Key Takeaways
- 1.New Brunswick's HST is 15% (5% federal + 10% provincial) — the same rate as Nova Scotia and PEI, so cross-border Maritime shopping offers no sales tax savings.
- 2.Basic groceries are zero-rated (0% HST) — but prepared foods, snacks, candy, and restaurant meals are taxed at the full 15%.
- 3.The NB new-housing HST rebate returns up to $7,875 of the provincial HST on new homes priced at or below $350,000.
- 4.The NB Low-Income Tax Reduction provides up to $721 in provincial tax relief for individuals earning under approximately $22,000.
- 5.Shopping in Maine means paying 5.5% US sales tax at the register, plus potential Canadian customs duties and HST on goods exceeding your personal exemption at the border.
How New Brunswick's 15% HST Works
New Brunswick adopted the Harmonized Sales Tax in 1997, merging the former 11% provincial sales tax with the 7% federal GST into a single 15% tax. The provincial component was later reduced to 8% (making HST 13%), then raised back to 10% on July 1, 2016, bringing the rate to 15% where it stands today. Unlike Quebec, which runs a separate provincial sales tax (QST) alongside federal GST, New Brunswick collects a single harmonized tax — one line on every receipt.
For newcomers arriving from Alberta (5% GST only), this means a 10 percentage-point increase on nearly every taxable purchase. From Ontario (13% HST), the jump is 2 points. From Quebec (approximately 14.975% combined GST + QST), the effective difference is negligible. Understanding where NB's rate sits relative to where you came from is the first step in adjusting your household budget.
Worked Example 1: $200 Grocery Cart — What's Exempt
The most common question newcomers ask is whether groceries are taxed. The answer: basic groceries are zero-rated, meaning HST is charged at 0%. But the line between "basic" and "taxable" catches many people off guard.
| Item | Price | HST Status | HST Charged |
|---|---|---|---|
| Fresh chicken (1.5 kg) | $18.00 | Zero-rated | $0.00 |
| Milk (4 L) | $6.50 | Zero-rated | $0.00 |
| Rice (2 kg bag) | $7.00 | Zero-rated | $0.00 |
| Eggs (dozen) | $5.00 | Zero-rated | $0.00 |
| Fresh vegetables | $22.00 | Zero-rated | $0.00 |
| Bread (2 loaves) | $8.00 | Zero-rated | $0.00 |
| Canned beans & tomatoes | $12.00 | Zero-rated | $0.00 |
| Chips & snack crackers | $14.00 | Taxable (15%) | $2.10 |
| Carbonated drinks (case) | $12.00 | Taxable (15%) | $1.80 |
| Rotisserie chicken (prepared) | $13.00 | Taxable (15%) | $1.95 |
| Paper towels & cleaning supplies | $18.00 | Taxable (15%) | $2.70 |
| Candy & chocolate bars | $9.00 | Taxable (15%) | $1.35 |
| Diapers | $28.00 | Zero-rated | $0.00 |
| Shampoo & toothpaste | $15.00 | Taxable (15%) | $2.25 |
| Total | $187.50 | $12.15 |
On a $187.50 grocery run, only $81 worth of items attracted HST — the snacks, prepared food, pop, cleaning products, and personal care items. The $12.15 in tax represents an effective rate of 6.5% on the total cart, not 15%. The basic groceries that make up $106.50 of the bill — meat, dairy, produce, bread, eggs, canned goods, and diapers — are zero-rated. This distinction is federal, not provincial, so it applies identically in every HST province.
Newcomer tip: If you're arriving from a country without sales tax built into shelf prices, remember that Canadian prices displayed on shelves do not include HST. The tax is added at the register. Budget accordingly — on fully taxable purchases, the price you pay is 15% more than the sticker price.
Worked Example 2: $30,000 Car Purchase
Vehicles are fully taxable under HST in New Brunswick. Whether you buy from a dealership or a private seller, the 15% rate applies to the purchase price of a new vehicle. For private sales of used vehicles, the province applies HST based on the greater of the sale price or the Canadian Red Book value.
| Line Item | Amount |
|---|---|
| Vehicle price | $30,000.00 |
| HST (15%) | $4,500.00 |
| Federal GST portion (5%) | $1,500.00 |
| NB provincial portion (10%) | $3,000.00 |
| Total cost | $34,500.00 |
A $30,000 vehicle costs $34,500 after HST. Compare this to the same purchase in Alberta, where only 5% GST applies — $31,500 total, a $3,000 savings. This is the single largest line-item difference newcomers from western provinces notice immediately.
For a broader look at how provincial tax differences compound across income levels, our Alberta vs Ontario Income Tax Comparison breaks down the gap at $80K, $120K, and $200K salaries.
Worked Example 3: $15,000 Home Renovation Contract
Home renovation services — kitchen remodels, bathroom upgrades, deck builds — are fully taxable under HST. Labour and materials are both subject to the 15% rate when performed by a registered contractor.
| Line Item | Amount |
|---|---|
| Contract price (labour + materials) | $15,000.00 |
| HST (15%) | $2,250.00 |
| Federal GST portion (5%) | $750.00 |
| NB provincial portion (10%) | $1,500.00 |
| Total cost | $17,250.00 |
The $2,250 HST on a $15,000 renovation is not recoverable for homeowners — only HST-registered businesses can claim input tax credits. If you are renovating a rental property, you may be able to claim the HST through your business return, but a personal residence renovation is a final cost.
For service providers navigating similar tax obligations in Saskatchewan, our Saskatchewan PST on Services Guide covers how the 6% PST applies to legal, accounting, and SaaS invoices.
The New Brunswick New-Housing HST Rebate
Newcomers buying a newly built home in New Brunswick can recover a significant portion of the HST through the new-housing rebate. The rebate has two components — provincial and federal — that work independently.
Provincial Rebate (NB Portion)
New Brunswick rebates 22.5% of the provincial HST component (10%) on new homes. For a home priced at or below $350,000, the rebate calculation is straightforward:
| Home Price | NB HST (10%) | NB Rebate (22.5%) | Net NB HST |
|---|---|---|---|
| $200,000 | $20,000 | $4,500 | $15,500 |
| $275,000 | $27,500 | $6,187.50 | $21,312.50 |
| $340,000 | $34,000 | $7,650 | $26,350 |
| $350,000 | $35,000 | $7,875 | $27,125 |
The maximum NB provincial rebate is $7,875 on a $350,000 home. Unlike the federal rebate, the NB provincial rebate does not phase out between $350,000 and $450,000 — it is simply unavailable for homes priced above $350,000.
Federal Rebate (GST Portion)
The federal new-housing GST rebate returns 36% of the 5% GST portion, up to a maximum of $6,300. It applies fully to homes priced at or below $350,000 and phases out linearly between $350,000 and $450,000. At $450,000 and above, there is no federal rebate.
Combined Rebate on a $340,000 New Home
| Line Item | Amount |
|---|---|
| Home price | $340,000.00 |
| Total HST (15%) | $51,000.00 |
| NB provincial rebate (22.5% of $34,000) | −$7,650.00 |
| Federal GST rebate (36% of $17,000) | −$6,120.00 |
| Net HST after rebates | $37,230.00 |
| Total cost including net HST | $377,230.00 |
On a $340,000 new home, the combined rebates return $13,770, reducing the effective HST rate from 15% to approximately 10.95%. This is a meaningful saving for newcomers purchasing their first home in the province.
NB Low-Income Tax Reduction
New Brunswick provides a provincial Low-Income Tax Reduction to residents with modest incomes. For 2025, the base reduction is approximately $721, with an additional $351 for each dependant. The reduction is clawed back at 5% of net income above approximately $17,400.
For a single newcomer earning $20,000 in their first year, the calculation works like this:
| Component | Amount |
|---|---|
| Base reduction | $721.00 |
| Clawback: 5% × ($20,000 − $17,400) | −$130.00 |
| Net reduction | $591.00 |
This $591 reduction is applied against NB provincial income tax payable. Combined with the federal GST/HST credit (which provides quarterly payments to low- and modest-income individuals), newcomers in their first year of lower earnings receive meaningful offset against the province's 15% HST.
Newcomers building their financial foundation in Canada may also find our Newcomer to Canada Net Worth Calculator useful for mapping a path from $0 to $250K over the first seven years.
Cross-Border Shopping: Quebec and Maine
New Brunswick shares a border with Quebec to the north and Maine (USA) to the west and south. Both create cross-border shopping dynamics that newcomers should understand.
Shopping in Quebec
When you drive to Edmundston's neighbouring Quebec towns or shop in Rivière-du-Loup, you pay Quebec's tax regime: 5% GST + 9.975% QST, for a combined rate of approximately 14.975%. That's marginally lower than NB's 15% HST, but the savings are negligible — about $0.25 per $1,000 of spending. Factor in fuel costs and the trip is almost never worth it for tax savings alone.
For a detailed breakdown of how Quebec's QST system works for businesses and consumers, see our Quebec QST + GST Calculator.
Shopping in Maine (USA)
Maine charges a 5.5% state sales tax — significantly lower than NB's 15%. A $500 purchase in Houlton or Calais costs $527.50 including Maine tax, versus $575 in New Brunswick. That's $47.50 in savings before border costs.
However, when you return to Canada, you must declare goods to the Canada Border Services Agency (CBSA). Personal exemptions apply:
- 24 hours or more: up to $200 CAD exemption (no duties or taxes)
- 48 hours or more: up to $800 CAD exemption
- 7 days or more: up to $800 CAD exemption plus additional alcohol and tobacco allowances
Goods exceeding the exemption are subject to applicable Canadian customs duties plus 15% HST on the duty-inclusive value. For large purchases (electronics, furniture), the 15% HST at the border can erase the Maine tax advantage entirely. Cross-border shopping works best for small, frequent trips that stay under the $200 exemption threshold.
NB's 15% HST vs. Neighbouring Provinces
One of the most common questions from newcomers considering where to settle in Atlantic Canada: does the HST rate vary between Maritime provinces?
| Province | HST Rate | Top Combined Income Tax | Top Rate Threshold |
|---|---|---|---|
| New Brunswick | 15% | 52.50% | $185,064 |
| Nova Scotia | 15% | 54.00% | $150,000 |
| Prince Edward Island | 15% | 51.75% | $140,000 |
The HST rate is identical across all three provinces. The real tax differentiator is income tax. Nova Scotia's 54% combined top rate — the highest in Canada for typical high earners — kicks in at just $150,000. NB's 52.50% rate starts higher at $185,064, while PEI's 51.75% begins at $140,000. For a newcomer earning $175,000, PEI and Nova Scotia both impose their top provincial rate, while New Brunswick does not.
For the full breakdown on Nova Scotia's bracket structure and why it leads all provinces on marginal rates, see our Nova Scotia Income Tax 2025 Analysis.
What Newcomers Should Do First
If you have recently moved to New Brunswick — whether from another province or from outside Canada — here are the tax-related steps that matter most:
- Apply for the GST/HST credit. File your first Canadian tax return (or Form RC151 for new residents) to start receiving quarterly GST/HST credit payments. For 2025, a single individual can receive up to approximately $519 annually.
- Understand what's zero-rated. Basic groceries, prescription drugs, and certain medical devices carry no HST. Structure your spending to prioritize basic staples over prepared and convenience foods to minimize your effective tax rate.
- Budget 15% on top of sticker prices. Unlike some countries where tax is included in the displayed price, Canadian prices exclude sales tax. Every non-exempt purchase costs 15% more than the shelf tag.
- Claim the new-housing rebate if buying new. If purchasing a newly constructed home under $350,000, file for both the NB provincial rebate (up to $7,875) and the federal GST rebate (up to $6,300). Your builder can often process these at closing.
- File for the NB Low-Income Tax Reduction. If your first-year income is below $22,000, you qualify for up to $721 in provincial tax relief (plus $351 per dependant), which is calculated automatically when you file your NB tax return.
Important Disclaimer
This article provides general information based on New Brunswick HST rates, the federal GST/HST framework, and NB provincial tax provisions as published by the Canada Revenue Agency and the New Brunswick Department of Finance for the 2025 tax year. Zero-rating rules, rebate amounts, personal exemption thresholds, and Low-Income Tax Reduction figures are simplified for illustrative purposes. Individual outcomes depend on filing status, immigration date, residency status, and income sources not modelled here. Cross-border shopping rules are subject to CBSA enforcement and exemption limits that may change. Always consult a qualified tax professional before making financial decisions based on this article. This is not legal, tax, or financial advice.