Canada’s Luxury Vehicle Tax

Canada's Luxury Vehicle Text

When the federal budget was passed in July, it introduced a tax on the sale or import of “luxury” vehicles priced above $100,000. This takes effect on September 1st, 2022. How does it work? This new tax will apply to the sale of any vehicle that costs above the $100,000 price threshold and is payable by the vendor when the sale is completed. The $100k includes any dealer fees but excludes taxes. The amount be will equal to the lesser of 10% of its purchase price or 20% of the differenc