How much does HST add to renovation costs in New Brunswick?

New Brunswick's HST rate is 15%, applied to virtually every renovation cost — labour, materials, equipment rentals, and contractor invoices — so you need to factor it into every budget line from day one. On a $40,000 kitchen renovation, that's an additional $6,000 in tax. On a $150,000 whole-home renovation, you're looking at $22,500 in HST on top of the base contract price. Many NB homeowners are surprised when their final invoice is noticeably higher than the original quote because they forgot to ask whether the quoted price was plus HST or HST-included.

Most professional renovation contractors in New Brunswick quote prices excluding HST, then add it as a separate line item on the invoice. This is standard practice and completely normal — it doesn't mean the contractor is inflating their price at the last minute. When you're comparing quotes from multiple contractors, always confirm whether each price is before or after HST so you're comparing apples to apples. A quote of $35,000 plus HST is $40,250 all-in. A quote of $38,000 HST-included is actually cheaper, even though the number looks bigger at first glance.

HST applies to both the materials and the labour portion of any renovation contract. It also applies to materials you purchase yourself at hardware stores — there's no exemption for homeowner-purchased renovation materials. Equipment rentals are also subject to HST. The only category that sometimes creates confusion is new home construction versus renovation, but for renovation work on an existing home, 15% HST applies across the board.

Building your budget with HST included from the start is the only way to avoid sticker shock at invoice time. If your renovation budget is $50,000 all-in, your actual renovation scope before tax is roughly $43,500. Work backward from your total available budget by dividing by 1.15 to find your pre-tax renovation ceiling. On larger projects like a full gut renovation of an older Saint John or Fredericton home running $200,000 or more, the HST component alone can be $26,000-$30,000 — a significant figure that deserves its own budget line.

There is a federal GST/HST New Residential Rental Property Rebate for certain scenarios, and there have historically been rebate programs for substantial renovations that essentially convert a property to like-new condition, but these are complex and situation-specific. Do not rely on rebate programs when building your renovation budget — consult a tax professional about whether your specific project might qualify for any rebate. For standard renovation work on your principal residence, plan for the full 15% HST with no offset.

Get 3+ written quotes, confirm whether they're plus HST or HST-included, and add a 15-20% contingency on top of your HST-inclusive total for unexpected discoveries — especially in NB homes built before 1980, where surprises behind walls are routine.

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Looking for experienced contractors? The New Brunswick Construction Network connects homeowners with qualified professionals:

• Gionetterenovations
• Thirty Four Renovations