British Columbia applies both GST and PST to used car purchases, making the total tax burden 12% of the vehicle price. This applies to private sales, dealer purchases, and auction sales. There are ways to reduce or eliminate PST through specific exemptions.
BC Used Car Tax Rate — 12% Total
Used car purchases in BC are taxed at:
- GST: 5% federal — applies to all vehicle purchases in Canada
- BC PST: 7% provincial — applies to used vehicle purchases
- Total: 12% combined GST+PST
BC Used Car Tax Examples — 2025
| Vehicle Price | GST (5%) | PST (7%) | Total Tax |
|---|---|---|---|
| $8,000 (Economy) | $400 | $560 | $960 |
| $15,000 (Compact) | $750 | $1,050 | $1,800 |
| $25,000 (Midsize) | $1,250 | $1,750 | $3,000 |
| $45,000 (Luxury SUV) | $2,250 | $3,150 | $9,900* |
*Luxury: +8% additional PST on amount over $100K
BC Used Car Tax Calculator
The basic formula for BC used car tax:
- Vehicle price (or MVDA value, whichever is higher) x 12% = total GST + PST
- Example: $20,000 car = $2,400 in total tax
MVDA Assessed Value Rule
BC uses MVDA (Motor Vehicle Dealers Act) assessed values to prevent buyers from understating purchase prices to reduce PST. If your actual purchase price is below the ICBC MVDA assessed value, PST is calculated on the higher MVDA value.
Tip: Before negotiating price, check the MVDA assessed value at icbc.com or with ICBC to know the minimum taxable amount.
BC PST Exemptions on Used Cars
| Exemption Type | Eligibility | How to Claim |
|---|---|---|
| Family Transfer | Spouse, parent, child | BC Finance form |
| Estate Transfer | After owner's death | Legal documentation |
| Emergency Vehicle | Police, fire, ambulance | ICBC documentation |
| Bankruptcy | Court-supervised | Court order |
Luxury Vehicle Surcharge in BC
BC applies an additional 8% PST on luxury vehicles priced over $100,000. Combined with the base 7% PST, luxury vehicles in BC pay 15% PST on the amount above $100,000, plus 5% GST.
Example: $150,000 luxury sedan in BC pays $1,500 GST + $3,500 base PST + $4,000 luxury PST = $9,000 in provincial taxes alone.
Disclaimer: BC PST rates and exemption rules change. Contact BC Finance and ICBC to verify current rates and eligibility before purchasing.