April 27, 2026 in Toronto, Ontario, Canada — Buying a car in Canada means navigating a patchwork of federal and provincial taxes that vary significantly depending on where you live. From Alberta's 5% flat GST to Quebec's combined 14.975% GST+QST, the same $40,000 car can cost you anywhere from $42,000 to $45,990 in taxes depending on your province.
Understanding Canadian Vehicle Taxes
Canada's vehicle tax system has two components:
- Federal GST (Goods and Services Tax): 5% across all provinces and territories
- Provincial Sales Tax (PST): Varies by province, ranging from 0% to 8%
In some provinces, these are combined into a single HST (Harmonized Sales Tax). In others, they are charged separately as GST + PST.
Complete Provincial Tax Rates 2026
| Province | Federal GST | Provincial Tax | Total Rate | System |
|---|---|---|---|---|
| Alberta | 5% | 0% | 5% | GST only |
| British Columbia | 5% | 7% PST | 12% | GST + PST |
| Manitoba | 5% | 7% PST | 12% | GST + PST |
| New Brunswick | 5% | 10% HST | 15% | HST |
| Newfoundland and Labrador | 5% | 10% HST | 15% | HST |
| Northwest Territories | 5% | 0% | 5% | GST only |
| Nova Scotia | 5% | 10% HST | 15% | HST |
| Nunavut | 5% | 0% | 5% | GST only |
| Ontario | 5% | 8% HST | 13% | HST |
| Prince Edward Island | 5% | 10% HST | 15% | HST |
| Quebec | 5% | 9.975% QST | 14.975% | GST + QST |
| Saskatchewan | 5% | 6% PST | 11% | GST + PST |
| Yukon | 5% | 0% | 5% | GST only |
$50,000 Car: Total Tax by Province
| Province | Pre-Tax Price | Tax Amount | Total Cost |
|---|---|---|---|
| Alberta | $50,000 | $2,500 | $52,500 |
| NWT / Nunavut / Yukon | $50,000 | $2,500 | $52,500 |
| Saskatchewan | $50,000 | $5,500 | $55,500 |
| BC / Manitoba | $50,000 | $6,000 | $56,000 |
| Ontario | $50,000 | $6,500 | $56,500 |
| Quebec | $50,000 | $7,488 | $57,488 |
| NB / NL / NS / PEI | $50,000 | $7,500 | $57,500 |
Federal ZEV Rebate
The federal government offers a Zero-Emission Vehicles (ZEV) purchase incentive:
- Up to $5,000: For new ZEVs priced under $55,000 (trucks/SUVs under $60,000)
- Up to $3,500: For used ZEVs priced under $50,000
- Income limits apply for some rebates
This rebate is a point-of-sale reduction — the dealer applies it directly.
BC Provincial Rebates
British Columbia offers additional EV incentives:
- Up to $4,000 for new battery EVs
- Up to $2,000 for plug-in hybrids
- Scrappy rebate also available
Luxury Car Tax in BC
BC's Provincial Sales Tax (PST) applies to vehicles over $55,000 at a higher rate for the portion above $55,000:
- Vehicles $55,000 or less: 7% PST on entire amount
- Vehicles over $55,000: 7% PST + 20% PST on amount above $55,000
Example: $80,000 vehicle in BC:
- First $55,000 × 7% = $3,850
- Remaining $25,000 × 20% = $5,000
- Total PST: $8,850
- GST (5%): $4,000
- Total tax: $12,850
Luxury Car Tax Federal (BC and ON)
Both British Columbia and Ontario levy a separate provincial luxury tax on vehicles over $100,000:
- BC: 20% on portion over $100,000 (replacing higher PST)
- Ontario: 15% on portion over $100,000 for high-emission vehicles
Registration and Other Fees
| Province | New Reg Fee | Annual Reg | Notes |
|---|---|---|---|
| Ontario | $59 | $108/year | PST on insurance extra |
| British Columbia | $43 | $31-91/year | Based on vehicle type |
| Quebec | $32 | $31-98/year | Annual registration fee |
| Alberta | $77 | $77/year | Annual only, no separate new reg |
Conclusion
Car tax in Canada varies significantly by province — from 5% GST-only in Alberta to 15% HST in Atlantic provinces. For a $50,000 vehicle, this represents a $5,000 tax difference. Combined with provincial EV rebates, the total cost variation can be even greater. Use our Car Tax Calculator to compare costs.
Disclaimer: Tax rates based on 2026 provincial data. Confirm with local DMV/CRA before purchase.
Official Resources: CRA | ZEV Incentive