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

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

In Nova Scotia, the sales tax on vehicle purchases is the Harmonized Sales Tax (HST), which is currently set at 15%. This rate applies universally to new vehicles and used vehicles purchased from a licensed automotive dealer, combining the 5% federal Goods and Services Tax (GST) with the 10% provincial sales tax component.

When purchasing a used vehicle through a private sale in Nova Scotia, the 10% provincial portion of the sales tax is typically paid to the Registry of Motor Vehicles upon registration. This provincial tax is calculated on the greater of the purchase price or the vehicle's wholesale value, as determined by the province. The 5% federal GST is generally not applicable to private used vehicle sales.

Understanding this distinction is crucial for budgeting, as the sales tax significantly impacts the total cost of ownership and the amount to be financed. While certain new electric vehicles may qualify for federal and provincial rebates, these are applied after the calculation of HST on the purchase price. Additionally, buyers of high-value luxury vehicles should be aware of a separate federal luxury tax that may apply to vehicles exceeding a specific price threshold, further impacting the total cost.

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Related Topics: ns province taxes

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