Is HST charged on a house purchase in New Brunswick?
This answer covers the law of New Brunswick.
Whether HST is charged on a house purchase in New Brunswick depends on the type of home and the type of sale, so there is no single answer for every buyer. How HST applies to your purchase depends on the details of your home and your sale, so it is worth confirming with a lawyer or accountant before you sign.
Ask the seller or builder in writing whether HST is included in the price or added on top, and have your lawyer or an accountant review the agreement of purchase and sale before you commit. The wording of the contract can change what you pay at closing.
Whatever the answer on HST, you should also plan for the provincial Real Property Transfer Tax. For deeds tendered on or after April 1, 2016, that tax is 1% of the greater of the consideration for the transfer or the assessed value of the real property. If the price is lower than the assessed value, the tax is still based on the assessed value. The Act has no first-time buyer exemption. It is payable by the person who tenders the deed for registration and must be paid before the deed is registered.
Key takeaways
- Whether HST applies depends on the type of home and the type of sale, such as a new build compared with a home already lived in.
- How HST applies to your purchase depends on your situation, so confirm it with a lawyer or accountant before you sign.
- Ask in writing whether HST is included in the price or added on top, since the agreement of purchase and sale can change what you pay at closing.
- The Real Property Transfer Tax is a separate 1% charge on the greater of the consideration or the assessed value, payable before the deed is registered.