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Explain the sales tax on vehicle purchases in NL?
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Car Loan Glossary • nl

Explain the sales tax on vehicle purchases in NL?

In Newfoundland and Labrador (NL), the sales tax on vehicle purchases is primarily 15% Harmonized Sales Tax (HST). This 15% HST is applied to the full purchase price of all new vehicles and used vehicles acquired from a licensed dealership. A key provincial nuance arises with private vehicle sales: while HST does not apply to transactions between private individuals, the province levies a separate provincial transfer tax, also at a rate of 15%, on the purchase price or appraised value (whichever is greater) when the vehicle's ownership is transferred and registered with Motor Registration. This means that, regardless of whether you purchase new, used from a dealer, or used privately, consumers in NL will generally incur a 15% tax on the vehicle's value, though the specific tax legislation differs for private transactions.

Understanding these distinctions is crucial for consumers to accurately budget and compare purchasing options. For instance, when trading in a vehicle at a

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Related Topics: nl province taxes

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