Stop the Sticker Shock: Your Simple Guide to the 13% Tax on a Car in Ontario
Buying a vehicle is an exciting step, but for residents of Ontario, there's one number that always causes a major headache: the sales tax. Whether you're purchasing brand new or checking out taxes on used cars , you must budget for a flat 13% sales tax . Understanding vehicle tax in Ontario is the single best way to avoid a surprise when you finally go to register your new ride. Here is a simple, direct guide to everything you need to know about the tax on a car in Ontario . The Bottom Line: What is the 13% Tax on a Car in Ontario? The standard tax rate you will pay is 13% . This tax is known as the Harmonized Sales Tax (HST), which combines the federal 5% GST and the provincial 8% PST. The primary difference for buyers isn't the rate—it's who you pay and when you pay it: Who You Buy From Tax Paid When It's Paid A Registered Dealership HST (13%) Paid directly to the dealer at the point of sale. A Private Seller Retail Sales Tax (RST) (13%) Paid to ServiceOntar...