In British Columbia, the sales tax on vehicle purchases primarily consists of two components: the 5% federal Goods and Services Tax (GST) and the provincial Sales Tax (PST). When purchasing from a licensed dealer, you will pay 5% GST on the vehicle's purchase price, plus PST. The PST rate in BC is not a flat 7% for all vehicles; it starts at 7% for vehicles up to $54,999, but progressively increases for higher-value vehicles, reaching up to 20% for those over $150,000, reflecting a luxury tax component. For private sales, only PST is typically applicable, calculated on the greater of the purchase price or the vehicle's wholesale value, ensuring fair taxation and preventing undervaluation. This tax structure applies to both new and used vehicles, whether purchased from a dealership or through a private transaction, though the specific calculation method for PST can differ. It's crucial for consumers to