New Brunswick Sales Tax Rate History
New Brunswick was one of the three original Atlantic provinces to adopt the Harmonized Sales Tax in April 1997, replacing a separate GST and provincial sales tax structure that had been in place since 1991. Since harmonization, NB has had three distinct HST rates, with the most recent change occurring in July 2016. This page documents every major rate milestone and the reverse-calculation formulas that apply in each period.
Rate Milestones
| Effective Date | Tax | Rate | Notes |
|---|---|---|---|
| Jan 1, 1991 | GST | 7% | GST introduced federally, replacing Manufacturers' Sales Tax (MST) |
| Jan 1, 1991 | NB PST | 11% | Provincial Sales Tax alongside GST |
| Apr 1, 1997 | HST | 15% | GST (7%) + NB PST (8%) harmonized; one of three original HST provinces |
| Jul 1, 2006 | HST | 14% | Federal GST component reduced from 7% to 6% |
| Jan 1, 2008 | HST | 13% | Federal GST component reduced from 6% to 5% |
| Jul 1, 2016 | HST | 15% | Provincial component increased from 8% to 10% |
✓ Rates verified
Historical Context
1991: GST and New Brunswick PST
When the federal Goods and Services Tax replaced the Manufacturers' Sales Tax on January 1, 1991, New Brunswick retained its own Provincial Sales Tax at 11% alongside the new 7% federal GST. The pre-HST combined burden — 7% GST plus 11% PST — was 18% on most taxable goods, though the two taxes had separate bases, exemptions, and filing requirements. The NB PST was administered provincially while the GST was administered by the Canada Revenue Agency.
1997: Original HST Adoption
On April 1, 1997, New Brunswick became one of the three original HST provinces alongside Nova Scotia and Newfoundland and Labrador. The harmonization set the provincial component of HST at 8% — lower than the pre-existing 11% PST — combined with the 7% federal GST for a total HST rate of 15%. The reduction in the provincial component from 11% to 8% effectively lowered the tax rate on many goods that had previously attracted the full 11% PST, though some services previously exempt from PST became subject to HST. All HST administration moved to the Canada Revenue Agency, eliminating the separate provincial return.
2006–2008: Federal GST Reductions
The federal GST component within HST was reduced by one percentage point on July 1, 2006 (total HST fell from 15% to 14%) and again on January 1, 2008 (from 14% to 13%). New Brunswick's provincial component remained at 8% throughout; only the federal portion changed. These reductions were applied uniformly across all HST provinces.
2016: Provincial Component Increase
On July 1, 2016, New Brunswick raised the provincial component of HST from 8% to 10%, bringing the total rate from 13% to 15%. The increase was announced in the province's February 2016 budget under Premier Brian Gallant's Liberal government as a measure to address a significant provincial deficit. New Brunswick and Newfoundland and Labrador increased their HST rates simultaneously, both moving to 15% on the same effective date. This was the first New Brunswick provincial HST change since harmonization in 1997.
Reverse Calculation by Era
When working backwards from a gross total to extract the pre-tax amount, the divisor depends on which rate was in effect at the time of the transaction. Note that the pre-1997 combined rate of 18% (7% GST + 11% PST) was substantially higher than the HST rates that followed.
| Era | Tax Structure | Reverse Formula |
|---|---|---|
| 1991–1997 | GST 7% + PST 11% | Pre-tax = Total ÷ 1.18 |
| Apr 1997–Jun 2006 | HST 15% | Pre-tax = Total ÷ 1.15 |
| Jul 2006–Dec 2007 | HST 14% | Pre-tax = Total ÷ 1.14 |
| Jan 2008–Jun 2016 | HST 13% | Pre-tax = Total ÷ 1.13 |
| Jul 2016–present | HST 15% | Pre-tax = Total ÷ 1.15 |
For current transactions, divide by 1.15 to isolate the net pre-tax amount. When auditing pre-1997 transactions, use 1.18 — and note that the 11% PST and 7% GST were separate taxes with different exemption rules, so precise historical filings may require separating the two components individually rather than applying a single combined divisor.
← New Brunswick Province Tax Guide
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Calculations are arithmetic estimations only and do not constitute formal tax or corporate auditing advice. All figures must be verified against current CRA guidelines before filing.