What taxes apply to the purchase of a used vehicle in Quebec?
August 18 2026,
In Quebec, buying a pre-owned vehicle from a dealer is subject to the 5% GST and the 9.975% QST. The calculation of taxes on a used car works as follows: the GST is calculated on the sale price, while the QST generally applies to the higher amount between the price paid and the vehicle's estimated value. For a purchase between private parties who are not tax registrants, only the calculation of QST is usually payable to the SAAQ.
Summary
Summary
In Quebec, buying a pre-owned vehicle from a dealer is subject to the 5% GST and the 9.975% QST. The calculation of taxes on a used car works as follows: the GST is calculated on the sale price, while the QST generally applies to the higher amount between the price paid and the vehicle's estimated value. For a purchase between private parties who are not tax registrants, only the calculation of QST is usually payable to the SAAQ.
How is the QST calculated?
For taxes on a used vehicle, the 9.975% QST generally applies to whichever is higher: the agreed sale price or the vehicle's estimated value. This rule applies both when buying from a dealer and for certain transactions between private parties.
Sale price or estimated value?
The QST is calculated on the higher amount. If the price paid exceeds the vehicle's estimated value, the tax applies to the price paid. If the estimated value is higher, it is used to calculate the tax on a used car.
Exceptions
If the vehicle is damaged or shows abnormal wear, the QST may be calculated on a price lower than its estimated value. The buyer must then provide a report produced by a qualified appraiser, ideally within 10 business days following the purchase.
For a transaction between family members considered related by Revenu Quebec, the QST may instead be calculated on the agreed price, even if it is lower than the estimated value. An appropriate declaration must then be submitted to allow the SAAQ to calculate the tax on a used vehicle in Quebec.
Example of tax calculation on a pre-owned vehicle
Here's a simple example to help you understand the TPS and TVQ sales tax on a used vehicle in Quebec purchased at a pre-owned dealer.
Example with an Audi Q5 from our pre-owned inventory
Let's take an Audi Q5 and assume a sale price of $40,000. For this tax calculation on a used car, the 5% GST is calculated on the sale price. The 9.975% QST is calculated on the higher amount between that price and the vehicle's estimated value.
| Item | Amount |
|---|---|
| Sale price of the Audi Q5 | $40,000 |
| Estimated value of the vehicle | $42,000 |
| Amount used to calculate the GST | $40,000 |
| Amount used to calculate the QST | $42,000 |
| GST at 5% | $2,000 |
| QST at 9.975% | $4,189.50 |
| Total taxes | $6,189.50 |
| Total price with taxes | $46,189.50 |
This example assumes that the $40,000 sale price is lower than the estimated value ($42,000). Here is the same example, but with an estimated value lower than the sale price, which changes the total sales tax on the used vehicle:
| Item | Amount |
|---|---|
| Sale price of the Audi Q5 | $40,000 |
| Estimated value of the vehicle | $38,000 |
| Amount used to calculate the GST | $40,000 |
| Amount used to calculate the QST | $40,000 |
| GST at 5% | $2,000 |
| QST at 9.975% | $3,990 |
| Total taxes | $5,990 |
| Total price with taxes | $45,990 |
Remember that our experts are also here to help you determine the value of your vehicle as a trade-in, whether you are looking among the best SUVs for towing or a compact, agile sedan for city driving.
Can you reduce the taxes payable?
Taxes on buying a used car in Quebec are not negotiable, but certain situations provided for by law can reduce the calculation base. You must, however, provide the required documents and declare the actual price paid.
Situations provided for by law
For a tax on a used vehicle more than 10 years old in Quebec, age alone is not enough to eliminate the QST. If the vehicle is no longer listed in the guide used to establish its estimated value, the tax is generally calculated on the agreed price.
- A damaged vehicle or one with abnormal wear can be taxed on a price lower than its estimated value if a compliant appraisal report is provided;
- A tax on a used car sold between private parties may be calculated on the agreed price when the persons are considered related by Revenu Quebec, such as in a sale from father to son, for example;
- A vehicle traded in at a dealer can reduce the amount on which the GST and QST are calculated, for instance if you want to trade your sedan for one of the best used SUVs. Groupe Lauzon can facilitate this trade for you.
Mistakes to avoid
For any tax on a used vehicle, the contract must show the actual price paid. Declaring a lower amount does not guarantee savings, since the QST may still be calculated on the higher estimated value.
A false declaration can also lead to a review of the tax file, additional amounts to be paid, and other consequences provided by law. To avoid an error, keep the contract, proof of payment, and any applicable appraisal report.
Why buy your pre-owned vehicle from Groupe Lauzon?
At Groupe Lauzon, you can compare several makes and models in one place, get clear answers about financing, trade-in value, and the tax on pre-owned vehicles, then choose with confidence the vehicle that truly meets your needs.
Whether you are looking for a premium sedan, a certified model, or one of the best used 7-passenger SUVs, you benefit from personalized support before, during, and after the purchase. Come see the vehicles, get behind the wheel, and take a test drive. Your next pre-owned car is waiting.
FAQ
What taxes do I have to pay on a used vehicle in Quebec?
At a dealer, you generally pay the 5% GST and the 9.975% QST.
Do I have to pay the GST if I buy a used car from a private seller?
No, if the seller is a private party not registered for taxes. You must still pay the QST when the vehicle is transferred.
Why is the QST calculated on the vehicle's estimated value?
This rule prevents an artificially low declared price from reducing the tax. The QST generally applies to the higher of the price paid and the estimated value.
How do I calculate the taxes on a pre-owned vehicle?
At a dealer, calculate the GST on the sale price. Then calculate the QST on the higher of the sale price and the estimated value.
Are the taxes different at a dealer and with a private seller?
Yes. At a dealer, both the GST and QST generally apply. Between private parties who are not registrants, only the QST is usually payable.
