Border Brokers

Luxury Tax Memo

Effective September 1st, 2022, the Government of Canada has introduced a luxury tax on the importation and sale of certain vehicles and aircrafts exceeding $100,000 CAD, and vessels exceeding $250,000 CAD. The value threshold is inclusive of any fees, duties, or excise duties and taxes applicable to the subject vehicle at the time of import.

Luxury tax will be calculated at a rate of 10% of the entire value for tax, or 20% of the taxable value exceeding the threshold, whichever is lesser.

Vehicles, aircrafts, and vessels that are subject to the tax will have been manufactured after 2018. There are notable exclusions depending on vehicle type or use, and registered vendors/importers are exempt from paying this tax at time of import.

For more information on the luxury tax, notable exclusions, and how it applies:

To register under the select luxury items tax act as a registered vendor/importer:

If you have any questions on the luxury tax act, or how it may apply to you, please contact us and we will be happy to assist.

Canada Toll-Free: 1-855-236-2566

U.S. Toll-Free: 1-877-283-1666

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