Key takeaways
- From a dealer you pay GST/HST, plus PST in BC, Manitoba, Saskatchewan and Quebec
- Alberta and the territories charge only 5% GST at a dealer, and no tax on a private sale
- Ontario charges 13% retail sales tax on private used-car sales, on the price or wholesale value, whichever is higher
- BC charges 12% PST on private sales of passenger vehicles, and 7% to 20% at a dealer depending on price
- Nova Scotia’s HST is 14% since April 1, 2025
Sales tax on a car bought from a dealer
| Province | Tax at a dealer |
|---|---|
| Ontario | 13% HST |
| Nova Scotia | 14% HST |
| New Brunswick, NL, PEI | 15% HST |
| Quebec | 5% GST + 9.975% QST |
| British Columbia | 5% GST + 7% to 20% PST (passenger vehicles; rate depends on price) |
| Manitoba | 5% GST + 7% RST |
| Saskatchewan | 5% GST + 6% PST |
| Alberta, Yukon, NWT, Nunavut | 5% GST only |
BC PST on passenger vehicles
| Purchase price | PST rate |
|---|---|
| Under $55,000 | 7% |
| $55,000 to $55,999.99 | 8% |
| $56,000 to $56,999.99 | 9% |
| $57,000 to $124,999.99 | 10% |
| $125,000 to $149,999.99 | 15% |
| $150,000 or more | 20% |
The higher BC rate applies to the whole price, not just the part above $55,000.
Tax on a private used-car sale
When you buy from another person, there is no GST or HST if the seller is not a business. But most provinces still charge tax when you register the car:
- Ontario: 13% retail sales tax on the purchase price or the vehicle’s wholesale value, whichever is higher. You pay at ServiceOntario. The seller must give you a Used Vehicle Information Package. Gifts to close family members are exempt.
- British Columbia: 12% PST on passenger vehicles. Since October 1, 2022, it is charged on the greater of the price or the average wholesale value. You pay when you register with an Autoplan broker.
- Manitoba: 7% retail sales tax, collected at registration.
- Quebec: 9.975% QST, collected by the SAAQ, on the price or a minimum value.
- Alberta and the territories: no sales tax on a private sale.
- Saskatchewan and the Atlantic provinces: tax is collected at registration on many private sales. Ask your registry for the exact amount; the calculator does not estimate it.
How the calculator works
- Dealer: it subtracts your trade-in from the price, then applies HST, or GST plus the provincial sales tax. In BC it picks the PST rate from the full price.
- Private: it uses the higher of the price and the wholesale value you enter, and applies the provincial private-sale rate for Ontario, BC, Manitoba and Quebec.
Registration, licence plates, tire and air-conditioning levies, dealer admin fees and insurance are not included.
Worked example
You buy a used car for $15,000 from a private seller in Ontario. The wholesale value is $16,500.
- Taxable value: the higher of $15,000 and $16,500 = $16,500
- Retail sales tax: 13% × $16,500 = $2,145
The same car from a dealer at $15,000 would have $1,950 HST (13% of the price). In Alberta, a private sale would have no sales tax at all.
Before you buy a car
- Check the total cost: car cost of ownership calculator and car loan calculator.
- Read our guide to buying your first car in Canada.
- Get an insurance quote before you sign; newcomers often pay much more at first.
Common questions
Do I pay tax on a used car bought privately in Ontario?
Yes. You pay 13% retail sales tax on the price or the wholesale value, whichever is higher, when you register the car at ServiceOntario.
Is there sales tax on cars in Alberta?
Only 5% GST when you buy from a dealer. There is no provincial sales tax, and no tax on a private sale between two individuals.
Does a trade-in reduce the sales tax?
Usually yes. When you trade in a vehicle at a dealer, GST or HST is charged on the price after the trade-in value. Check that your bill of sale shows this.
Why does BC charge more tax on expensive cars?
BC applies higher PST rates to passenger vehicles priced at $55,000 or more, up to 20% at $150,000 or more. The rate applies to the whole price.
Can I avoid tax by writing a lower price on the bill of sale?
No. Ontario and BC tax private sales on at least the wholesale value, and giving a false price is an offence.