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

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

In Saskatchewan, vehicle purchases are subject to both federal and provincial sales taxes, totaling 11% in most cases. The federal Goods and Services Tax (GST) is 5% and applies universally across Canada. The provincial sales tax (PST) in Saskatchewan is 6%.

For new vehicles purchased from a dealership, both the 5% GST and 6% PST are applied to the full purchase price. Similarly, when purchasing a used vehicle from a licensed dealer in Saskatchewan, both the 5% GST and 6% PST are levied. A key provincial nuance is that the 6% PST is calculated on the net price after any trade-in allowance, while the 5% GST is typically applied to the gross purchase price before trade-in.

A significant distinction for consumers arises with private vehicle sales in Saskatchewan: only the 6% PST is applicable, calculated on the purchase price. The 5% GST does not apply to private used vehicle sales, as it would have been collected on the vehicle's initial sale or import. Understanding these distinctions is critical for consumers, as it directly impacts the total out-of-pocket cost, helps in accurate budgeting, and allows for informed comparisons between purchasing from a dealer versus a private seller, potentially saving thousands of dollars.

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