2023 TurboTax® Canada Tips

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

TurboTax Canada
January 8, 2020 | 1 Min Read

Overview

  • If you buy a used car in British Columbia, through private sale, expect to pay provincial sales tax (PST). Anywhere between 12 and 20% in PST is due when you register your vehicle, depending on the car’s value and how you acquired it. Review the specific details here. 
  • If you buy the car from a dealer who is a GST registrant in a non participating province, federal Goods and Services Tax (GST) is charged at a rate of 5%.
  • BC Provincial sales tax (PST) is charged at a rate of 7% for vehicles costing less than $55,000, which increases incrementally up to 20% for vehicles ​$150,000 and over.

GST does not apply to used vehicles sold privately, but a 12% PST is charged on those. Except where valued over $150,000, at which point 20% PST will be charged. 

PST charged on non-passenger vehicles ranges from 7-12%, depending on if they were acquired through a GST registrant or not.

References & Resources

Key Concepts

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