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What is the sales tax on vehicle purchases in NT?
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Car Loan Glossary • nt

What is the sales tax on vehicle purchases in NT?

In the Northwest Territories (NT), the sales tax on vehicle purchases is exclusively the federal Goods and Services Tax (GST). Unlike many other Canadian provinces and territories, NT does not levy a provincial sales tax (PST) or a harmonized sales tax (HST) component on top of the GST. Therefore, consumers purchasing a vehicle in NT can expect to pay only 5% GST on the purchase price. This 5% GST applies to both new and used vehicles when purchased from a GST-registered dealership. For private vehicle sales between individuals, GST typically does not apply, as private sellers are generally not GST registrants. Understanding this is crucial for consumers, as the 5% GST significantly contributes to the total cost of the vehicle, directly impacting down payment requirements, loan amounts, and overall budgeting for their purchase. It's always advisable for buyers to confirm the exact tax implications with their dealer or a financial advisor to ensure accurate calculations for their specific transaction.

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