Most used cars bought in British Columbia carry 12% Provincial Sales Tax in a private sale, or 7% PST plus 5% federal GST when bought from a dealer. The province calculates that tax on whichever is higher: the price you actually paid, or the vehicle’s average wholesale value in the Canadian Black Book. Rates climb on passenger vehicles priced above $55,000 and reach 20% at $150,000 and up.
Private Sale Rates
When you buy from another individual rather than a dealership, no GST applies. The province charges PST at graduated rates that depend on the price and whether the vehicle qualifies as a passenger vehicle (cars, SUVs, and trucks or vans rated at three-quarter ton or less).1Government of British Columbia. PST on Vehicles
For passenger vehicles in a private sale:
- Under $55,000: 12%
- $55,000 to $55,999: 8%
- $56,000 to $56,999: 9%
- $57,000 to $124,999: 10%
- $125,000 to $149,999: 15%
- $150,000 and over: 20%
The drop from 12% to 8% at $55,000 surprises people. It exists to keep private-sale and dealer-sale burdens roughly aligned at that threshold, with surtaxes layered on at the top end.2ICBC. PST on Vehicles
Non-passenger vehicles, including trucks over three-quarter ton, motor homes, buses, and motorcycles of 250 cc or less, follow a simpler structure: 12% below $150,000, and 20% at $150,000 and above.1Government of British Columbia. PST on Vehicles
Dealer Rates
Buying from a GST-registered dealer means paying 5% GST plus PST. The PST rate starts lower because the GST already carries part of the load. For non-ZEV passenger vehicles from a dealer, PST runs 7% below $55,000, then follows the same 8%, 9%, 10%, 15%, and 20% brackets as a private sale as the price climbs. Add 5% GST at every bracket.2ICBC. PST on Vehicles
On a $40,000 used car from a dealer, you pay 7% PST ($2,800) plus 5% GST ($2,000), for $4,800 total. The same car in a private sale costs $4,800 in PST alone, so the total is identical at that price point. The math shifts higher up. A $100,000 used SUV from a dealer costs 10% PST ($10,000) plus 5% GST ($5,000), totaling $15,000. Bought privately, the same vehicle carries $10,000 in PST and no GST. Non-passenger vehicles from a dealer pay a flat 7% PST regardless of price, plus 5% GST.2ICBC. PST on Vehicles
Zero-emission vehicles get a more generous threshold when purchased from a dealer: the 7% bracket runs up to $75,000 rather than $55,000, before the same 8%, 9%, 10%, 15%, and 20% steps apply.2ICBC. PST on Vehicles BC used to exempt used ZEVs from PST entirely, but that exemption ended on April 30, 2025.3Vehicle Sales Authority of BC. VSA Dealer Alert – March 5, 2025 Used EVs bought after that date pay the standard graduated rates.
How The Taxable Value Is Set
Since October 1, 2022, PST on a private sale is calculated on whichever is higher: the price you paid or the vehicle’s average wholesale value from the Canadian Black Book.1Government of British Columbia. PST on Vehicles The rule stops buyers and sellers from writing a low number on the transfer form to shrink the tax. Pay $8,000 for a car the Black Book values at $11,000 and you owe PST on $11,000.
If the vehicle is genuinely worth less than the Black Book figure (rough condition, accident history, high mileage), you can get a professional appraisal to establish its actual value. The appraisal must come from a motor vehicle dealer registered under BC’s Motor Dealer Act, or from an independent professional whose business is appraising vehicles. The appraised value represents expected private retail value, not a trade-in figure.4Government of British Columbia. British Columbia Motor Vehicle Appraisal Form
Bring the appraisal when you register. If you’ve already registered and paid tax based on the Black Book value, you can apply for a refund using form FIN 355/MV, but the Ministry of Finance must receive both the refund application and the appraisal within 30 days of the registration date.4Government of British Columbia. British Columbia Motor Vehicle Appraisal Form Miss that window and you lose the chance to lower the assessment.
Trade-Ins
Trading in a vehicle at a dealer reduces the taxable amount, but it does not change the PST rate. The rate is set by the full purchase price before the trade-in; the trade-in value then comes off the amount you pay tax on.5Government of British Columbia. PST 116 – Motor Vehicle Dealers and Leasing Companies
Three conditions apply. The dealer must accept the trade-in at the same time they sell you the replacement vehicle, with the trade-in value shown on the sales agreement. You must own the trade-in. And you must have previously paid an applicable provincial sales tax on it. A trade-in still on out-of-province plates with no proof of BC PST paid won’t be deducted.5Government of British Columbia. PST 116 – Motor Vehicle Dealers and Leasing Companies
In practice: buy a $60,000 used SUV and trade in a car valued at $15,000. The PST rate is 10% (set by the $60,000 price), but you pay that 10% on $45,000. PST comes to $4,500 instead of $6,000. GST at 5% is calculated the same way, on the net amount after the trade-in.
Vehicles Bought Outside BC
Buy a vehicle in another province or import one and you still owe PST when you register it in BC. The rates match the dealer-sale schedule, not the private-sale schedule, even if the out-of-province purchase itself was private.2ICBC. PST on Vehicles The Canadian Black Book comparison still applies.
If you’re moving to BC and bringing a vehicle you already own, the new-resident exemption may cancel the PST entirely. You must be bringing it solely for personal (not business) use, the vehicle must enter BC within one year of you becoming a resident, and you must have owned it for at least 30 continuous days before becoming a BC resident.6Government of British Columbia. PST 306 – Goods Brought Into BC by New Residents A vehicle registered under a business name is presumed to be for business use and won’t qualify unless you can prove otherwise.
Gifts Between Family Members
A vehicle received as a gift from a related individual can be PST-exempt. The donor must be a “qualifying donor,” meaning they previously paid an applicable provincial sales tax on the vehicle: BC PST, the former BC social service tax, the provincial portion of HST, or another province’s sales tax. A vehicle bought in a province with only GST, such as Alberta, generally doesn’t qualify.7Government of British Columbia. PST 312 – Gifts
“Related individual” is broad: spouses (including common-law partners of at least two years), parents, grandparents, great-grandparents, children, grandchildren, siblings, and in-laws at various levels. Only one tax-free gift of the same vehicle between related individuals is allowed in any 12-month period. Taking over someone’s car loan is not a gift; PST applies to the outstanding loan balance.8Government of British Columbia. Gift of a Vehicle
When And Where You Pay
PST is due at the time you register the vehicle. BC law requires the buyer to deliver the transfer paperwork to ICBC within 10 days of the sale.9British Columbia Laws. Motor Vehicle Act You handle it at any Autoplan broker with the completed Transfer/Tax Form (APV9T) and the seller’s signed registration portion. ICBC recommends buyer and seller go together.10ICBC. Sell a Used Vehicle If a dealer handled the sale, the dealer collects both PST and GST at the point of sale.
Knowing the purchase price and the Canadian Black Book wholesale value before you walk in means no surprises when the broker calculates your tax.