Question 1

What is the luxury tax in Canada?

Accepted Answer

The luxury tax in Canada is a federal tax applied to cars, boats, and planes priced above certain thresholds. It is calculated as the lesser of 10% of the total price or 20% of the amount over the threshold.

Question 2

How do I calculate luxury tax?

Accepted Answer

Use our luxury tax calculator to determine the exact amount of luxury tax for your purchase. Simply enter the price, select the item type, and choose your province or territory.

Luxury Tax Calculator Canada

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Tax Breakdown