Sales tax in Newfoundland and Labrador is a single 15% Harmonized Sales Tax that combines the 5% federal Goods and Services Tax with a 10% provincial component into one charge at the register.1Government of Newfoundland and Labrador. Harmonized Sales Tax The Canada Revenue Agency administers it for both governments, so you see one line on your receipt instead of two. The provincial portion rose from 8% to 10% on July 1, 2016, and has held there since.
What You Actually Pay
To find the total on a purchase, multiply the sticker price by 1.15. A $200 appliance costs $230. A $1,500 contractor invoice comes to $1,725. The tax applies to most goods you buy and most services you hire in the province.
Which province’s rate applies depends on where the supply takes place, not where the seller is based. For physical goods, that means wherever the item is delivered. A retailer in Ontario shipping a laptop to your address in St. John’s charges the 15% Newfoundland rate. Drive to a store in another province and pick something up in person, and that province’s rate applies instead.2Canada Revenue Agency. Charge and Collect the GST/HST
What Isn’t Taxed at 15%
Some purchases carry no HST at the cash register. The tax system splits these into two categories, and while the distinction mostly matters for businesses, it helps to know what falls where.
Zero-Rated Items
Zero-rated goods technically carry a 0% rate. Basic groceries such as milk, bread, and vegetables sit in this category, along with prescription drugs and medical devices like hearing aids.3Canada Revenue Agency. Type of Supply – Section: Find Your Supply and Tax Status Among the Examples You pay no tax on them.
Exempt Services
Exempt supplies also carry no HST for you. The main categories are long-term residential rent (one month or more), most health and dental services performed by licensed practitioners, and many educational services delivered through vocational schools and recognized institutions.4Canada Revenue Agency. General Information for GST/HST Registrants – Section: Taxable Supplies The idea is to keep the tax from driving up the cost of housing, healthcare, and education.
The Book Rebate
Newfoundland and Labrador removes the 10% provincial portion of the HST on qualifying books at the point of sale. The retailer charges only the 5% federal GST.5Government of Newfoundland and Labrador. Reinstatement of the General HST Point-of-Sale Book Rebate in Newfoundland and Labrador A $30 novel comes to $31.50 rather than $34.50.
Qualifying items include most printed books and updates, bound and unbound scripture, and audio recordings that are substantially a spoken reading of a printed book. Magazines, newspapers, and periodicals do not qualify. One boundary worth flagging: unlike some other HST provinces such as Ontario and Nova Scotia, Newfoundland and Labrador does not extend a point-of-sale rebate to children’s clothing or children’s footwear.6Canada Revenue Agency. Who Can Apply – GST/HST Rebate – Provincial Point-of-Sale Rebate on Qualifying Items – Section: Qualifying Items Those items carry the full 15% here.
Buying a Used Vehicle From a Private Seller
When you buy a used vehicle from another person rather than a dealership, the sale falls outside the normal HST system. Instead, the province collects a 15% Retail Sales Tax when you register or transfer the vehicle.7Government of Newfoundland and Labrador. Taxation on Private Sale of Vehicles
The province checks your stated price against the Canadian Red Book. If the price on the bill of sale is at or above the average wholesale value listed there, tax is calculated on what you paid. If the stated price is below that wholesale value, you and the seller need to sign an affidavit; without one, Motor Registration calculates the tax on the Red Book value instead. For vehicles with a Red Book wholesale value of $1,200 or less, the tax is simply based on the bill of sale.8Government of Newfoundland and Labrador. Sales Tax on Vehicles The practical takeaway: agreeing to a low price on paper doesn’t necessarily lower your tax bill.
New Home Purchases
Buying or building a new home in the province means paying 15% HST on the purchase price. The federal government offers a partial rebate of the 5% GST portion to soften that.9Canada Revenue Agency. GST/HST New Housing Rebate To qualify, the home has to be your primary residence or that of a close relative, and the fair market value must be under $450,000. The rebate is largest on homes at $350,000 or less and phases out between $350,000 and $450,000. Corporations and partnerships cannot claim it.
The provincial portion has its own separate rules. If you’re buying new construction, ask your builder or check with the CRA about what provincial relief applies to your situation, because the details depend on the type and value of the housing.
The GST/HST Credit for Lower-Income Residents
If your income is on the lower side, the federal government sends you quarterly GST/HST credit payments to help offset the tax you pay on everyday purchases. There’s no separate application. Filing your income tax return determines your eligibility automatically.
For the July 2025 through June 2026 payment period, the maximum annual amounts are:10Canada Revenue Agency. How Your GST/HST Credit Is Calculated
- Single individual: up to $533
- Married or common-law couple: up to $698
- Each child under 19: an additional $184
The credit phases out as income rises, and payments arrive in four quarterly installments. People who don’t file a return miss out, even when they’d qualify.
If You Run a Business
Business owners deal with a separate layer of the same tax. Once your total taxable revenue passes $30,000 over four consecutive calendar quarters, you have to register for a GST/HST account and start charging the tax.11Canada Revenue Agency. When to Register for and Start Charging the GST/HST Below that threshold, you’re considered a small supplier and registration is optional; public service bodies get a higher threshold of $50,000.12Canada Revenue Agency. Small Suppliers – Section: Who Is a Small Supplier
The timing matters. Once a single sale pushes you past $30,000, you have to charge HST on that transaction, not the next one. Some businesses register voluntarily even under the threshold, because registration lets them claim input tax credits to recover the HST they paid on their own supplies and equipment.13Canada Revenue Agency. Input Tax Credits From there, filing frequency, deadlines, and record-keeping obligations all depend on your revenue, and it’s worth working through the CRA’s registrant guide or a bookkeeper before your first filing period closes.