Canada’s Federal Luxury Tax: Why Our Vehicles Are Exempt!

November 9th, 2022

Does the new Canadian Federal Luxury Items Tax apply to the vehicles we sell?

The short answer is NO! 🇨🇦

We’ve been getting this question a LOT so here’s a quick breakdown!

Canada recently introduced a federal 10% luxury tax on goods such as new vehicles, aircraft, and boats manufactured after 2018 and exceeding certain price thresholds.

In our case, the luxury tax ONLY applies to vehicles over $100,000 that have never been registered in Canada ie. brand new vehicles from the manufacturer.
If the vehicle is being imported from another country the luxury tax only applies if vehicle is over $100,000 and newer than 2018.

That means that in the MAJORITY of cases, the luxury tax would not apply to any of the vehicles we sell!
Please note that if the vehicle is being registered in British Columbia, it is still subject to the provincial luxury tax brackets.


Give us a call at 250-860-0444 or contact us here for more details!