New Brunswick and Prince Edward Island are both 15% HST provinces with a 60-day builders lien, but they differ on almost everything else: minimum wage, holdback percentages, small claims limits and how many trades are compulsory. This guide covers both side by side so you know which rules apply on which side of the Confederation Bridge.
Sales tax: HST 15% in both
Both provinces charge 15% HST (5% federal plus 10% provincial). Neither changed its rate in the 2024 to 2026 window. Register for GST/HST once taxable revenue passes $30,000 over four consecutive quarters, within 29 days of the effective date. Under the quick method, the remittance rate for services supplied in either province is 10.0%.
Minimum wage
- New Brunswick: $15.90 an hour (set 1 April 2026).
- PEI: $17.00 an hour, rising to $17.30 on 1 October 2026.
PEI sits among the higher minimums in the country; New Brunswick among the lower. Factor it in before you take on a labourer in either province.
Builders lien
Both provinces preserve a lien within 60 days, but the holdback and the governing Act differ.
New Brunswick runs the Construction Remedies Act, in force since 1 November 2021 for contracts signed on or after that date. Older contracts stay under the former Mechanics' Lien Act.
- Preserve (register): 60 days from your last day of work or last supply.
- Holdback: 10% on private work; 5% on Crown (public) contracts.
Prince Edward Island still runs the older Mechanics' Lien Act.
- Preserve (register): 60 days from your last day of work, last supply, or completion or abandonment of the contract.
- Holdback: 15% on contracts over $15,000; 20% on contracts of $15,000 or under. PEI has not reduced its holdback to the 10% seen elsewhere, so these higher rates still bite.
In both provinces, perfecting the lien (starting a court action) has its own deadline set by the Act. Confirm the exact perfection period in the statute or with a local construction lawyer before the clock runs out, because the published research did not pin it.
Prompt payment: neither in force
New Brunswick passed the Construction Prompt Payment and Adjudication Act in June 2023, but it has not been proclaimed and the regulations are not out. When it does land, owners will get 28 days to pay a proper invoice and "paid when paid" clauses become unenforceable. PEI has no prompt-payment legislation and no announced plan to bring any in. So in both provinces, the lien is your only statutory backstop today.
Workers compensation
- New Brunswick: WorkSafeNB (worksafenb.ca, 1-800-999-9775). The 2026 average assessment rate is $1.10 per $100 of payroll, the lowest in the province's history and among the lowest in Canada. Registration is mandatory at three or more workers; solo operators can buy voluntary coverage. Construction rates vary sharply by class, so pull your own rate group from the current WorkSafeNB rate schedule rather than relying on the average.
- PEI: WCB PEI (wcb.pe.ca, 1-800-237-5049). Coverage is mandatory for most industries from one worker. The 2026 average assessment rate is $1.28 per $100. Per-class construction rates are not published openly: phone WCB PEI Employer Services for the schedule that applies to your work.
Get a clearance for any subcontractor in either province before they start, or you risk inheriting their unpaid premiums. Report injuries within three days.
Licensing
- New Brunswick: 12 compulsory occupations, administered by Skilled Trades NB. They include Construction Electrician, Plumber, Steamfitter-Pipefitter, Refrigeration and Air Conditioning Technician, Sprinkler System Installer, Sheet Metal Worker and Bricklayer. Carpenter and painter are not compulsory.
- PEI: 4 compulsory certified trades only: Automotive Service Technician, Construction Electrician, Plumber, and Steamfitter/Pipefitter. Everything else among PEI's designated trades is voluntary certification.
Red Seal endorsements are recognised in both provinces.
Small claims
- New Brunswick: up to $20,000, under the Small Claims Act.
- PEI: up to $16,000. Costs are capped at $1,200 under the small claims rules.
Quirks worth knowing
- PEI's 15% to 20% holdback is unusually high. On a small job under $15,000 the owner can legally hold back a fifth of the price.
- New Brunswick's WorkSafeNB rate spread is wide: electrical and mechanical contractors can sit in a much lower rate group than general building trades. Confirm your class.
- Both provinces apply a 10-day cooling-off period to in-home and door-to-door renovation contracts.
Common mistakes
- Assuming a 10% holdback in PEI. It is 15% or 20%, depending on the contract size.
- Treating the two provinces as identical. Same HST, same 60-day lien window, but different wage floors, holdbacks, compulsory-trade counts and claim limits.
- Waiting for prompt payment. Neither regime is in force. Use the lien.
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