New Luxury Tax in Canada

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Canada is introducing more taxes! Who would have thought?

If you're here for long enough, this is certainly not a surprise.
Now, they're targeting luxury goods, and if you own some of those you may be hit with some additional taxes!

Canada is to impose new luxury tax on sale and importation of luxury cars, boats and planes. Coming into effect on 1 September 2022, the Select Luxury Items Tax Act is billed as part of the Government of Canada’s commitment to a fairer tax system.

The new luxury levy targets certain vehicles and aircraft priced above CA$100,000 (€76,400) and certain boats priced above CA$250,000 (€191,000). It will be calculated at 10 per cent of the full retail value of the vehicle, aircraft or vessel, or 20 per cent of the value above the threshold.

The tax will only apply to new vehicles purchased by consumers for personal use. It will apply retrospectively to most sales made after 1 January 2022.

Canada’s luxury tax aims to make things fairer for taxpayers, ensuring that “those Canadians who can afford to buy luxury goods are contributing a little more,” according to a statement on the Government of Canada’s website.

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