Canada’s Luxury Tax – effective Sep 1, 2022
Canada’s Luxury Tax received Royal Assent on June 23, 2022. The tax will apply to new cars and aircraft with a retail sales price over $100,000 and to vessels over $250,000.
If you recently purchased a luxury vehicle that will be delivered or imported on or after September 1, 2022, you will be assessed the lesser of 20% of the value above $100,000 (for cars) and 10% of the full value of the vehicle.
The tax will apply to subject vehicles, subject vessels and subject aircraft delivered or imported on or after September 1, 2022.