Ontario has one of the higher combined sales tax rates for vehicles in Canada at 13% HST. 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.
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.
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
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 |
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.
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
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.