Sales Tax on New Vehicles (From Dealer)
| Province | GST | PST/HST | Total Tax Rate | Tax on $40,000 Car | Tax on $60,000 Car |
|---|---|---|---|---|---|
| Alberta | 5% | 0% | 5% | $2,000 | $3,000 |
| BC | 5% | 7–20% PST* | 12–25% | $4,800 | $7,200+ |
| Saskatchewan | 5% | 6% PST | 11% | $4,400 | $6,600 |
| Manitoba | 5% | 7% RST | 12% | $4,800 | $7,200 |
| Ontario | — | 13% HST | 13% | $5,200 | $7,800 |
| Quebec | 5% GST | 9.975% QST | 14.975% | $5,990 | $8,985 |
| New Brunswick | — | 15% HST | 15% | $6,000 | $9,000 |
| Nova Scotia | — | 15% HST | 15% | $6,000 | $9,000 |
| PEI | — | 15% HST | 15% | $6,000 | $9,000 |
| Newfoundland | — | 15% HST | 15% | $6,000 | $9,000 |
| NWT/Nunavut/Yukon | 5% | 0% | 5% | $2,000 | $3,000 |
BC PST on vehicles is graduated — see BC luxury surtax section below.
Sales Tax on Used Vehicles (Private Sale)
| Province | Tax Type | Rate | Based On | Notes |
|---|---|---|---|---|
| Alberta | No PST | 0% | — | Only province with no tax on private sales |
| BC | PST | 12% (or higher with surtax) | Purchase price or book value (higher) | Graduated rate for luxury vehicles |
| Saskatchewan | PST | 6% | Purchase price or book value | Minimum value applies |
| Manitoba | RST | 7% | Purchase price or book value (higher) | Paid at registration |
| Ontario | RST | 13% | Purchase price or wholesale value (higher) | Paid at ServiceOntario |
| Quebec | QST | 9.975% | Purchase price or book value (higher) | Paid at SAAQ registration |
| New Brunswick | HST | 15% | Purchase price | Paid at registration |
| Nova Scotia | HST | 15% | Purchase price or book value | Paid at registration |
| PEI | HST | 15% | Purchase price or book value | Paid at registration |
| Newfoundland | HST | 15% | Purchase price | Paid at registration |
BC Luxury Vehicle Surtax
| Vehicle Value (Purchase Price) | PST Rate |
|---|---|
| Up to $55,000 | 7% |
| $55,001–$56,000 | 8% |
| $56,001–$57,000 | 9% |
| $57,001–$124,999 | 10% |
| $125,000–$149,999 | 15% |
| $150,000+ | 20% |
BC Surtax Examples
| Vehicle Price | PST Rate | PST Amount | GST (5%) | Total Tax |
|---|---|---|---|---|
| $40,000 | 7% | $2,800 | $2,000 | $4,800 |
| $60,000 | 10% | $6,000 | $3,000 | $9,000 |
| $100,000 | 10% | $10,000 | $5,000 | $15,000 |
| $150,000 | 15% | $22,500 | $7,500 | $30,000 |
| $200,000 | 20% | $40,000 | $10,000 | $50,000 |
Federal Luxury Tax (Select Luxury Items Tax)
| Feature | Detail |
|---|---|
| Applies to | Vehicles with retail price over $100,000 |
| Tax calculation | Lesser of: 20% of value above $100,000 or 10% of full value |
| Who pays | Buyer (collected by dealer) |
| Effective since | September 1, 2022 |
| Applies to used vehicles? | No — only on first retail sale |
Federal Luxury Tax Examples
| Vehicle Price | 20% of Amount Over $100K | 10% of Full Price | Luxury Tax (Lesser) |
|---|---|---|---|
| $90,000 | $0 (under threshold) | N/A | $0 |
| $110,000 | $2,000 | $11,000 | $2,000 |
| $150,000 | $10,000 | $15,000 | $10,000 |
| $200,000 | $20,000 | $20,000 | $20,000 |
| $300,000 | $40,000 | $30,000 | $30,000 |
Trade-In Tax Credits by Province
| Province | Trade-In Reduces Taxable Amount? | Example: $40K car, $15K trade-in |
|---|---|---|
| Alberta | N/A (no PST) | Tax on $40K: $2,000 |
| BC | ❌ No — tax on full price | Tax on $40K |
| Saskatchewan | ❌ No | Tax on $40K |
| Manitoba | ❌ No | Tax on $40K |
| Ontario | ✅ Yes (on HST for new from dealer) | Tax on $25K: $3,250 |
| Quebec | ✅ Yes (on QST, dealer sales) | Tax on $25K: $3,744 |
| New Brunswick | ✅ Yes (on HST, dealer) | Tax on $25K: $3,750 |
| Nova Scotia | ✅ Yes (on HST, dealer) | Tax on $25K: $3,750 |
| PEI | ✅ Yes (on HST, dealer) | Tax on $25K: $3,750 |
| Newfoundland | ✅ Yes (on HST, dealer) | Tax on $25K: $3,750 |
EV Incentives That Offset Tax
| Program | Amount | Eligibility |
|---|---|---|
| Federal iZEV rebate | Up to $5,000 | New BEV or PHEV under MSRP cap |
| BC CleanBC Go Electric | Up to $4,000 | BC residents, eligible EVs |
| Quebec Roulez Vert | Up to $7,000 | Quebec residents, new EVs |
| Nova Scotia | Up to $3,000 | NS residents, new/used EVs |
| PEI | Up to $5,000 | PEI residents, new EVs |
| NB | Up to $5,000 | NB residents, new EVs |
Incentives reduce effective cost but do not reduce the sales tax base (tax is calculated on the pre-incentive price).
Tips to Minimize Car Tax
| Strategy | Savings |
|---|---|
| Buy in Alberta (if feasible) | 0% PST — only 5% GST |
| Trade in at dealership (ON, QC, Atlantic) | Tax on net price only |
| Buy used privately in Alberta | $0 tax |
| Stay under BC’s $55K PST surtax threshold | 7% vs 10–20% |
| Stay under $100K federal luxury threshold | Avoid federal luxury tax |
| Claim EV incentives | Up to $5,000+ off effective price |
| Lease vs buy | Tax on lease payments, not full price (in most provinces) |