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What is the sales tax on vehicle purchases in NS?
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Car Loan Glossary • ns

What is the sales tax on vehicle purchases in NS?

In Nova Scotia, the sales tax on vehicle purchases is a Harmonized Sales Tax (HST) of 15%. This rate applies uniformly to both new vehicles and used vehicles purchased from a licensed automotive dealer. The 15% HST is composed of a 5% federal component (GST) and a 10% provincial component (PST).

For private vehicle sales between individuals, the tax application differs. While the 5% federal GST component is not collected, the provincial portion of the tax, equivalent to 10% of the vehicle's purchase price or its wholesale value (whichever is greater), is typically paid at the Registry of Motor Vehicles when the vehicle is registered in the new owner's name.

Understanding this is crucial for consumers, as this significant tax amount is added to the negotiated purchase price, directly impacting the total cost of the vehicle and, consequently, the financing amount and monthly payments. While specific exemptions or rebates, such as those for qualifying electric vehicles under federal or provincial programs, may apply and reduce the overall cost, the standard 15% HST is a fundamental component of vehicle acquisition costs in Nova Scotia that must be factored into your budget.

References:

Related Topics: ns province taxes

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