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

In Quebec, the sales tax on vehicle purchases is a combination of two distinct taxes: the federal Goods and Services Tax (GST) and the provincial Quebec Sales Tax (QST). The GST is applied at a rate of 5% on the purchase price of the vehicle. Subsequently, the QST is applied at a rate of 9.975% on the price *including* the GST, leading to an effective combined tax rate of 14.975% on the total transaction.

This comprehensive tax structure applies to both new and used vehicles when purchased from a licensed dealer. However, a critical provincial nuance for consumers arises with private sales between individuals: in such cases, only the QST applies, and it is calculated on the *greater* of the actual purchase price or the vehicle's estimated value as determined by the Société de l'assurance automobile du Québec (SAAQ). This distinction is vital for budgeting, as it can significantly alter the final cost.

Furthermore, Canadian and Quebec provincial regulations actively promote green vehicle adoption through various incentives, such as rebates for eligible electric vehicles (EVs) and plug-in hybrids (PHEVs). These rebates are typically applied *before* the sales tax calculation, effectively reducing the taxable amount and the overall financial outlay. Understanding these intricate tax applications and available rebates is paramount for consumers, as sales tax represents a substantial component of the total vehicle acquisition cost, directly impacting financing needs and the affordability of different vehicle options in the dynamic Canadian market.