GST, HST, PST and QST on a Car in Canada

This page is general information, not legal or financial advice.

Sales tax is often the biggest cost after the vehicle price itself, and it varies by province. Understanding which tax applies, and when it is collected, helps you budget accurately and avoid surprises at registration.

The taxes involved

Canada has a federal sales tax and provincial taxes that differ by region.

Tax	What it is	Where it applies
GST	Federal goods and services tax, 5%	Across Canada
HST	Harmonized tax combining federal and provincial parts	Ontario 13%, Atlantic provinces 15%
PST	Provincial sales tax charged on top of GST	British Columbia 7%, Saskatchewan 6%, Manitoba (RST) 7%
QST	Quebec Sales Tax, charged along with GST	Quebec 9.975%
No PST	GST only	Alberta, and the territories charge GST only

In HST provinces you pay one combined rate. In GST-plus-provincial provinces, two taxes apply to the price. Rates and rules can change, and some vehicle categories have special rules, so confirm current details with the Canada Revenue Agency and your provincial tax authority.

Buying from a dealer

A licensed dealer normally collects the applicable tax at the time of sale and shows it on the bill of sale or purchase contract. Taxes apply to the vehicle price and, generally, to certain fees the dealer charges. Check the contract line by line. The page on dealership fees in Canada explains which charges you may see besides the price.

Points to confirm with the dealer:

Which taxes are being charged and at what rate.
Whether tax is calculated on the price after your trade-in is deducted.
Whether any rebates or incentives are applied before or after tax.
What is included in the taxable amount.

Rebates and incentives can be treated differently depending on whether they come from the manufacturer or the dealer, and whether they are applied before tax. Ask for the written calculation.

Buying from a private seller

In a private sale, the seller does not usually collect sales tax. Instead, the province generally collects tax from the buyer when the vehicle is registered and transferred into your name. The details differ:

Some provinces tax the purchase price you declare.
Some compare the price to a reference or book value and may tax the higher of the two.
Some require a declaration form signed by both parties.

Because of this, record the real price on the bill of sale. An understated price can cause problems at registration and may weaken your position in a dispute. See bill of sale for a car in Canada and buying from a private seller for the paperwork steps.

Which province’s tax applies

Tax is generally tied to the province where you will register the vehicle, which is typically where you live. If you buy in a different province, you may need to pay the tax of your home province at registration, with credit for tax already paid in some situations. The rules are not uniform, so check with your registry before you commit.

Buyers moving into Canada or importing a vehicle may face additional federal charges and requirements. See importing a car from the US to Canada for an overview, and check with the Canada Border Services Agency and Transport Canada.

Province-by-province snapshot

Ontario. HST 13% on dealer sales. On private sales, retail sales tax is collected through ServiceOntario at transfer. See Ontario’s UVIP for the paperwork that accompanies it.
Atlantic provinces. HST 15% on dealer sales. Private-sale handling is through the provincial registry.
Quebec. GST 5% plus QST 9.975%. For private sales, the SAAQ collects the tax at registration. More in buying a car in Quebec.
British Columbia. GST 5% plus PST 7% on most purchases, though PST on vehicles may be set by purchase price bands, so check with ICBC or the BC government. See buying a car in British Columbia.
Alberta. GST 5% only. No PST. See buying a car in Alberta.
Saskatchewan and Manitoba. GST 5% plus PST of 6% in Saskatchewan and RST of 7% in Manitoba. Private-sale tax is generally collected at registration.

Details such as vehicle categories, thresholds or exemptions can differ, and only the official sources are authoritative.

Trade-ins and tax

When you trade in a vehicle at a dealership, many provinces let you deduct the trade-in value from the price before tax. That means tax is calculated on the difference. A private sale of your old vehicle does not get this treatment, so compare. Read trade-in vs private sale for how the net result can differ.

Other taxes and charges to budget for

Registration, plate and licence fees, set by each province. See vehicle registration in Canada by province.
Environmental or luxury charges in some cases, which vary by vehicle type and may change.
Air conditioning excise tax, applied to some vehicles by the federal government. Confirm current rules with the CRA.
Inspection costs, where required for transfer.

Do not assume these amounts. Check the current schedules.

Quick checklist before you sign

Ask which taxes apply and at what rate.
Get the tax calculation in writing, line by line.
Confirm how trade-ins and rebates are treated.
For private sales, ask your registry how tax is calculated and when it is due.
Put the true price on the bill of sale.
Add registration and other fees to your budget.
Keep receipts and the transfer paperwork.

Key takeaways

GST is 5% nationwide; HST is 13% in Ontario and 15% in the Atlantic provinces; Quebec adds 9.975% QST; BC, Saskatchewan and Manitoba add PST or RST; Alberta has no PST.
Dealers collect tax at sale; for private sales, tax is generally paid at registration.
Tax usually follows the province where you register the vehicle.
Trade-in treatment varies by province, so get the calculation in writing.
Confirm current rates and rules with the CRA, Revenu Québec or your provincial authority.

Frequently asked questions

Do I pay tax when buying a used car from a private seller?

Usually yes, but the tax is typically collected by the province when you register the vehicle, not paid to the seller. The amount is often based on the purchase price or a reference value, depending on the province. Confirm the rules with your provincial registry before you agree on a price.

Does a trade-in reduce the sales tax?

In many provinces, the trade-in value is deducted from the price before tax is calculated at a dealership, so you pay tax on the difference. Rules vary, so ask for the tax calculation in writing and confirm with your provincial tax authority.

Which provinces have HST?

Ontario charges 13% HST and the Atlantic provinces charge 15% HST. In those provinces, HST combines the federal and provincial parts into one tax. Other provinces charge GST of 5% plus their own provincial tax, if any, so check the rules where you live.

If I buy a car in another province, whose tax do I pay?

Generally the tax is based on where you register the vehicle, which is your province of residence, not where you bought it. You may owe tax at registration even if you paid some at the sale. Ask both the seller and your registry before you buy.

Informational only. AutoChoice.ca does not sell vehicles or provide financing, insurance, legal or tax advice. Rates, fees and rules change and vary by province; confirm with the dealer, lender, insurer or government agency before you act. See the disclaimer.