What is the sales tax on vehicle purchases in NB in Canada?

In New Brunswick, the sales tax on vehicle purchases, whether new or used, is consistently 15% Harmonized Sales Tax (HST). This tax is applied to the agreed-upon purchase price of the vehicle. For transactions conducted through licensed dealerships, the HST is collected directly by the dealer at the time of sale. If you are purchasing a used vehicle in a private sale, you are still responsible for paying the 15% HST to Service New Brunswick when you register the vehicle; in these cases, the tax is typically calculated on the greater of the purchase price or the vehicle's wholesale value, as determined by the provincial government, to ensure fair taxation.

Understanding this 15% HST is crucial for budgeting, as it represents a significant addition to the total out-the-door cost of your vehicle. While certain government rebates, particularly for electric vehicles, can reduce the overall expense, the HST is generally applied to the purchase price *before* any such rebates are factored in. This ensures consumers are fully aware of the true cost of ownership from the outset and can plan their finances accordingly. As a point of regional comparison within Atlantic Canada, it's worth noting that Nova Scotia's HST rate on vehicle purchases is set to reduce from 15% to 14% effective April 1, 2025, underscoring the importance of confirming provincial rates at the time of purchase.