Car Loan Glossary nb

What is 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 comprehensively to both new vehicles purchased from licensed dealerships and used vehicles acquired through a dealer.

A critical provincial nuance in New Brunswick, unlike some other Canadian provinces, is that this 15% HST also applies to private sales of used vehicles. In such private transactions, the tax is calculated on the greater of the actual purchase price or the vehicle's wholesale value, as determined by provincial guidelines, to ensure equitable taxation and prevent undervaluation. This broad application of the 15% HST significantly impacts the total cost of the vehicle, directly affecting the amount a consumer needs to finance and their subsequent monthly payments. While specific provincial or federal rebates for certain vehicle types, like electric vehicles, may be available, the 15% HST is generally applied to the full purchase price before any rebates are factored in. Therefore, understanding this consistent 15% HST rate and its wide applicability across all vehicle transaction types in New Brunswick is essential for accurate financial planning and budgeting for any prospective buyer.
Related Topics: nb province taxes

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