Tax is one of the biggest costs people forget to budget for when buying a used car in B.C. The good news: the rules are simpler than they look. Here’s how it works, based on the Province’s current PST bulletin for vehicles.
Buying from a dealer
When you buy from a dealership (a GST registrant), you pay 5% GST plus PST. For passenger vehicles, the PST rate depends on the purchase price:
| Purchase price | PST (dealer sale) |
|---|---|
| Less than $55,000 | 7% |
| $55,000 – $55,999.99 | 8% |
| $56,000 – $56,999.99 | 9% |
| $57,000 – $124,999.99 | 10% |
| $125,000 – $149,999.99 | 15% |
| $150,000 and over | 20% |
Buying privately
A private sale has no GST, but PST on a passenger vehicle is 12% up to $124,999.99 (15% from $125,000 and 20% from $150,000). You pay it when you register the vehicle. For private sales, PST is generally based on the greater of the purchase price and the vehicle’s appraised or average wholesale value — so writing a low price on the bill of sale doesn’t reduce the tax.
So which is cheaper?
For most used cars, it’s a wash. On a $25,000 vehicle:
- Dealer: 5% GST + 7% PST = $3,000
- Private: 12% PST = $3,000
Above $55,000 the dealer PST rate climbs, so on a $60,000 vehicle a dealer sale works out to 15% ($9,000) versus 12% ($7,200) privately. In exchange, a dealer purchase usually comes with a safety inspection, a clear title check, financing options and somewhere to go if something isn’t right.
Your trade-in can lower the tax
Under B.C.’s rules, the value of a trade-in can reduce the taxable purchase price. The Province’s own private-sale example: a $10,000 vehicle with a $6,000 trade-in means PST on just $4,000 — $480 instead of $1,200. Trade-ins at a dealership follow the dealer rules, so ask your salesperson to show the tax savings on your bill of sale.
Good to know
- Electric vehicles have their own rate table, and the used-EV PST exemption ended May 1, 2025.
- Vehicles brought in from outside B.C. have different rules.
- Always confirm the exact amount for your purchase — tax is shown on your bill of sale.
Want a clear all-in number? Ask us for a full breakdown on any vehicle in our inventory.
Source: Province of B.C., Bulletin PST 308 — PST on Vehicles (revised August 2026). This article is general information, not tax advice.