Buying a used car in Ontario requires paying 13% HST on the purchase. This applies to both dealer and private sales, making the total cost of a used vehicle significantly higher than the advertised price.
13% HST on All Ontario Used Vehicles
Ontario charges a flat 13% Harmonized Sales Tax on all vehicle purchases. There is no special reduced rate for used vehicles — the rate is the same as for new vehicles.
The 13% HST breaks down as:
- 5% federal GST
- 8% Ontario Provincial Sales Tax (PST)
HST on Dealer vs Private Used Car Sales
Ontario Used Car Tax — Dealer vs Private
| Aspect | Dealer Sale | Private Sale |
|---|---|---|
| HST Rate | 13% included | 13% paid at ServiceOntario |
| Who remits HST | Dealer to CRA | Buyer to ServiceOntario |
| MVDA assessed value | Dealer uses market value | ServiceOntario checks MVDA |
| Bill of sale required | Invoice provided | Required — original signed copy |
| Warranty/Protection | Often included | As-is purchase |
MVDA Value — The Minimum Tax Base
ServiceOntario uses the MVDA assessed value (a wholesale market value) to determine the minimum taxable amount. If your purchase price is below the MVDA value, HST is calculated on the MVDA value instead.
Example: You buy a used car for $8,000 privately. ServiceOntario MVDA value is $12,000. You pay 13% HST on $12,000 ($1,560), not on your $8,000 purchase price.
How to Pay HST on a Private Used Car Sale in Ontario
- Get the signed original bill of sale from the seller
- Visit a ServiceOntario centre with the vehicle
- Pay the HST based on purchase price or MVDA value (whichever is higher)
- Register the vehicle and receive your plate stickers
You cannot register a vehicle without paying the HST. The seller is responsible for notifying ServiceOntario of the sale.
Total Cost Example
A $15,000 used car in Ontario:
- Purchase price: $15,000
- HST (13%): $1,950
- ServiceOntario registration fee: ~$50-$150
- Plate sticker: Based on vehicle type
- Total: ~$17,100+
Disclaimer: HST rates and registration procedures are current for 2025. MVDA assessed values are updated regularly. Verify with ServiceOntario before purchase.