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Jul 25, 2021 | 06:16 AM

#16

tiddjc

Driver

Joined: Feb 2021

Posts: 53

Likes: 63

From: Ontario

Quote:

Originally Posted by r1lee

I didn't have to pay any luxury tax. This is the first I'm hearing of this tax lol just had to check.

MSRP is $122,500. With freight PDI and taxes. Totals with taxes with no discount is around $145,000.

at 10% it's $14,500
at 20% above 100k it would be around $9k.

Expected Jan 1st 2022. The tax is calculated at the lesser of:

20 per cent of the value above threshold ($100,000 for cars and personal aircraft; $250,000 for boats) ; or
10 per cent of the full value of the luxury car, boat or personal aircraft.

it is not a tax on tax.. if the car is 122,000 the luxury tax wound be 20 % of 22,000 or $4,400. That is the way I see it from what I have read.

Jul 25, 2021 | 06:39 AM

#17

bitkahuna

CL Community Team

iTrader: (20)

Joined: Feb 2001

Posts: 80,370

Likes: 3,779

r1lee, yes i don't think you paid it - according to the article i linked to "The luxury-car tax comes into force on January 1, 2022"

but your C$22.5K taxes and fees is still horrible

i think i paid about $6.5K taxes and fees.

Jul 25, 2021 | 06:57 AM

#18

guanche2k9

Advanced

Joined: Jul 2017

Posts: 741

Likes: 330

From: FL

Quote:

Originally Posted by bitkahuna

r1lee, yes i don't think you paid it - according to the article i linked to "The luxury-car tax comes into force on January 1, 2022"

but your C$22.5K taxes and fees is still horrible

i think i paid about $6.5K taxes and fees.

Ya, welcome to Canada. I remember when I used to live in the province of Quebec, the highest tax bracket on ordinary income was just at around 50%. I believe sales tax in QC is a total of 15% (between QST and GST).