Hst Rates In New Brunswick: What's The Deal?

New Brunswick charges a 15% Harmonized Sales Tax (HST) on most goods and services. This is a combination of a 10% provincial sales tax and a 5% federal sales tax. The HST was adopted in New Brunswick on July 1st, 2010, and the rate was increased from 13% to 15% on July 1st, 2016. The HST applies to most purchases in the province, but there are some exemptions and rebates available, including for basic groceries, prescription drugs, and feminine hygiene products.

HST in New Brunswick was increased from 13% to 15% in 2016

The Canadian province of New Brunswick implemented an increase in its Harmonized Sales Tax (HST) from 13% to 15% on the 1st of July, 2016. This change brought the provincial sales tax in New Brunswick to 10%, combined with the federal Goods and Services Tax (GST) of 5%, resulting in the total HST of 15%.

The HST is a combination of the federal GST and the provincial sales tax, and it is applied to most goods and services purchased in the province. This means that when you buy something in New Brunswick, you will typically pay 15% more than the listed price due to the HST. For example, if you buy a product priced at $100, the HST will add $15, bringing the total cost to $115.

The increase in the HST rate from 13% to 15% in 2016 was a significant change for both consumers and businesses in New Brunswick. Consumers had to adjust their budgets to account for the higher tax, while businesses had to update their pricing and tax calculations. The HST rate change also impacted out-of-province sales, as businesses needed to consider the applicable sales tax rates when selling to customers in other provinces.

It is important to note that not all goods and services in New Brunswick are subject to the full 15% HST rate. There are specific exemptions and zero-rated goods and services. For example, basic groceries, prescription medications, and feminine hygiene products are zero-rated, meaning they are exempt from the 5% federal GST but still subject to the 10% provincial tax. Additionally, certain direct exemptions exist, such as resale residential properties and long-term rental accommodations, which are exempt from the entire 15% HST.

The HST includes a 5% federal tax and a 10% provincial tax

The Harmonized Sales Tax (HST) in New Brunswick is currently 15% and has been since 1 July 2016, when it was raised from 13%. This sales tax is applied to most goods and services purchased in the province. The HST is comprised of a 5% federal tax and a 10% provincial tax.

The federal tax element of the HST is called the Goods and Services Tax (GST). This is a federal sales tax that applies to most goods and services in Canada. The GST was introduced in 1991 and is currently at 5%.

The provincial tax element of the HST is the Provincial Sales Tax (PST). Each province has its own PST, so the HST varies across Canada. The PST in New Brunswick is 10%. This is the same rate as in PEI, Newfoundland and Labrador, Nova Scotia, and Quebec. Ontario's PST is 8%, while in BC and Manitoba it is 7%. Alberta and all three territories do not charge PST.

The HST is calculated by taking the price of a product or service and adding 15%. For example, if you are purchasing a product for $50, the sales tax would be $7.50, making the total cost $57.50.

The HST was adopted in New Brunswick in 2010

The Canadian province of New Brunswick adopted the Harmonized Sales Tax (HST) on July 1, 2010. The HST is a consumption tax that combines the federal Goods and Services Tax (GST) and the regional Provincial Sales Tax (PST) into a single value-added tax. New Brunswick's HST is currently set at 15%, consisting of a 10% provincial sales tax and a 5% federal sales tax. This tax is applied to most goods and services purchased within the province.

The adoption of the HST in New Brunswick was part of a broader initiative to streamline and simplify the sales tax system in Canada. Prior to the introduction of the HST, New Brunswick and other provinces had separate GST and PST taxes, which were combined into a single HST to reduce complexity and improve competitiveness for Canadian businesses. The HST also replaced the previous cascading tax system with a value-added tax structure, which is more in line with international economic practices.

While the HST applies to most transactions in New Brunswick, there are certain exemptions and rebates available. For example, basic groceries, prescription drugs, and feminine hygiene products are exempt from the federal portion of the HST. Additionally, registered First Nations individuals are granted rebates on both the provincial and federal portions of the HST for goods and services purchased and used on reserves.

The HST rate in New Brunswick has not always been at 15%. Between 2010 and 2016, the HST rate was 13%, with an 8% provincial portion and a 5% federal portion. On July 1, 2016, the provincial government increased the HST rate to 15% by raising the provincial portion to 10%. This change brought New Brunswick's HST rate in line with other provinces such as Nova Scotia and Newfoundland and Labrador.

Most goods and services are subject to the HST

The Harmonized Sales Tax (HST) in New Brunswick is currently 15%, a combination of the 5% federal Goods and Services Tax (GST) and the 10% provincial sales tax. This rate was increased from 13% on the 1st of July 2016. The HST has been applied in the province since the 1st of April 1997, and it applies to most goods and services.

There are some exemptions and rebates to the HST, which apply to both the federal and provincial portions of the tax. These include basic groceries (with the exception of snacks, carbonated drinks, and liquor), prescription medication, feminine hygiene products, residential resales of previously owned property, and long-term rental accommodations. Educational services leading to a certificate or diploma or required for a specific practice, as well as medical and dental services, are also exempt.

Registered First Nations communities are granted rebates on both the federal and provincial portions of the HST for products and services bought and used on reserves.

When calculating the HST on goods and services in New Brunswick, simply add 15% to the price of the product or service. For example, if you are purchasing a product for $50, the sales tax would be $7.50, making the total cost $57.50.

There are some exemptions and rebates to the HST

The Harmonized Sales Tax (HST) in New Brunswick is made up of a 10% provincial sales tax and a 5% federal sales tax, totalling 15%. While the HST is applied to most goods and services, there are some exemptions and rebates.

Exemptions

There are two types of exemptions: direct exemptions and zero-rated goods and services. The difference lies in how businesses handle the costs, but as a consumer, you would not have to pay HST on items from either category.

Goods and services that are zero-rated from the federal portion of the HST include:

• Basic groceries (excluding snacks, carbonated drinks, and liquor)
• Prescription medication (excluding over-the-counter drugs)
• Feminine hygiene products

Goods and services that are directly exempt from the federal portion of the HST include:

• Residential resales of previously owned and used property
• Rental accommodations for longer than a month
• Educational services leading to a certificate or diploma or required for a specific practice
• Medical and dental services
• Financial services, such as bank fees

Rebates

Registered First Nations are granted rebates on both the provincial and federal portions of the HST for products and services bought and used on reserves.

The Province of New Brunswick also provides rebates on the 10% provincial component of the HST in the following cases:

• Printed books, audio recordings, and scriptures are taxed at the federal rate of 5% with a point-of-sale rebate for the 10% provincial component.
• The Province refunds the 10% provincial component of the HST on supplies of property and services used directly in research and development by a university.
• The Province refunds the 10% provincial component of the HST on specially equipped vehicles for wheelchair or scooter users, or those with auxiliary driving controls.

Frequently asked questions