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What is the sales tax on vehicle purchases in ON in Canada?

In Ontario, the sales tax on vehicle purchases is 13% Harmonized Sales Tax (HST). This rate applies to both new and used vehicles when purchased from a registered dealership. The HST is a combined tax, consisting of the 5% federal Goods and Services Tax (GST) and the 8% provincial sales tax (PST).

A crucial distinction for consumers is that for used vehicles purchased through a private sale in Ontario, the 13% provincial sales tax (PST) portion is collected by ServiceOntario when the new owner registers the vehicle, rather than HST being charged at the point of sale. This tax significantly impacts the total cost of ownership, often adding thousands of dollars to the purchase price, and must be carefully factored into your budget. While certain exemptions may apply in specific circumstances, such as for Status Indians or vehicles modified for persons with disabilities, and government rebates for electric vehicles exist, the 13% tax is a standard and unavoidable component of most vehicle transactions in the province.
Related Topics: on province taxes

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