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What is the sales tax on vehicle purchases in QC?
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Car Loan Glossary • province

What is the sales tax on vehicle purchases in QC?

In Quebec, the sales tax on vehicle purchases involves a two-tiered system, comprising both federal and provincial components. Consumers are subject to the 5% federal Goods and Services Tax (GST) and the 9.975% provincial Quebec Sales Tax (QST), which are applied sequentially, resulting in a combined effective sales tax rate of 14.975% on the vehicle's purchase price. This comprehensive rate applies to all new vehicle acquisitions and used vehicles purchased from a registered automotive dealer. A critical distinction for consumers, however, is that for used vehicles acquired through a private sale in Quebec, only the 9.975% QST is typically levied on the purchase price, as GST does not generally apply to transactions between private individuals. Understanding this specific provincial nuance is paramount for accurate financial planning, as sales taxes represent a significant additional cost beyond the vehicle's sticker price. Furthermore, prospective buyers should research available federal and provincial rebates for eligible electric or plug-in hybrid vehicles, as these incentives can substantially reduce the net cost of ownership, effectively mitigating a portion of the tax burden.

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Related Topics: province qc taxes

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