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

In Nunavut (NU), the sales tax on vehicle purchases is exclusively the federal Goods and Services Tax (GST), applied at a rate of 5%. Unlike most other Canadian provinces and territories, Nunavut does not impose a provincial sales tax (PST) or participate in the Harmonized Sales Tax (HST) system. This means that when you purchase a vehicle in NU, whether it's a new model or a used vehicle, from a GST-registered dealership or business, you will only be subject to the 5% GST on the agreed-upon purchase price.

This distinct tax framework in Nunavut is significant for consumers, as it results in a lower overall sales tax burden compared to regions that combine GST with a provincial sales tax or charge a higher HST rate. For example, a $40,000 vehicle purchase would incur an additional $2,000 in GST, bringing the total pre-registration cost to $42,000. It is essential for buyers to always confirm the final price with their dealer, ensuring clarity on all applicable charges. While private sales between individuals typically do not involve GST, any vehicle purchased from a licensed dealer or business will include this federal tax, which remains a consistent charge across the territory under current Canadian regulations.

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