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Explain the sales tax on vehicle purchases in NB?
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Car Loan Glossary • nb

Explain the sales tax on vehicle purchases in NB?

In New Brunswick, the sales tax on vehicle purchases is the Harmonized Sales Tax (HST) at a rate of 15%. This 15% HST applies consistently to both new vehicles acquired from a licensed dealership and used vehicles, regardless of whether they are purchased from a dealer or through a private sale between individuals. A key provincial nuance in NB is that, unlike some other Canadian jurisdictions, private used vehicle sales are indeed subject to the full 15% HST. This means consumers must always factor in a significant 15% addition to the agreed-upon purchase price when budgeting for a vehicle in the province. For new vehicle purchases from a dealer, the HST is typically calculated on the net price after any trade-in allowance, which can offer some tax savings. However, for used vehicles, whether from a dealer or private seller, the tax is applied to the full purchase price. Understanding this comprehensive application of HST is crucial for accurate financial planning and to avoid unexpected costs, ensuring buyers are fully aware of the total 'out-the-door' expenditure for their vehicle in New Brunswick.

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Related Topics: nb province taxes

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