Quebec has one of the most distinctive vehicle tax systems in Canada, combining the federal 5% GST with the Quebec Sales Tax (QST) at 9.975%. Understanding Quebec used car tax in 2025 is essential for buyers in the province, particularly given some of the unique provisions that exist compared to other Canadian provinces.
Quebec Used Car Tax Rate — 2025
Quebec applies two taxes to used car purchases:
- Federal GST: 5% — applies nationwide across Canada
- Quebec Sales Tax (QST): 9.975% — Quebecs provincial tax
- Combined rate: 14.975% on most vehicle purchases
Quebec does not have a separate PST like BC or Ontario. Instead, the QST applies broadly to goods and services including vehicle purchases. The QST rate of 9.975% is among the higher provincial rates in Canada.
Quebec Vehicle Dealer vs Private Sale Tax
When purchasing a used car from a dealer in Quebec, the dealer collects both GST and QST at the time of sale. The taxes are calculated on the purchase price and included in the total.
For private sales in Quebec, the buyer is responsible for remitting the applicable taxes. Quebec does not have a formal mechanism for private sellers to collect taxes — buyers should be aware of their obligations when purchasing privately.
The Quebec $1 Used Car Tax Loophole — What You Need to Know
You may have heard about a "Quebec $1 used car tax" provision. Here is the accurate information:
Quebec does have provisions related to nominal or low-value vehicle transfers, particularly in the context of family transfers. When a vehicle is transferred between certain family members, the transaction may be treated differently for tax purposes. However, this is not a blanket "$1 tax" rule that applies to all used car purchases.
The Quebec government has specific rules about:
- Family transfers: Transfers between spouses, parents, and children may have different tax treatment
- Donations: Donating a vehicle to a registered charity may generate a charitable tax receipt
- Estate transfers: Transfers following a death may have specific provisions
There is no general provision allowing a $1 used car purchase with minimal tax. Any vehicle transfer must reflect the fair market value for tax purposes, and the QST/GST apply based on that value.
Quebec Used Car Tax Examples — 2025
Quebec Used Car Tax Examples — 2025
| Vehicle Type | Price Range | GST (5%) | QST (9.975%) | Total Tax |
|---|---|---|---|---|
| Economy Compact | $12,000 - $18,000 | $600 - $900 | $1,197 - $1,796 | $1,797 - $2,696 |
| Midsize Sedan | $20,000 - $28,000 | $1,000 - $1,400 | $1,995 - $2,793 | $2,995 - $4,193 |
| Luxury Sedan | $50,000 - $80,000 | $2,500 - $4,000 | $4,988 - $7,980 | $7,488 - $11,980 |
Quebec vs Other Provinces — Used Car Tax Comparison
Quebec vs Other Provinces — $30,000 Used Car
| Province | Tax Rate | Tax on $30K |
|---|---|---|
| Quebec (GST+QST) | 14.975% | $4,493 |
| Ontario (HST) | 13% | $3,900 |
| BC (GST+PST) | 12% | $3,600 |
| Alberta (GST only) | 5% | $1,500 |
| Saskatchewan (GST+PST) | 11% | $3,300 |
Quebec Luxury Vehicle Tax
Quebec vehicles priced above $100,000 are also subject to the federal luxury car tax of 10% on the amount exceeding the threshold. This federal tax applies in addition to the 14.975% GST+QST. For a $150,000 used luxury car in Quebec: GST ($7,500) + QST ($14,963) + Luxury Tax ($5,000) = $27,463 total taxes.
Tips for Quebec Used Car Buyers
- Budget for 14.975%: Add this to your purchase price for accurate budgeting
- Verify family transfer rules: If buying from family, understand the tax implications
- Charitable donations: Donating a used car generates a tax receipt based on fair market value
- Dealer vs private: Dealers handle tax collection; private buyers must understand their obligations
Disclaimer: This article is for informational purposes only. Tax rates and rules may change. Verify current Quebec vehicle tax rules at revenuquebec.ca or consult a tax professional.