The New Brunswick sales tax is a 15 percent Harmonized Sales Tax (HST) applied to most goods and services sold in the province. It combines a 5 percent federal Goods and Services Tax with a 10 percent provincial component, and you see one line on the receipt rather than two.1Government of New Brunswick. Harmonized Sales Tax (HST) The Canada Revenue Agency administers the whole thing on behalf of both governments. The harmonized system has been in place in New Brunswick since April 1, 1997.
What the 15 Percent Applies To
Most everyday purchases carry the full 15 percent. Clothing, electronics, furniture, restaurant meals, and household goods are all standard-rated. Services follow the same rule: gym memberships, phone and internet plans, auto repairs, accounting fees, and legal bills all include HST in the final price.
A few situations are worth knowing before you hand over money.
When you buy a vehicle from a dealer, HST is charged on the price after any trade-in credit. Trade a car worth $10,000 toward a $30,000 vehicle, and you pay HST on $20,000 rather than the full sticker. This works only in arm’s-length transactions where you are not an HST-registered business yourself.
New residential construction is fully taxable. Buying a newly built home, or one that has been substantially renovated, means 15 percent HST is baked into the purchase price. Short-term stays like hotel rooms and campsite rentals are also taxed at the full rate. Long-term residential rent is not.
What’s Tax-Free at the Register
Some things ring up with no provincial tax, or no tax at all. Two mechanisms produce that result, and they aren’t the same.
Zero-Rated Goods
Zero-rated items are technically taxed, just at 0 percent. Nothing is added at the register.
Basic groceries are the biggest category. Staples such as milk, bread, vegetables, meat, fish, eggs, and coffee are zero-rated under Schedule VI of the federal Excise Tax Act.2Department of Justice Canada. Excise Tax Act RSC 1985 c E-15 – Schedule VI, Part III The zero rate does not extend to snack foods, candy, carbonated drinks, alcoholic beverages, or prepared single-serving foods. The line between “basic grocery” and “snack” is drawn in surprising detail in the legislation.
Prescription drugs dispensed by a pharmacist or medical practitioner are zero-rated, and so is insulin.3Department of Justice Canada. Excise Tax Act RSC 1985 c E-15 – Schedule VI, Part I Hearing aids, artificial limbs, wheelchairs, and orthotic devices made to order round out the healthcare-related zero-rated items.4Department of Justice Canada. Excise Tax Act RSC 1985 c E-15 – Schedule VI, Part II
The Book Rebate
New Brunswick removes the 10 percent provincial portion of HST on printed books, audio recordings of books, and scriptures through an automatic point-of-sale rebate. You pay only the 5 percent federal GST on these items, and the retailer applies the rebate on the spot.1Government of New Brunswick. Harmonized Sales Tax (HST)
Note the boundary here: children’s clothing and footwear are not rebated in New Brunswick. That rebate exists in Ontario, Nova Scotia, and Prince Edward Island, but not this province.5Canada Revenue Agency. Point-of-Sale Rebate on Children’s Goods Kids’ clothes and shoes carry the full 15 percent.
Exempt Supplies
Exempt supplies are a separate category. No HST is charged, but the business providing the service can’t recover the HST it paid on its own costs. Some of that hidden tax gets absorbed into the price you eventually pay.
Education is the biggest example. Tuition at universities, public colleges, and vocational schools for courses leading to a diploma, degree, or professional accreditation is exempt, as is elementary and secondary instruction provided by school authorities.6Department of Justice Canada. Excise Tax Act RSC 1985 c E-15 – Schedule V, Part III Most financial services are exempt too, including mortgage interest, insurance premiums, and standard banking fees. Childcare for young children and long-term residential rent also fall in this category.
Credits That Put Money Back in Your Pocket
Two quarterly credits offset the HST for lower-income households in New Brunswick. They arrive as one combined deposit, and neither requires a separate application. Eligibility is set from your income tax return.
Federal GST/HST Credit
For the July 2025 to June 2026 payment period, the maximum annual federal amounts are up to $533 for a single individual, up to $698 for a married or common-law couple, and $184 for each child under 19.7Canada.ca. How Your GST/HST Credit Is Calculated You must be at least 19 and a resident of Canada, although younger people qualify if they have a spouse, common-law partner, or child.8Canada Revenue Agency. Who Is Eligible – GST/HST Credit
Payments in 2026 are scheduled for January 5, April 2, July 3, and October 5.9Canada.ca. Payment Dates – GST/HST Credit
New Brunswick HST Credit
On top of the federal credit, the province pays its own quarterly HST credit to lower-income residents in October, January, April, and July.10Government of New Brunswick. NB HST Credit Frequently Asked Questions The full amount goes to households with family income under $35,000. Maximum yearly figures are:
- Single individual: $300
- Couple with no children: $600
- Couple with one child: $700
- Couple with two children: $800
Single parents receive $600 for their first child, higher than the $300 that goes to a single adult with no dependants. The provincial amount is combined with the federal credit into a single deposit.10Government of New Brunswick. NB HST Credit Frequently Asked Questions
Rebates on New Housing
Buying a newly built home means paying 15 percent HST on the purchase price, but part of it can come back through a rebate. The federal GST new housing rebate is available when you buy, build, or substantially renovate a home for use as your primary residence. The fair market value of the finished home must be under $450,000, and corporations and partnerships are not eligible. When you buy from a builder, Form GST190 is the application.11Canada.ca. GST/HST New Housing Rebate
New Brunswick offers its own rebate as well. For eligible purpose-built rental housing, the province refunds 100 percent of the 10 percent provincial HST portion, which is aimed at developers building new rental units rather than owner-occupants.12Government of New Brunswick. HST Rebate on Eligible Purpose-Built Rental Housing
A Quick Note If You Sell Things
If you run a business or side venture in New Brunswick, the trigger for having to charge HST is $30,000 in gross taxable sales over four consecutive calendar quarters. Below that, you’re a small supplier and registration is optional. Cross it and you must register, start charging the 15 percent, and file returns with the CRA.13Canada.ca. When to Register for and Start Charging the GST/HST If you blow past $30,000 in a single quarter, small supplier status ends immediately before the sale that pushed you over, and HST applies to that sale and every one after.14Canada.ca. Small Suppliers Public service bodies get a higher $50,000 threshold.
Registering also unlocks input tax credits, which let you recover the HST you paid on business purchases.15Canada.ca. Input Tax Credits Businesses that spend heavily on equipment or inventory sometimes register voluntarily below the threshold for that reason.