Canadian Vehicle Import Duties

If you are moving to Canada, and your vehicle is eligible for import, you need to be aware of the many Clearit customs duty rates and taxes you might have to pay:

IMPORT DUTY

When you import a non-NAFTA vehicle to Canada, it will be subject to a 6.1 percent tax. To clarify, a non-NAFTA vehicle is one that has been manufactured or assembled at least 55 percent in North America.  NAFTA vehicles are exempt from tariffs, duties, and taxes that are sold or purchased within Canada, the United States, and Mexico.

GOODS & SERVICES TAX

Anytime a used or new vehicle is imported to Canada, it could also be subject to a 5 percent GST.  This tax is due immediately upon bringing the vehicle across the border, payable to a Canadian Customs Agent.  Basically, this the very same sales tax you would pay if you had purchased the vehicle from a registered dealer in Canada.

PROVINCIAL SALES TAX

Once you have successfully imported your vehicle to Canada, you might also have to pay provincial sales tax when you go to register the vehicle. This tax can vary, depending upon the regulations of the province where you are registering the vehicle; it is quite similar to the differing registration requirements of each of the separate states in America.

AIR CONDITIONING TAX

Simply, this is a tax imposed on a vehicle that has been outfitted with air conditioning. The fee is $100 and it is immediately due at the time you cross the border.

EXCESS WEIGHT TAX

If your car weighs more than 4,425 lbs (2,007 kg), you might have to pay an excise tax.

GAS GUZZLER TAX

Finally, the Canadian Federal Government started to impose a gas guzzler tax, an excise tax on vehicles that are not fuel-efficient.  Obviously, this is intended to encourage not only the manufacture of fuel-efficient (eco-friendly) vehicles, but also their sale.  The tax went into effect on March 19, 2007 and describes a “fuel-inefficient” vehicle as one that has a weighted average fuel consumption rating of no less than 13 liters per 100 kilometers. This tax rate includes:

  • An additional $1,000 for vehicles with a consumption rating between 13 and 14 L per 100 km
  • An additional $2,000 for vehicles with a consumption rating between 14 and 15 L per 100 km
  • An additional $3,000 for vehicles with a consumption rating between 15 and 16 L per 100 km
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