CRA & Revenu Québec, Provincial, Tips & Advice

Tax Tip: Do You Have to Pay Taxes on Used Cars in British Columbia, Canada?

Overview

  • If you buy a used car in British Columbia, expect to pay between 12 and 20% in sales tax, depending on the car’s value and where you purchase it.
  • If you buy the car from a dealer, federal Goods and Services Tax (GST) is charged at a rate of 7%.
  • Provincial sales tax (PST) is also charged at a rate of 7% for vehicles less than $55,000, which increases by 1 percent for each additional $1,000 for vehicles above $57,000, up to a maximum of 10 percent.

GST does not apply to used vehicles sold privately, but a 12% PST is charged on those.

References & Resources

Key Concepts

  • Used cars BC
  • Vehicle PST BC
  • Sales tax BC