A new luxury tax came into effect in Canada on September 1, 2022.
Luxury Tax Rate
The Luxury Tax will apply to certain vehicles, aircraft, and boats exceeding price thresholds of $100,000 for vehicles and aircrafts, and $250,000 for boats before GST/HST. The Luxury Tax rules will apply whether the Subject Item is delivered in Canada by way of sale or similar arrangement, certain lease arrangements , or by importation into Canada. The Luxury Tax will be determined as the lesser of:
10 percent of the total price; and
20 percent of the total price exceeding the price threshold.
The resulting Luxury Tax is then added to the cost of the Subject Item for the purposes of calculating the GST/HST. This results in GST/HST being calculated on the Luxury Tax. There are exceptions to this luxury tax. Contact Opengate to review your specific purchase.
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