Car Loan Glossary province

What is the sales tax on vehicle purchases in YT?

In Yukon (YT), the sales tax on vehicle purchases is exclusively the 5% Goods and Services Tax (GST). This is because the Yukon territory does not impose a provincial sales tax (PST) or a harmonized sales tax (HST), which simplifies the tax structure compared to many other Canadian jurisdictions. Therefore, whether you are acquiring a new vehicle directly from a dealership or a used vehicle from a GST-registered dealer, the 5% federal GST will be the only sales tax applied to the purchase price.

A key point for consumers to understand is that GST generally does not apply to private vehicle sales between individuals in Yukon, provided the seller is not a GST registrant. This distinction is significant as it can lead to substantial savings on used vehicle purchases when transacting privately versus through a dealership. This tax framework is a consistent feature of the Canadian market in territories like YT, Nunavut, and the Northwest Territories, and it is anticipated to remain unchanged through 2025. For consumers, this means vehicle purchases in Yukon can be more tax-efficient than in provinces with combined PST/GST or HST, making it crucial to factor in the seller type when budgeting for a vehicle.
Related Topics: province taxes yt

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