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

In Prince Edward Island (PE), the sales tax applied to vehicle purchases is the Harmonized Sales Tax (HST) at a rate of 15%. This 15% HST is a combined federal and provincial tax, encompassing the 5% federal Goods and Services Tax (GST) and a 10% provincial component. This rate applies uniformly to both new and used vehicles purchased from licensed dealerships. For private vehicle sales, the purchaser is also generally required to pay the 15% HST on the purchase price or the vehicle's wholesale value (whichever is greater) when registering the vehicle at Access PEI. Understanding this 15% tax is critical for consumers, as it represents a substantial additional cost that directly impacts the total purchase price, financing amount, and overall budget for their vehicle. While the 15% HST is standard, buyers should always investigate potential provincial or federal rebates, such as those for electric vehicles, which can help offset the total cost of ownership, though these are typically applied after the sales tax calculation. This consistent application of HST across PE ensures a clear and predictable tax environment for all vehicle transactions.

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