Short answer: BC charges PST on passenger vehicles at 7% to 20% depending on the price. Buying from a dealer: 7% under $55,000, rising to 10% from $57,000, 15% from $125,000 and 20% from $150,000. One rate applies to the whole price, so crossing a threshold costs more than the price difference. Zero-emission vehicles get higher thresholds below $125,000.
Buying a pre-owned luxury car in British Columbia comes with one cost that surprises people more than any other: the provincial sales tax. On passenger vehicles, PST isn’t a flat 7%. The rate climbs with the price of the car, and crossing a price threshold by a single dollar can change the tax on the whole purchase. Here’s how it works in 2026, with the official rate tables and a few examples.
The PST rates on passenger vehicles
These are the rates ICBC publishes for gas, diesel and hybrid passenger vehicles. “Dealer” means you bought from a GST-registered business such as a dealership. The same column applies to leased and imported vehicles.
| Purchase price | From a dealer | Private sale |
|---|---|---|
| Under $55,000 | 7% | 12% |
| $55,000 to $55,999.99 | 8% | 12% |
| $56,000 to $56,999.99 | 9% | 12% |
| $57,000 to $124,999.99 | 10% | 12% |
| $125,000 to $149,999.99 | 15% | 15% |
| $150,000 and over | 20% | 20% |
Two things stand out for luxury buyers. Above $125,000 the dealer and private-sale rates are the same, so buying privately doesn’t save tax at the top of the market. And the rate for the band applies to the whole price, not just the portion above the threshold.
Why the thresholds matter
Because one rate covers the whole price, the jump between bands is a cliff, not a slope. Two dealer purchases show the effect:
- A car priced at $124,000 falls in the 10% band: PST of $12,400.
- A car priced at $126,000 falls in the 15% band: PST of $18,900.
That’s $6,500 more tax on a car that costs $2,000 more. The same thing happens at $150,000, where the rate jumps from 15% to 20%. When you’re comparing two cars near a threshold, compare the price after tax, not the sticker.
Electric vehicles have higher thresholds
Zero-emission vehicles bought after February 22, 2022 get a more generous table below $125,000. When you buy from a dealer, an EV is taxed at 7% up to $75,000, then 8% and 9% through $76,999.99, and 10% from $77,000 to $124,999.99. From $125,000 up, EVs pay the same 15% and 20% as everything else. Battery-electric, hydrogen fuel cell and approved plug-in hybrid vehicles count as zero-emission. Regular hybrids don’t.
Buying privately: the Black Book rule
On a private sale, PST is calculated on the purchase price or the vehicle’s average wholesale value in the Canadian Black Book, whichever is greater. A low price written on the bill of sale doesn’t lower the tax. You’ll pay PST when you register and insure the car at an Autoplan broker.
Trade-ins can reduce the taxable amount
The province’s PST bulletin on vehicles says the value of a trade-in may reduce the taxable purchase price. If you’re replacing a car, trading it in on the next one can lower the amount PST is charged on. That’s worth weighing against a private sale of your old car. (It doesn’t apply to leases: a trade-in doesn’t reduce the PST on a lease.)
GST is separate
When you buy from a dealer, 5% GST also applies on top of PST. On a private sale between individuals there’s no GST, but the higher private-sale PST rates above apply.
What this means in practice
- Ask for the out-the-door price, with PST and GST included, before you compare two cars.
- Near $125,000 or $150,000, check which band the car falls in. A small price difference can mean thousands in tax.
- If you have a car to replace, get a trade-in number before deciding to sell privately.
- If you’re looking at an EV under $125,000, check the zero-emission table, not the regular one.
Our team can run the exact numbers on any car in our inventory, including your trade-in and financing. Call 604-510-5060 or send an inquiry below.
Rates checked November 2026 against ICBC’s PST on vehicles page and the Province of BC’s PST Bulletin 308 (revised August 2026). Where they differ, the Ministry of Finance bulletin applies.
Frequently asked questions
What is the PST on a $130,000 used car in BC?
From a dealer, a vehicle priced between $125,000 and $149,999.99 is taxed at 15%, so PST on $130,000 is $19,500. GST of 5% also applies on a dealer purchase.
Is PST lower if I buy a luxury car privately?
Not at the top of the market. From $125,000 up, the private-sale rates (15% and 20%) match the dealer rates. Below that, private sales are taxed at 12%, and PST is based on the price or the Canadian Black Book average wholesale value, whichever is greater.
Does a trade-in reduce PST in BC?
On a purchase, the province’s PST bulletin says the value of a trade-in may reduce the taxable purchase price. On a lease, it doesn’t.
Do electric vehicles pay less PST in BC?
Below $125,000, yes in some price ranges: zero-emission vehicles have higher thresholds (7% up to $75,000 from a dealer). From $125,000 up, EVs pay the same 15% and 20% as other vehicles.
Published by Exclusive Motor Group, 19368 Fraser Hwy, Surrey, BC. This article is general information, not legal, tax or financial advice. Ask our team about your situation.
