Ontario buyers of luxury vehicles face a significant tax burden from two layers: the standard 13% HST and the federal Select Luxury Items Tax (SLIT) of 10% on amounts above $100,000. This article breaks down the total tax cost for luxury vehicle purchases in 2025.
Ontario Luxury Car Tax — Two Layers
Luxury vehicle purchases in Ontario are taxed at two levels:
- 13% HST: Applied to the full purchase price (standard rate for all vehicles)
- 10% Federal SLIT: Applied only to the portion above $100,000
Ontario Luxury Car Tax Calculator
Ontario Luxury Car Tax Calculator — 2025
| Vehicle Price | HST (13%) | SLIT (10% over $100K) | Total Tax |
|---|---|---|---|
| $60,000 | $7,800 | None | $7,800 |
| $80,000 | $10,400 | None | $10,400 |
| $100,000 | $13,000 | None | $13,000 |
| $120,000 | $15,600 | $2,000 | $17,600 |
| $150,000 | $19,500 | $5,000 | $24,500 |
| $200,000 | $26,000 | $10,000 | $36,000 |
| $250,000 | $32,500 | $15,000 | $47,500 |
How the Federal Luxury Tax Works
The Select Luxury Items Tax (SLIT) applies to the amount above the $100,000 threshold:
- $110,000 vehicle: 10% x $10,000 = $1,000 SLIT
- $130,000 vehicle: 10% x $30,000 = $3,000 SLIT
- $150,000 vehicle: 10% x $50,000 = $5,000 SLIT
BC Luxury Tax vs Ontario
| Province | Standard Tax | Luxury Surcharge |
|---|---|---|
| Ontario | 13% HST | 10% federal on amount over $100K |
| BC | 12% GST+PST | +8% PST + 10% federal SLIT |
| Quebec | 14.975% GST+QST | 10% federal on amount over $100K |
| Alberta | 5% GST only | 10% federal on amount over $100K |
Which Vehicles Are Exempt from Luxury Tax?
- Vehicles with GVWR above 3,856 kg (8,500 lbs) — trucks and cargo vans are often exempt
- Emergency vehicles, ambulances
- Purpose-built commercial vehicles
- Motorhomes and self-contained vehicles (may qualify)
Disclaimer: Luxury tax thresholds and rates are set federally. Verify with the Canada Revenue Agency or Department of Finance for current rates.