Newfoundland and Labrador HST in 2026: The 15% Rate, Rebates, Insurance Tax and Worked Examples

Newfoundland and Labrador shares the highest HST rate in Canada with New Brunswick and Prince Edward Island, and it adds a twist none of them have: a separate provincial sales tax on insurance premiums. Point-of-sale relief is limited to books, which themselves lost and regained their rebate within a year. This guide is for households, small business owners and bookkeepers across the island and Labrador, and for sellers elsewhere with customers in St. John's, Corner Brook, Gander or Labrador City. It covers the 2026 rate and how it splits, its history, the book rebate, the insurance tax, home and rental rebates, and worked C$ examples you can check in our Canada GST/HST calculator.

Quick answer

Newfoundland and Labrador charges 15% HST — 5% federal GST plus a 10% provincial part — on most goods and services supplied anywhere in the province. The rate has been 15% since 1 July 2016. Printed books pay only 5%, and a separate 15% retail sales tax applies to many insurance premiums.

• Rate in 2026: 15%, the same on the island and in Labrador

• Book rebate: provincial part rebated at the till (reinstated 1 January 2018)

• No rebate on children's clothing, footwear or diapers — full 15%

• 15% RST on taxable insurance premiums; auto and home personal property insurance exempt

• New purpose-built rentals can recover the full provincial part

What Newfoundland and Labrador HST is and how the 15% splits

Newfoundland and Labrador harmonized its retail sales tax with the GST in April 1997, together with Nova Scotia and New Brunswick. Since then one tax has applied to most purchases — the harmonized sales tax — collected by the Canada Revenue Agency through the ordinary GST/HST return. There is no provincial sales tax number for goods and services; a single CRA registration covers everything.

The 15% rate is the 5% federal GST plus a 10% provincial part. Every provincial rebate refunds some or all of that provincial part, and federal relief targets the 5%. The province's tax base mirrors the federal one: basic groceries, prescription drugs and exports are zero-rated; long-term residential rent, most health and dental services, child care and most financial services are exempt; other goods and services take 15% when supplied in the province.

The rate is identical in Labrador and on the island. A purchase in Happy Valley-Goose Bay carries the same 15% as one in St. John's, even though Labrador West borders Quebec, where the combined rate is lower.

Newfoundland and Labrador HST rate history

The combined rate has moved four times since harmonization. Two moves followed federal GST cuts; one was the province raising its own part in its 2016 budget.

Newfoundland and Labrador HST since harmonization

1 Apr 1997

HST introduced at 15% (7% GST + 8% provincial)

1 Jul 2006

Falls to 14% as the GST drops to 6%

1 Jan 2008

Falls to 13% as the GST drops to 5%

1 Jul 2016

Rises to 15% as the province lifts its part from 8% to 10%

1 Jan 2017

General point-of-sale book rebate ends

1 Jan 2018

Book rebate reinstated

The 2016 increase was introduced with transitional rules: tax that became payable before 1 July 2016 stayed at 13%. As with every rate change, refunds and credit notes still use the rate charged on the original sale, which is worth remembering if you ever reverse a very old invoice or deal with an older audit year.

When a sale is taxed at Newfoundland and Labrador's 15%

The rate follows the place of supply. Goods are taxed where they're delivered or made available, most services where the customer's address is, and real-property services where the property is. Our GST/HST rates by province guide has the full rules.

The Labrador–Quebec border makes this practical for businesses in Labrador City, Wabush and the Labrador Straits. Fermont and Blanc-Sablon in Quebec are a short drive away, and a sale delivered across that line takes Quebec's 5% GST (plus QST if the seller is registered for it) rather than 15% HST.

Worked example — a Labrador City equipment dealer. It sells a C$12,000 snowmobile.

• To a local customer who takes delivery in Labrador City: HST = C$12,000 × 0.15 = C$1,800.
• Delivered by the dealer to a buyer's home in Fermont, Quebec: GST = C$12,000 × 0.05 = C$600, plus QST only if the dealer is registered for QST.

Worked example — a St. John's marketing consultant. A C$4,000 project for a client in Halifax takes 14% Nova Scotia HST (C$560); the same project for a client in Mount Pearl takes C$600.

The point-of-sale book rebate

Newfoundland and Labrador rebates the 10% provincial part of the HST on qualifying books at the till, so shoppers pay only the 5% GST. Qualifying books are most printed books and updates, bound and unbound scripture, audio recordings that are all or substantially all a reading of a printed book, and some packages that combine a printed book with another item. E-books, magazines, newspapers, colouring books, agendas and calendars are not covered.

The rebate has an unusual history. The province ended the general point-of-sale book rebate on 1 January 2017; for that year, only certain public service bodies such as public libraries, schools, universities and municipalities could recover the provincial part. In August 2017 the government announced it would bring the general rebate back, and it was reinstated from 1 January 2018 on the same terms as before. The rebate is available at every point in the distribution chain — wholesalers, retailers and consumers alike.

Worked example — a Corner Brook bookstore sale. A customer buys two printed novels at C$22 each, a C$12 magazine and a C$30 jigsaw puzzle. The novels qualify: C$44 × 0.05 = C$2.20. The magazine and puzzle take full HST: C$42 × 0.15 = C$6.30. Total tax C$8.50, compared with C$12.90 if everything had been charged 15%.

If a store charged 15% on a qualifying book and won't correct it, you can claim the provincial part from the CRA with Form GST189, reason code 16. The province's notice gives four years from when the provincial part became payable or was paid, and the CRA won't pay a total claim of C$2 or less.

What isn't rebated. Unlike Ontario and Nova Scotia, Newfoundland and Labrador has no point-of-sale rebate on children's clothing, footwear, diapers or car seats. The CRA's children's goods info sheet names only Ontario, Nova Scotia and PEI. A C$60 pair of children's winter boots in Gander costs C$69.00 with tax; the same boots in Halifax cost C$63.00.

Newfoundland and Labrador sales taxes at a glance (2026)

15%

HST rate

Since 1 July 2016

10%

Provincial part

Refunded on printed books

5%

Tax on printed books

Rebate reinstated 1 Jan 2018

15%

RST on insurance

Separate from HST

Retail sales tax on insurance premiums

Insurance is an exempt financial service under the HST, so no GST/HST appears on a premium anywhere in Canada. Newfoundland and Labrador, however, charges its own 15% retail sales tax on taxable insurance premiums relating to property, risks, perils or events in the province. The province's Department of Finance lists exemptions including automobile insurance and personal property insurance — which covers residential properties insured under a commercial policy as long as they aren't used commercially. Insurers collect the tax and remit it to the province, not the CRA.

For businesses, the important point is that this RST is not GST/HST. It doesn't go on your GST/HST return, and you can't claim it as an input tax credit. It is simply a cost of the insurance, deductible as a business expense for income tax like the premium itself.

Worked example — a St. John's retail shop. Annual commercial property and liability insurance: C$4,000 premium. RST at 15%: C$600, total C$4,600. None of the C$600 is recoverable through the GST/HST return. The owner's personal auto policy, by contrast, carries no RST.

Mixed-use buildings need a closer look. If the same owner lives above the shop and insures the whole building on one commercial policy, the residential part can fall under the personal property exemption only while it isn't used commercially, so ask your insurer how the premium is divided between taxable and exempt cover, and to show the RST line separately on the invoice. If you think RST was charged on an exempt premium, raise it with the insurer first, and then with the Department of Finance's tax administration if it isn't resolved.

Add 15% HST to a C$12,000 purchase

Add TaxRemove Tax

AmountTax Rate

5% GST (AB, NT, NU, YT)13% HST (ON)14% HST (NS)15% HST (NB, NL, PE)11% GST+PST (SK)12% GST+PST (BC, MB)14.975% GST+QST (QC)

Net Amount (Before Tax)$12,000.00

Tax (15%)$1,800.00

Gross Amount (Including Tax)$13,800.00

Open the full GST/HST Calculator (PDF, save, compare)

HST on new homes and rentals in Newfoundland and Labrador

A new home in the province carries 15% HST. On a C$400,000 new house in Paradise that's C$60,000: C$20,000 federal and C$40,000 provincial. The CRA's housing rebate guide describes provincial new housing rebates for Ontario but none for Newfoundland and Labrador, and the province's pandemic-era Residential Construction Rebate Program is closed, so new-home relief comes mainly from federal programs.

Federal first-time home buyers' rebate. For agreements signed from 20 March 2025 and before 2031, first-time buyers can recover 100% of the 5% federal part on new homes up to C$1 million, phasing out at C$1.5 million. You must be 18 or older, a Canadian citizen or permanent resident, and not have lived in a home you or your spouse owned in the current year or the previous four.

Federal new housing rebate. Other buyers may recover 36% of the federal part, up to C$6,300, on homes priced below C$450,000, with the full amount up to C$350,000.

Worked example — the Paradise house, first-time buyer, agreement signed in 2026. HST C$60,000. The first-time buyers' rebate refunds the federal C$20,000. Net HST: C$40,000. A buyer who isn't a first-timer would qualify for the regular federal rebate, but at C$400,000 it is partly phased out, so they'd recover less than the C$6,300 maximum.

Purpose-built rentals. The province refunds 100% of the 10% provincial part on qualifying new rental housing where the federal enhanced rental rebate conditions are met — generally at least four private units or ten rooms, with 90% held for long-term rental, construction starting after 13 September 2023 and before 2031, and substantial completion before 2036. The CRA administers the claim; its info sheet GI-201 covers the Newfoundland and Labrador details. With the federal 100% GST rebate, a qualifying project can recover all 15%.

Online shopping and imports

Residents pay 15% on most goods and services they buy from outside the province too. A registered Canadian retailer shipping to a Newfoundland and Labrador address charges 15%, because the goods are delivered there. Non-resident digital platforms that pass C$30,000 of sales to Canadian consumers in a 12-month period must register and charge the customer's provincial rate, so a streaming or app subscription should show 15%. On goods imported from abroad, the Canada Border Services Agency or the courier collects the GST and the provincial part for goods destined for the province, along with any duty, and qualifying printed books get the provincial part deducted at the border.

Registered businesses claim HST paid on business imports as input tax credits, supported by the customs accounting document — keep those with your purchase invoices.

Newfoundland and Labrador HST for businesses

Register with the CRA once your worldwide taxable sales pass C$30,000 in a calendar quarter or over four consecutive quarters; our GST registration guide walks through it. Charge 15% on supplies made in the province, show your registration number on invoices, and file monthly, quarterly or annually.

Worked example — a Gander catering company's quarter. Catering for local events: C$36,000. A wedding catered in Clarenville: C$9,000. A corporate lunch contract in Grand Falls-Windsor: C$5,000. All three are supplied in the province, so all take 15%.

• HST on C$50,000 of taxable sales: C$7,500 (line 103)
• ITCs on equipment, packaging, fuel and rent: C$2,300
• Net tax (line 109): C$5,200

A small service business with few inputs might compare this with the quick method, which for a service business in a 15% province remits 10.0% of HST-included sales. Run both calculations for a full year before electing.

Removing 15% HST from a total

Receipts and quotes in the province are often tax-included, and bookkeepers need to split them. Divide the total by 1.15 to get the pre-tax amount; the HST is the difference, which is the same as 15/115 of the total. A C$230 restaurant bill in St. John's is C$200 before tax plus C$30 HST. The common mistake is taking 15% of the total — C$34.50 — which overstates the tax by C$4.50 and understates revenue by the same amount. On a mixed receipt with a qualifying book, strip the book out first and divide its share by 1.05 instead. Our how to calculate HST guide covers reverse calculations and the CRA's half-cent rounding rule in more detail.

Newfoundland and Labrador HST checks for 2026

0/5

• Tax code for the province set at 15%
• Quebec (5%) and other provincial rates set for out-of-province deliveries
• Printed books coded at 5%; children's clothing at the full rate
• Insurance RST booked as an expense, not as an ITC
• Customs documents kept for HST paid on imports

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Common Newfoundland and Labrador HST mistakes

Expecting Ontario-style rebates. Children's clothing, diapers and small food orders take the full 15%.

Claiming insurance RST as an ITC. It's a provincial retail sales tax outside the GST/HST system.

Charging 15% on Quebec deliveries. Goods delivered to Fermont or Blanc-Sablon are supplied in Quebec.

Assuming the old construction rebate still exists. The Residential Construction Rebate Program has closed; new homes rely on federal rebates.

Using 13% on old credit notes the wrong way round. Sales made before 1 July 2016 were at 13%; later ones are at 15%. Reverse each at its original rate.

Official links

• CRA — GST/HST calculator and ratesCurrent rates and history
• NL Finance — HST point-of-sale book rebateQualifying books and claims
• NL Finance — Retail sales tax on insurance premiumsRate and exemptions
• CRA — New residential rental property rebateIncludes the provincial rental rebate
• CRA — First-time home buyers' GST/HST rebateEligibility and dates
• CRA — Form GST189 and Guide RC4033Claim a missed rebate

What to do next

Check that your invoicing or till system charges 15% in the province, codes printed books at 5%, and uses the correct rate for Quebec and other provinces. Use our Canada GST/HST calculator for quick sums and the how to calculate HST guide for reverse calculations and rounding. If you also sell elsewhere in Atlantic Canada or Ontario, see our guides to New Brunswick HST, Nova Scotia HST and Ontario HST.

This is general information, not legal or tax advice — confirm on the official source or with a professional.

Frequently asked questions

What is the HST rate in Newfoundland and Labrador?

Newfoundland and Labrador's HST is 15%: the 5% federal GST plus a 10% provincial part. The rate rose from 13% on 1 July 2016 and hasn't changed since. It applies across the island and Labrador to most goods and services supplied in the province, and the Canada Revenue Agency collects it.

Is there HST on books in Newfoundland?

Only the 5% GST on qualifying printed books, audio books and printed scripture. The province rebates its 10% part at the till. That general book rebate was removed on 1 January 2017 and reinstated on 1 January 2018, so receipts from 2017 showing 15% on books were correct at the time.

Do you pay HST on insurance in Newfoundland?

Insurance is exempt from HST, but Newfoundland and Labrador charges its own 15% retail sales tax on taxable insurance premiums for property, risks and events in the province. Automobile insurance and personal property insurance on homes not used commercially are exempt. The RST isn't GST/HST, so businesses can't claim it as an input tax credit.

Are children's clothes taxed in Newfoundland?

Yes, at the full 15%. Newfoundland and Labrador doesn't offer the point-of-sale rebate on children's clothing, footwear or diapers that Ontario and Nova Scotia do. The CRA's info sheet on children's goods lists only Ontario, Nova Scotia and Prince Edward Island. Basic groceries remain zero-rated.

Is there a provincial HST rebate for new rental housing in Newfoundland?

Yes. Newfoundland and Labrador refunds 100% of the 10% provincial part on qualifying purpose-built rental housing that meets the federal enhanced rental rebate conditions, administered by the CRA. Combined with the federal 100% GST rebate, a qualifying project can recover all 15% HST on construction.

Sources & verification

Figures on this page were checked against the sources below when it was last reviewed on 12 October 2026. Each rate and limit is stored once with its own official source and review date, and official update channels are monitored daily so changes are picked up. How we verify

1. 1.GST/HST calculator (and rates) — Canada Revenue Agency · accessed 12 October 2026
2. 2.GI-191 New Brunswick and Newfoundland and Labrador HST Rate Increases — Canada Revenue Agency · accessed 12 October 2026
3. 3.Reinstatement of the General HST Point-of-Sale Book Rebate in Newfoundland and Labrador — Government of Newfoundland and Labrador, Department of Finance · accessed 12 October 2026
4. 4.Excise and GST/HST News No. 101 — Canada Revenue Agency · accessed 12 October 2026
5. 5.FAQ — Retail Sales Tax on Insurance Premiums — Government of Newfoundland and Labrador, Department of Finance · accessed 12 October 2026
6. 6.Residential Construction Rebate Program — Government of Newfoundland and Labrador, Department of Finance · accessed 12 October 2026
7. 7.Point-of-Sale Rebate on Children's Goods (GI-063) — Canada Revenue Agency · accessed 12 October 2026
8. 8.GST/HST new residential rental property rebate — Canada Revenue Agency · accessed 12 October 2026
9. 9.First-time home buyers' GST/HST rebate — Who can apply — Canada Revenue Agency · accessed 12 October 2026
10. 10.RC4028 GST/HST New Housing Rebate — Canada Revenue Agency · accessed 12 October 2026
11. 11.Newfoundland and Labrador Reinstates HST Point-of-Sale Book Rebate — Ryan · accessed 12 October 2026