Ontario has one of the highest combined sales tax rates on used cars in Canada at 13% HST. Whether you are buying your first vehicle or upgrading, understanding Ontario sales tax on used cars in 2025 is essential for accurate budgeting and avoiding surprises at the ServiceOntario counter.
Ontario Sales Tax on Used Cars — 2025
Ontario applies the Harmonized Sales Tax (HST) to all vehicle purchases:
- Federal portion: 5% GST
- Ontario provincial portion: 8% PST
- Combined HST rate: 13%
Ontario does not have a reduced rate for used cars — the same 13% HST applies whether the vehicle is new, used, or certified pre-owned.
When Is HST Collected?
Ontario Used Car HST — Dealer vs Private Sale
| Seller Type | HST Collection | When Paid |
|---|---|---|
| Licensed Dealer | Dealer collects HST at sale | At purchase |
| Private Seller | No HST collected by seller | At ServiceOntario registration |
Private Sales — HST Calculation
When buying a used car privately in Ontario:
- The seller does not collect HST
- You pay 13% HST to ServiceOntario when registering
- HST is calculated on the purchase price OR the MVDA wholesale value, whichever is higher
- Bring your bill of sale to a ServiceOntario centre
- You cannot register the vehicle without paying applicable HST
This provision prevents buyers from reducing HST by claiming an artificially low purchase price. The Motor Vehicle Dealers Association (MVDA) publishes wholesale value guides used as reference.
Ontario Used Car Sales Tax Examples — 2025
Ontario Used Car HST Examples — 2025
| 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 | $20,000 - $28,000 | $2,600 - $3,640 | $22,600 - $31,640 |
| Compact SUV | $28,000 - $40,000 | $3,640 - $5,200 | $31,640 - $45,200 |
| Luxury SUV ($100K+) | $55,000 - $80,000 | $7,150 - $10,400 | $62,150 - $90,400 |
Additional Federal Luxury Tax
Vehicles priced above $100,000 are subject to the federal luxury car tax of 10% on the amount exceeding the threshold. This applies on top of Ontarios 13% HST.
For a $150,000 luxury used car in Ontario: HST ($19,500) + Federal Luxury Tax ($5,000) = $24,500 total taxes. Total cost: $174,500.
Exemptions and Special Cases
- Family transfers: May have different treatment under Ontario family law provisions
- Court orders: Transfers following relationship breakdowns may qualify for exemptions
- Estate transfers: Vehicle transfers following death may have specific provisions
- EV rebate: The Ontario provincial EV rebate was cancelled in 2025; federal programs may apply
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.