New Tax on luxury Cars in 2022 in Canada
Thread Starter
Senior Member
Joined: Jun 2011
Posts: 356
Likes: 103
2021 GLE 450
New Tax on luxury Cars in 2022 in Canada
It seems our government do not like us being able to buy cars over $100,000.00 starting January 1/22. They said," if you are fortunate enough, worked hard enough or are lucky enough to be able to buy a car/ recreation plane valued over $100,000.00 or a boat valued over $250,000, congratulations, as you will be paying us more tax." All amounts over these figures will be subject to a 20% tax. So, if your car is valued at $110,000.00, then you will pay an extra $2000.00.
Business should be pretty good in 2021 with people trying to beat the January 1/22 deadline. Now, this hasn't been passed in parliament yet but it will.
Toban
Business should be pretty good in 2021 with people trying to beat the January 1/22 deadline. Now, this hasn't been passed in parliament yet but it will.
Toban
Member
Joined: Nov 2020
Posts: 81
Likes: 23
From: Ontario
2023 Jeep Grand Cherokee Summit Reserve
It seems our government do not like us being able to buy cars over $100,000.00 starting January 1/22. They said," if you are fortunate enough, worked hard enough or are lucky enough to be able to buy a car/ recreation plane valued over $100,000.00 or a boat valued over $250,000, congratulations, as you will be paying us more tax." All amounts over these figures will be subject to a 20% tax. So, if your car is valued at $110,000.00, then you will pay an extra $2000.00.
Business should be pretty good in 2021 with people trying to beat the January 1/22 deadline. Now, this hasn't been passed in parliament yet but it will.
Toban
Business should be pretty good in 2021 with people trying to beat the January 1/22 deadline. Now, this hasn't been passed in parliament yet but it will.
Toban
Thread Starter
Senior Member
Joined: Jun 2011
Posts: 356
Likes: 103
2021 GLE 450
Yes, you are right as I chuckle. A F150 limited is close to $100,000.00. The words, lucky, fortunate got me going too but the one that really turned my crank was ‘congratulations’ you will pay more tax sarcastically.
The dealer is not happy and my general manager said it could have a huge affect on their business.
Toban
The dealer is not happy and my general manager said it could have a huge affect on their business.
Toban
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Joined: May 2018
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From: Boise
2024 GMC Canyon Denali..... 2018 Audi SQ5
I call it “Robin Hood” politics...tax the rich seems to be reasonable politically. That way Government doesn’t need to match spending to income like we all try to do as individuals. Somehow it seems OK to overspend with your hand in someone else’s pocket. We have a big dose of that trending in the US at present.
Super Member
Joined: Dec 2013
Posts: 630
Likes: 177
From: SW Ontario Canada
2020 GLS580, 2023 Corvette Z06
It seems our government do not like us being able to buy cars over $100,000.00 starting January 1/22. They said," if you are fortunate enough, worked hard enough or are lucky enough to be able to buy a car/ recreation plane valued over $100,000.00 or a boat valued over $250,000, congratulations, as you will be paying us more tax." All amounts over these figures will be subject to a 20% tax. So, if your car is valued at $110,000.00, then you will pay an extra $2000.00.
Business should be pretty good in 2021 with people trying to beat the January 1/22 deadline. Now, this hasn't been passed in parliament yet but it will.
Toban
Business should be pretty good in 2021 with people trying to beat the January 1/22 deadline. Now, this hasn't been passed in parliament yet but it will.
Toban
Further on the politics of vehicles, if we could just motivate politicians to get us a good Lemon Law like some of the best US states have!
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Joined: Jan 2020
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From: Fredericksburg, VA
2020 Mercedes GLE350 4Matic; 2023 Tesla Model Y
It seems our government do not like us being able to buy cars over $100,000.00 starting January 1/22. They said," if you are fortunate enough, worked hard enough or are lucky enough to be able to buy a car/ recreation plane valued over $100,000.00 or a boat valued over $250,000, congratulations, as you will be paying us more tax." All amounts over these figures will be subject to a 20% tax. So, if your car is valued at $110,000.00, then you will pay an extra $2000.00.
Business should be pretty good in 2021 with people trying to beat the January 1/22 deadline. Now, this hasn't been passed in parliament yet but it will.
Toban
Business should be pretty good in 2021 with people trying to beat the January 1/22 deadline. Now, this hasn't been passed in parliament yet but it will.
Toban
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Member
Joined: Nov 2020
Posts: 81
Likes: 23
From: Ontario
2023 Jeep Grand Cherokee Summit Reserve
It’s a one time tax, in addition to our harmonized sales tax which is 13% in my province. Outside of property taxes, which fund municipal and educational services, we don’t have taxes on other assets. Plenty of income tax is paid though, I can tell you that much!!
Out Of Control!!
Joined: Nov 2018
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From: San Francisco Bay Area
2019 C63CS
Such a luxury tax is common in many countries. I had to look it up, but even the USA had one. It was enacted in 1991 and signed by Goerge H.W. Bush. The tax was levied on many material goods. It was 10% on cars over $30,000 and boats over $100,000 etc., but it was abolished two years later by Clinton and Congress citing loss in jobs after the luxury yacht industry heavily lobbied against it.
Last edited by superswiss; May 13, 2021 at 02:24 PM.
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From: Colorado
'21 AMG53 wDPP & ARC, 19 GLC300 - Former-03 C240,2 ML BlueTecs,20 GLE450 E-ABC,15 Cayenne D,17 Macan
Such a luxury tax is common in many countries. I had to look it up, but even the USA had one. It was enacted in 1991 and signed by Goerge H.W. Bush. The tax was levied on many material goods. It was 10% on cars over $30,000 and boats over $100,000 etc., but it was abolished two years later by Clinton and Congress citing loss in jobs after the luxury yacht industry heavily lobbied against it.
But to put it in context, the average car sold in 1990 was about $13,000, and today it's about $39,000.
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From: Ontario,Canada
...24 GLE53
It’s not a big deal. How many people buy cars for over 100K. I think only one Canadian who posted here owned a car over 100K. The GLS 580. So if you are spending 120K plus HST, what’s an extra 4K. And if it really bothers you, buy a cheaper car.
Member
Joined: Nov 2020
Posts: 81
Likes: 23
From: Ontario
2023 Jeep Grand Cherokee Summit Reserve
Well, my fairly well optioned GLE450 is $103K, but I get what you are saying. It bothers me but won’t stop me from buying a car. If you think it’s about the money, you’re missing the point.
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From: Nappanee Indiana
2026 E450
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From: 6530 Trask Terrace Alexandria, VA 22315
1
tax advisor near me
It seems our government do not like us being able to buy cars over $100,000.00 starting January 1/22. They said," if you are fortunate enough, worked hard enough or are lucky enough to be able to buy a car/ recreation plane valued over $100,000.00 or a boat valued over $250,000, congratulations, as you will be paying us more tax." All amounts over these figures will be subject to a 20% tax. So, if your car is valued at $110,000.00, then you will pay an extra $2000.00.
Business should be pretty good in 2021 with people trying to beat the January 1/22 deadline. Now, this hasn't been passed in parliament yet but it will.
Toban
Business should be pretty good in 2021 with people trying to beat the January 1/22 deadline. Now, this hasn't been passed in parliament yet but it will.
Toban
Will anything change on taxes under Biden?
Thread Starter
Senior Member
Joined: Jun 2011
Posts: 356
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2021 GLE 450
This thread was a reference to a luxury tax in Canada. Sounds like Biden’s on a similar thought process in raising taxes in the USA but haven’t heard anything about the kind of luxury tax Canada is going to institute.
Toban
Toban
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Joined: Jan 2021
Posts: 72
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From: Vancouver
2021 GLE53 SUV
I heard the threshold was going down. When I ordered mine this past Feb, it was 125K threshold before jumping to the 20% luxury tax, and just got under it by $400. Now they are lowering the threshold to $100K which is crazy. I missed the announcement but did hear this was coming.
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From: The Palmetto State
19 E63s, ‘24SQ8, wanting another gas guzzling V8
I just paid about $1300 property tax on a soon to be lemon buy back 580 so I feel your pain. We have to pay that property tax every year we own the car. It does decrease slightly every year though.
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From: Colorado
'21 AMG53 wDPP & ARC, 19 GLC300 - Former-03 C240,2 ML BlueTecs,20 GLE450 E-ABC,15 Cayenne D,17 Macan
MBWorld Fanatic!
Joined: Oct 2009
Posts: 7,073
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From: Colorado
'21 AMG53 wDPP & ARC, 19 GLC300 - Former-03 C240,2 ML BlueTecs,20 GLE450 E-ABC,15 Cayenne D,17 Macan
Of course that's after the sales tax, which runs about 7% but that's only at time of purchase.
Again, every State is different, Very Different!
Member
Joined: Nov 2020
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From: Ontario
2023 Jeep Grand Cherokee Summit Reserve
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Joined: Apr 2021
Posts: 31
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From: Hobart,Tasmania
GLE 400d V167
It seems our government do not like us being able to buy cars over $100,000.00 starting January 1/22. They said," if you are fortunate enough, worked hard enough or are lucky enough to be able to buy a car/ recreation plane valued over $100,000.00 or a boat valued over $250,000, congratulations, as you will be paying us more tax." All amounts over these figures will be subject to a 20% tax. So, if your car is valued at $110,000.00, then you will pay an extra $2000.00.
Business should be pretty good in 2021 with people trying to beat the January 1/22 deadline. Now, this hasn't been passed in parliament yet but it will.
Toban
Business should be pretty good in 2021 with people trying to beat the January 1/22 deadline. Now, this hasn't been passed in parliament yet but it will.
Toban
So pay for it with post paid tax dollars ,assume average of 33%...the real cost is about $235k AUD..just taxes upon taxes..
