1. SkipCarDealer
  2. Glossary
  3. Explain the sales tax on vehicle purchases in MB?
Explain the sales tax on vehicle purchases in MB?
Open Your Account
Car Loan Glossary • mb

Explain the sales tax on vehicle purchases in MB?

In Manitoba, vehicle purchases are subject to two primary sales taxes: the federal Goods and Services Tax (GST) at 5% and the provincial Retail Sales Tax (RST), commonly referred to as PST, at 7%. This results in a combined sales tax rate of 12% applied to the majority of vehicle transactions within the province.

The specific application of these taxes depends on the nature of the sale. For new vehicles purchased from a dealership, both the 5% GST and 7% PST are applied to the full purchase price. Similarly, when acquiring a used vehicle from a licensed dealership, both the 5% GST and 7% PST are typically levied. However, a key provincial nuance for consumers is that if a used vehicle is purchased through a private sale in Manitoba, only the 7% PST is applicable to the purchase price; the 5% GST does not apply in such instances.

Understanding these tax implications is vital for consumers, as sales taxes represent a significant addition to the overall cost of a vehicle, directly impacting the total amount to be financed and, consequently, monthly payments. It is crucial to factor these taxes into your budgeting, noting that taxes are generally calculated on the net price after any trade-in allowance or manufacturer rebates, which can help reduce the overall taxable amount and make the purchase more manageable.

References:

Related Topics: mb province taxes

Related Financial Terms

Explain an auto loan APR in Canada?

The Annual Percentage Rate (APR) on an auto loan in Canada represents the true, total annu...
Explain the Bank of Canada policy interest rate used for car loans?

The Bank of Canada's policy interest rate, hypothetically at 2.75% as of July 30, 2025, is...
Do I pay sales tax on a car loan?

In Canada, you do not pay sales tax directly on the interest portion of your car loan. Ins...
Do I pay sales tax on a car loan in Canada?

In Canada, you absolutely pay sales tax when purchasing a vehicle, but it's crucial to und...

Need more help?

Explore our full glossary or get in touch with our financing experts.

View Full Glossary
Search Glossary
Type a keyword and hit enter
Browse by Letter
A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
Popular Terms

Ready to get approved?

Skip the dealership hassle and get pre-approved for your car loan today.

Apply Now

With over 50 years of experience in the automotive industry, we know what we're doing when it comes to getting the best deals. We specialize in credit building and rebuilding, and with our expertise, we're sure to find a solution that suits you! Its our Skip Car Dealer Guarantee.

Credit Solutions

Loan Types

Programs

Partners

155-2 King Street West, Unit #107, Hamilton, ON, L8P 4S0 888-270-SKIP (7547)

PARTICIPATING LENDERS MAY VERIFY YOUR SOCIAL INSURANCE NUMBER, DRIVER'S LICENSE NUMBER, PROVINCIAL ID, OR ANY OTHER GOV IDENTIFICATIONS AND REVIEW YOUR INFORMATION AGAINST FEDERAL DATABASES TO INCLUDE BUT NOT LIMITED TO EQUIFAX, TRANSUNION, AND EXPERIAN TO DETERMINE CREDIT WORTHINESS, CREDIT STANDING AND/OR CREDIT CAPACITY. BY SUBMITTING YOUR APPLICATION AND INFORMATION ON THIS WEBSITE, YOU AGREE TO ALLOW ANY AND ALL PARTICIPATING LENDERS TO VERIFY YOUR INFORMATION AND CHECK YOUR CREDIT. SKIP CAR DEALER FOLLOWS BEST PRACTICES OF THE CANADIAN FAIR TRADING ACT OF 1999. ALL FINANCE IS SUBJECT TO EMPLOYMENT STATUS AND INCOME. APPLICANTS MUST BE 18 OR OVER, TERMS AND CONDITIONS APPLY, GUARANTEES AND INDEMNITIES MAY BE REQUIRED. WE CAN INTRODUCE YOU TO A NUMBER OF FINANCE PROVIDERS BASED ON YOUR CREDIT RATING. WRITTEN QUOTATION ON REQUEST.

This site uses cookies so that we can provide you with the best user experience. By continuing to use the site you are consenting for cookies to be used. Further information on cookies and how you can disable them is available on our cookie policy.

Copyright © 2020 Skip Car Dealer All Rights Reserved.

Terms of use | Privacy Policy

Top