How much does HST add to the total cost of a kitchen renovation in New Brunswick, and which parts of the project are taxable?

HST adds 15% to most kitchen renovation costs in New Brunswick, which can increase a $30,000 project to $34,500 — but labour-only services have different rules that can save you money.

In New Brunswick, the Harmonized Sales Tax (HST) is 15%, combining the 5% federal GST with the 10% provincial portion. This applies to most kitchen renovation materials and contractor services, but understanding the specifics can help you budget accurately and potentially save money.

Materials are always subject to 15% HST — cabinets, countertops, appliances, flooring, tile, fixtures, and hardware all get taxed at the full rate. If you're buying a $15,000 cabinet package, you'll pay $2,250 in HST. A $4,000 quartz countertop becomes $4,600 after tax. There's no way around this — materials purchased in NB carry the full HST burden.

Labour and installation services follow more complex rules. If a contractor provides both materials and labour (the typical arrangement), they charge 15% HST on the entire contract. However, if you purchase materials separately and hire contractors for labour-only, they may qualify for different tax treatment depending on their business structure and the scope of work.

Renovation vs. new construction makes a difference for HST rebates. Kitchen renovations in existing homes don't qualify for the new housing rebate, so you pay the full 15%. However, if your kitchen renovation is part of a substantial renovation (90% or more of the interior is gutted and rebuilt), you might qualify for a partial HST rebate — but this rarely applies to kitchen-only projects.

Permit fees are HST-exempt in New Brunswick. Building permits, electrical permits, and plumbing permits don't include HST, so a $200 permit stays at $200. However, the contractor's markup on permits (if they pull them for you) may include HST.

Professional services like design fees are subject to HST. If you hire a kitchen designer for $2,000, expect to pay $2,300 including tax. Some contractors include design services in their overall quote, while others charge separately — ask for clarification on what's included.

Appliances purchased separately give you more shopping flexibility but don't change the tax burden. Whether you buy appliances through your contractor or directly from a retailer, you'll pay 15% HST either way. The advantage of buying separately is you can shop sales and compare warranties more easily.

Budget planning should include HST from the start. Many homeowners make the mistake of budgeting $30,000 for their kitchen, then discovering they need $34,500 after tax. Always add 15% to your material and contractor quotes when calculating your total project cost. For a typical mid-range NB kitchen renovation costing $35,000 before tax, plan for approximately $40,250 total.

Cash payments don't eliminate HST obligations — registered contractors must charge HST regardless of payment method. Be wary of contractors who offer "cash discounts" to avoid HST, as this suggests they're not properly registered or reporting income, which could leave you without warranty protection or recourse if problems arise.

Need help finding a kitchen renovator who provides clear, HST-inclusive quotes? New Brunswick Kitchens can match you with local contractors who are transparent about all costs upfront.