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What is the sales tax on vehicle purchases in PE?
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Car Loan Glossary • pe

What is the sales tax on vehicle purchases in PE?

In Prince Edward Island (PE), the sales tax on vehicle purchases is a consistent 15% Harmonized Sales Tax (HST). This rate applies universally to both new and used vehicles acquired from licensed dealerships. A key provincial nuance in PE is that the 15% HST also applies to private vehicle sales between individuals, with the tax typically collected by the province at the time of registration by the new owner at Access PEI. Understanding this 15% HST is crucial for consumers, as it significantly impacts the total "out-the-door" cost of a vehicle, often adding thousands of dollars to the purchase price and requiring careful budgeting and consideration for financing. Buyers should always factor this into their financial planning, as the HST is generally financed alongside the vehicle's purchase price. While PEI's rate remains stable, it's notable that neighboring Nova Scotia is set to reduce its HST to 14% effective April 1, 2025, demonstrating the evolving landscape of provincial tax rates within the Canadian market.

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