Ontario has one of the higher combined sales tax rates for vehicles in Canada at 13% HST In 2026, tax on used cars in ontario 2026 . Whether you are buying your first used car or upgrading to a newer model, understanding how HST applies to used car purchases in Ontario is essential for accurate budgeting.
For more information, visit the Used Car Tax Guide, Ontario Car Tax Guide.
tax on used cars in ontario 2026 — Ontario HST on Used Cars — 2026
Ontario harmonizes its provincial sales tax with the federal GST, creating a single 13% HST rate applied to all vehicle purchases:
- Federal portion: 5% GST
- Ontario provincial portion: 8% PST
- Combined HST rate: 13%
Unlike some provinces that have different rates for new versus used vehicles, Ontario applies the same 13% HST to all vehicle purchases regardless of the vehicles age or condition.
tax on used cars in ontario 2026 — Dealer vs Private Sale — HST Collection
Buying from a Dealer
When purchasing a used car from a licensed dealer in Ontario:
- The dealer collects HST at the time of sale
- HST is typically included in the advertised or negotiated price
- Dealer handles the registration transfer process
- You leave with plates and registration in your name
Buying Privately
When purchasing a used car from a private seller in Ontario:
- Seller does not collect HST — you pay it to ServiceOntario
- Bring your bill of sale to a ServiceOntario centre
- HST is calculated on the purchase price or the Motor Vehicle Dealers Association (MVDA) wholesale value, whichever is higher
- This prevents artificially low sale prices from reducing HST
- You cannot register the vehicle without paying applicable HST
tax on used cars in ontario 2026 — Used Car HST Examples — Ontario 2026
Ontario Used Car HST Examples — 2026
| Vehicle Type | Price Range | HST 13% | Total with Tax |
|---|---|---|---|
| Economy Compact | $12,000 - $18,000 | $1,560 - $2,340 | $13,560 - $20,340 |
| Midsize Sedan | $22,000 - $30,000 | $2,860 - $3,900 | $24,860 - $33,900 |
| Compact SUV | $28,000 - $40,000 | $3,640 - $5,200 | $31,640 - $45,200 |
| Luxury SUV | $55,000 - $80,000 | $7,150 - $10,400 | $62,150 - $90,400 |
tax on used cars in ontario 2026 — Ontario vs BC — Used Car Tax Comparison
Ontario and BC have similar combined tax rates for used car purchases but structure them differently:
- Ontario: 13% HST (5% GST + 8% PST combined) — single rate
- British Columbia: 12% combined (5% GST + 7% PST) — separate line items
For a $30,000 used car: Ontario HST = $3,900, BC GST+PST = $3,600. Ontario is slightly more expensive in absolute terms, though the difference is modest.
tax on used cars in ontario 2026 — Luxury Cars in Ontario — Additional Federal Tax
Used vehicles priced above $100,000 are also subject to the federal luxury car tax of 10% on the amount exceeding $100,000. For a $150,000 luxury used car in Ontario:
- HST 13%: $19,500
- Federal Luxury Tax 10% ($50,000 over threshold): $5,000
- Total tax: $24,500
- Total cost: $174,500
tax on used cars in ontario 2026 — Ontario Vehicle Registration Fees
Beyond HST, Ontario vehicle owners pay additional fees:
- Drive Clean: Emissions test required for vehicles model year 1998 and later
- License plate sticker: Annual renewal fee based on vehicle type and region
- UVIP (Used Vehicle Information Package): Required for private sales — approximately $20-$35
- ServiceOntario fee: Admin fee for registration transfer
Disclaimer: This article is for informational purposes only. Tax rates may change. Verify current Ontario HST rules at ontario.ca or consult a tax professional.
For official information, visit Canada Revenue Agency (CRA), BC Ministry of Finance.