Ontario Car Tax Guide 2026: HST, Fees and Total Vehic —

Ontario has one of the highest combined vehicle sales tax rates in Canada at 13% HST In 2026, tax on cars in ontario 2026 . Whether you are buying a new car, a used vehicle, or registering a fleet, understanding Ontario car tax in 2026 helps you budget accurately and avoid surprises.

For more information, visit the Car Tax Calculator.

tax on cars in ontario 2026 — Ontario Vehicle Tax Rate — 2026

Ontario harmonized its provincial sales tax with the federal GST in 2010, creating the Harmonized Sales Tax (HST) system:

• Federal GST: 5%
• Ontario PST: 8%
• Combined HST: 13%

Ontario applies the same 13% HST to both new and used vehicles, with no special lower rate for used car purchases as some provinces have.

tax on cars in ontario 2026 — Ontario HST on New vs Used Cars

tax on cars in ontario 2026 — Dealer vs Private Sale in Ontario

Buying from a Dealer

Ontario dealers collect HST at the time of sale and include it in the transaction. The dealer handles the registration paperwork and you typically leave with plates and registration in your name.

Buying Privately

When buying a used car privately in Ontario:

• The seller does not collect HST
• You pay HST directly to ServiceOntario
• HST is calculated on the purchase price or the MVDA wholesale value, whichever is higher
• Bring your bill of sale to a ServiceOntario centre
• Vehicle cannot be registered without paying applicable HST

tax on cars in ontario 2026 — Federal Luxury Tax in Ontario

Vehicles priced above $100,000 are subject to the federal luxury car tax of 10% on the amount exceeding the threshold. This applies on top of Ontario 13% HST.

For a $150,000 luxury vehicle in Ontario: HST ($19,500) + Federal Luxury Tax ($5,000) = $24,500 total taxes. The total cost including tax would be $174,500.

tax on cars in ontario 2026 — Ontario EV Rebate Status

The Ontario provincial EV rebate was cancelled in 2025. Federal EV incentives through Transport Canada may still be available — check the official Transport Canada website for current programs.

tax on cars in ontario 2026 — Ontario Registration Fees

Beyond HST, Ontario vehicle costs include:

• License plate sticker: Annual fee based on vehicle type and region
• Drive Clean: Emissions test for vehicles 1998 and newer (approximately $30-$45)
• UVIP (Used Vehicle Information Package): Required for private sales — approximately $20-$35
• ServiceOntario admin fee: Charged at registration

Disclaimer: This article is for informational purposes only. Tax rates may change. Verify current Ontario vehicle tax rules at ontario.ca or consult a tax professional.

For official information, visit Manitoba Provincial Sales Tax, Transport Canada.

Key Points to Remember

When planning your vehicle purchase, it is important to consider all applicable taxes and fees. Provincial sales tax rates, federal goods and services tax, and any luxury taxes on high-value vehicles can significantly affect the total cost. Research your specific province and vehicle type before making a purchase decision.

Common Questions

Many vehicle buyers have questions about tax rates and exemptions. Understanding when provincial sales tax applies, how trade-in values affect the tax base, and which vehicle types qualify for exemptions can save you thousands of dollars. Consult your provincial vehicle registry or a tax professional for specific advice.

When purchasing a vehicle, it is important to understand all applicable taxes and fees in your province or state. Provincial and federal taxes can add significant costs to your vehicle purchase. Research current rates, exemptions, and registration requirements before buying.

When purchasing a vehicle, it is important to understand all applicable taxes and fees in your province or state. Provincial and federal taxes can add significant costs to your vehicle purchase. Research current rates, exemptions, and registration requirements before buying.