Newfoundland and Labrador Sales Tax (HST) Calculator 2024
Sales Taxes in Newfoundland and Labrador
Newfoundland and Labrador is one of the provinces in Canada that charges a Harmonized Sales Tax (HST) of 15%. The HST is applied to most goods and services, although there are some categories that are exempt or rebated from the HST.
The HST was adopted in Newfoundland and Labrador on July 1st, 1997. The HST is made up of two components: an 10% provincial sales tax and a 5% federal sales tax. It increased from 13% to 15% in 2016.
Sales Taxes Across Canada for $1,000
Newfoundland and Labrador Rebates and Exemptions to the HST
Most exemptions and rebates to the federal 5% portion of the HST also apply to the provincial 10% portion. There are also categories of goods and services that are not charged the provincial portion of HST. These rebates and exemptions are separate from the ones granted on a national level.
These categories include:
- Books, including audiobooks
Newfoundland and Labrador First Nations and HST
Registered First Nations are granted rebates on both the provincial and federal portions of the HST for products and services bought and used on reserve in Newfoundland and Labrador. See the Government of Canada's website’s GST/HST and First Nations peoples page for more information.
Newfoundland and Labrador Rebates and Exemptions to the Federal Portion of the HST
There are two types of exemptions for HST: direct exemptions and zero-rated goods and services. The difference is related to how businesses handle costs related to the exemptions, but as a consumer, you would not have to pay HST on items from either category.
- Basic groceries, including meats, fish, cereals, dairy products, eggs, vegetables, coffee, tea. Some foods including snack foods, liquor, and carbonated beverages are charged HST.
- Prescription drugs, but not any drugs available over-the-counter (OTC).
- Medical devices
- Feminine hygiene products
Goods and services that are zero-rated from the federal portion of the HST include:
- Residential resales of property that has been previously owned and used
- Rental accommodations of longer than a month
- Educational services that lead to a certificate or diploma or are required for a certain practice
- Medical and dental services
- Financial services such as bank fees
- Legal aid services
- Day-care services
Goods and services that are directly exempt from the federal portion of the HST include:
Federal Revenues from Sales Taxes
Sales taxes account for a notable portion of the federal government’s revenue. In the fiscal year 2023, the 5% GST (Goods and Services Tax) is estimated to have brought $54.4 billion in revenue, amounting to 11.9% of the total Canadian government revenue.