April 26, 2026 in Montreal, Canada — Quebec has the most complex vehicle tax system in Canada. Instead of using the harmonised HST system, Quebec applies federal GST (5%) followed by its own Quebec Sales Tax (QST) at 9.975%) — creating a combined tax burden of 14.975% on all vehicle purchases, the highest in the country.
Understanding Quebec's Vehicle Tax System
Quebec does not participate in the Harmonized Sales Tax (HST) system used by Ontario and the Atlantic provinces. Instead, Quebec operates its own two-tier tax system:
- Federal GST (5%): Charged on the vehicle purchase price, administered by the Canada Revenue Agency (CRA).
- Quebec Sales Tax (QST) at 9.975%: Charged on the post-GST amount, administered by Revenu Quebec.
The compounding effect of QST being calculated on top of GST (rather than on the pre-tax price) means the total tax rate is slightly more than simply adding 5% + 9.975%.
Calculating Total Tax on a Car in Quebec
Formula: Purchase Price → + GST (5%) → + QST (9.975% of post-GST amount) = Total Price
| Vehicle Price | GST (5%) | QST (9.975%) | Total Tax | Total Cost |
|---|---|---|---|---|
| $20,000 | $1,000 | $2,094.75 | $3,094.75 | $23,094.75 |
| $35,000 | $1,750 | $3,665.63 | $5,415.63 | $40,415.63 |
| $50,000 | $2,500 | $5,249.38 | $7,749.38 | $57,749.38 |
| $75,000 | $3,750 | $7,874.06 | $11,624.06 | $86,624.06 |
| $100,000 | $5,000 | $10,498.75 | $15,498.75 | $115,498.75 |
| $120,000 | $6,000 | $12,598.50 | $18,598.50 | $138,598.50 |
QST Calculation: The Compounding Effect
QST is not calculated on the original purchase price — it is calculated on the GST-inclusive price. This creates a compounding effect:
Wrong method (simple addition): 5% + 9.975% = 14.975% of $50,000 = $7,487.50
Correct method (Quebec's actual system): GST = $2,500, QST = $42,000 x 9.975% = $4,189.50, Total = $6,689.50 on $50,000 = 13.38%
Actually, the correct calculation is: $50,000 x 1.05 = $52,500, then $52,500 x 0.09975 = $5,236.88, Total tax = $7,736.88 = 15.47% of original $50,000.
Quebec vs Other Provinces
| Province | Tax System | Combined Rate | Tax on $50k Car |
|---|---|---|---|
| Quebec | GST + QST | ~15.5% effective | ~$7,737 |
| Ontario | HST 13% | 13% | $6,500 |
| British Columbia | GST + PST 7% | 12% | $6,000 |
| Alberta | GST only | 5% | $2,500 |
| PEI | HST 15% | 15% | $7,500 |
Business ITC Claims in Quebec
Businesses purchasing vehicles in Quebec can claim Input Tax Credits (ITCs) for both GST and QST paid, significantly reducing the effective tax burden for commercial vehicle purchases:
- Register for GST/QST accounts with CRA and Revenu Quebec
- Claim full GST paid as ITC against GST collected
- Claim full QST paid as ITC against QST collected
- Net result: business pays only the pre-tax price for vehicles used commercially
Quebec EV Rebate: Roulez vert Program
Quebec's Roulez vert program offers the most generous provincial EV incentive in Canada:
| Vehicle Type | Roulez Vert Rebate | Federal iZEV | Combined |
|---|---|---|---|
| Battery EV (base) | Up to $7,000 | Up to $5,000 | Up to $12,000 |
| Battery EV (higher income) | Reduced rebate | Up to $5,000 | Varies |
| Plug-in Hybrid | Up to $5,000 | Up to $5,000 | Up to $10,000 |
The combined federal and provincial rebates significantly offset Quebec's high vehicle taxes for EV buyers.
Quebec Vehicle Registration: SAAQ
Vehicle registration in Quebec is handled by the Societe de assurance automobile du Quebec (SAAQ). Registration costs approximately $287 for a two-year period for passenger vehicles. This is separate from the purchase taxes above.
Federal Luxury Tax: $100,000+ Vehicles
Under the federal Select Luxury Items Tax Act, new vehicles with a retail price above $100,000 attract an additional luxury tax:
Luxury tax = lesser of (10% of amount over $100,000) OR (20% of the amount over $100,000)
For a $120,000 vehicle: Luxury tax = lesser of ($2,000) or ($4,000) = $2,000
Conclusion
Quebec has the highest vehicle purchase tax in Canada at nearly 15.5% effective combined rate. On a $50,000 vehicle, buyers pay approximately $7,737 in GST + QST. However, the generous Roulez vert EV rebate of up to $7,000, combined with the federal iZEV rebate, can significantly reduce the net cost for electric vehicle buyers.
Disclaimer: Tax rates based on CRA and Revenu Quebec data as of April 2026. Confirm with your dealer and Revenu Quebec for the most current rates.
Official Resources: Revenu Quebec | SAAQ Quebec | CRA Canada | Roulez Vert Program