside the ban’s scope. If purchasing within Moncton, Fredericton, or Saint John, you’ll need to meet one of the exemptions (work permit, 4+ units, development, etc.) or wait until the ban expires in January 2027. Work with both a local REALTOR® and a Canadian real estate lawyer from the outset.
Permanent resident of Canada
Fully exempt from the foreign buyer ban. You’re treated exactly the same as a Canadian citizen under this legislation. No additional taxes or restrictions apply at the point of purchase in NB.
The bottom line for non-residents considering Moncton
Compared to Ontario, BC, or even Nova Scotia (which briefly proposed a 2% annual non-resident surcharge before withdrawing it), New Brunswick remains one of the most welcoming and financially accessible provinces for out-of-province and international buyers. There’s no provincial non-resident speculation tax, the Land Transfer Tax is a flat 1% for everyone, and recent provincial reforms have meaningfully reduced the ongoing cost of owning a non-owner-occupied property here.
The federal foreign buyer ban is real and applies to Moncton’s urban residential market — but it has significant carve-outs, and it expires in January 2027. For Canadians from other provinces, there are no barriers at all.
If you have questions about buying in the Greater Moncton area — whether you’re moving here full-time, buying a rental, or exploring the market from a distance — I’m happy to walk through the numbers with you.
Questions about buying in Moncton from out of province?
I’ve helped buyers from Ontario, Alberta, and abroad navigate the Greater Moncton market. Let’s talk through your situation — no obligation, just clear answers.
Richard Wontorra, REALTOR®
3 Percent Realty Atlantic Inc.
506-802-8805 · Richard@Wontorra.com
1888 Mountain Road, Suite 2, Moncton, NB E1G 1A9
This post is for informational purposes only and does not constitute legal or tax advice. Tax rules change regularly — always consult a qualified Canadian real estate lawyer and accountant before purchasing property in New Brunswick.
Frequently asked questions
Do non-residents pay more property tax in New Brunswick?
Yes. Properties that are not owner-occupied pay both the provincial and local property tax rates. Owner-occupied homes pay only the local rate. NB reduced its provincial non-owner-occupied rate by 50% in 2022/2023, making the gap smaller than it once was — but non-owner-occupied properties do still carry a higher annual tax bill.
Can foreigners or Americans buy property in New Brunswick in 2026?
Canada’s foreign buyer ban applies to CMAs and CAs (including Moncton) until January 1, 2027. However, permanent residents are fully exempt, work permit holders with 183+ days remaining can buy one property, and rural/recreational properties outside these areas are generally not affected. Out-of-province Canadians are not subject to the ban at all.
What is the Land Transfer Tax in New Brunswick for non-residents?
A flat 1% on the greater of the purchase price or assessed value — same for everyone, no additional surcharge for non-residents. On a $400,000 purchase, that’s $4,000.
Do non-residents of Canada have to withhold tax when selling NB property?
Yes — buyers’ lawyers must withhold 25% of gross sale proceeds from a non-resident vendor, unless the vendor has obtained a CRA Clearance Certificate (Form T2062) in advance. Non-resident sellers should engage a Canadian accountant early in the selling process.
Is New Brunswick subject to the foreign buyer ban?
The ban applies to properties within census metropolitan areas and census agglomerations — which include Moncton, Fredericton, and Saint John. Rural areas and properties with 4+ units are generally outside the ban. Confirm the specific property’s status with a local lawyer.
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