What you actually pay in PST and GST on a used vehicle in British Columbia: dealer vs private sale rates, the Black Book rule, how a trade-in cuts the tax, and what changed for used EVs.
Ask five people what the tax is on a used car in BC and you will get five answers, most of them some version of "12%". That is right for some purchases and wrong for others, and the difference can be hundreds or thousands of dollars. This guide explains PST on used cars in BC from the province's own bulletins: what you pay at a dealer, what you pay privately, how a trade-in changes the bill, and why the used-EV exemption you may have read about no longer applies.
PST on used cars in BC: dealer vs private sale
The rules are in the province's Bulletin PST 308, PST on Vehicles (revised August 2026). The rate depends on whether you buy from a GST registrant (a dealer) or in a private sale, whether it is a passenger vehicle, and the price. For gas and conventional hybrid passenger vehicles:
| Purchase price | Private sale PST | Dealer PST | Dealer GST |
|---|---|---|---|
| Under $55,000 | 12% | 7% | 5% |
| $55,000 to $55,999.99 | 12% | 8% | 5% |
| $56,000 to $56,999.99 | 12% | 9% | 5% |
| $57,000 to $124,999.99 | 12% | 10% | 5% |
| $125,000 to $149,999.99 | 15% | 15% | 5% |
| $150,000 and over | 20% | 20% | 5% |
From a dealer, a used passenger vehicle under $55,000 is charged 7% PST plus 5% GST. Bought privately, the same car is charged 12% PST and no GST. Above $55,000 the dealer PST rate steps up: 8%, 9%, then 10% from $57,000, 15% from $125,000 and 20% from $150,000. Trucks and vans larger than ¾-ton, motorhomes and some other vehicles count as non-passenger vehicles and stay at the base rate. The bulletin has the full definitions.
So for most cars under $55,000 the total is 12% either way: 7% + 5% at a dealer, or 12% privately. The difference shows up in what the percentage is charged on.
How private-sale PST is calculated
Yes. The buyer pays PST at the applicable rate, 12% for passenger vehicles under $125,000, on the greater of the purchase price or the vehicle's average wholesale value from the Canadian Black Book. ICBC collects it when you register the vehicle.
That "greater of" rule means writing a low price on the transfer form doesn't lower the tax. The province says it reviews vehicle transfers and may contact the buyer or seller if the documented price doesn't reflect fair market value.
When the car really is worth less
If you think the vehicle is worth less than the average wholesale value, you can get a Motor Vehicle Appraisal Form (FIN 320) completed by a dealer or professional appraiser. If both the appraisal and your price are below wholesale, PST is charged on the greater of the appraisal and the price. That might be the case for a car with body damage or a tired engine.
When and where you pay
PST 308 says you pay at the earliest of: registering the vehicle with ICBC (ICBC collects it), your next PST return if you have a PST number, or by the end of the following month using a Casual Remittance Return (FIN 405). ICBC's own advice is for buyer and seller to go to an Autoplan broker's office together to transfer ownership, and that is when ICBC collects the PST.
How a trade-in lowers your tax at a dealer
Yes, if it qualifies. When the trade-in is on the same sales agreement, you own it, and tax was paid on it (a vehicle registered in BC is assumed to qualify), PST is charged on the price minus the trade-in value. The PST rate is still set by the full purchase price before the trade-in. The province's Bulletin PST 116 (revised April 2026) sets the conditions: the trade-in must be accepted "at the same time you sell the new or used vehicle (i.e. the trade-in value must be shown on the sales agreement)", the customer must own it, and tax must have been paid on it.
GST works the same way. The Canada Revenue Agency's guidance on special cases says that when a dealer accepts a used vehicle from a non-registrant, GST is charged "on the net amount (the price of the goods you sell or lease minus the amount you allow for the trade-in)."
Worked examples
| Purchase | Taxable amount | PST | GST | Total tax |
|---|---|---|---|---|
| $20,000 car from a dealer, no trade-in | $20,000 | 7% = $1,400 | 5% = $1,000 | $2,400 |
| $20,000 car from a dealer, $6,000 trade-in | $14,000 | 7% = $980 | 5% = $700 | $1,680 |
| $20,000 car privately (Black Book wholesale $18,000) | $20,000 | 12% = $2,400 | None | $2,400 |
| $60,000 vehicle from a dealer, $25,000 trade-in (PST 116 example) | $35,000 | 10% = $3,500 | 5% = $1,750 | $5,250 |
The second row is the point. Trading in a $6,000 car on the same agreement cut the tax by $720 compared with selling it separately and buying outright. Selling privately might still get you a higher price for the old car. Do the arithmetic both ways. Our BC trade-in process guide and car trade-in guide explain how appraisals work.
Watch the $55,000 line
Because the rate is set by the price before the trade-in, a dealer vehicle priced at $55,000 pays 8% PST on the whole taxable amount, while one at $54,999 pays 7%. On a $55,000 vehicle with no trade-in, that one dollar of price adds $550 of PST. Near the threshold, the exact price matters.
Used EVs and plug-in hybrids: the exemption ended
No. The province's exemption for qualifying used zero-emission vehicles ran from February 23, 2022 to April 30, 2025. Used EVs bought after that pay PST, although zero-emission vehicles have their own rate tiers that start higher than gas vehicles. Some websites still describe the exemption as current, but PST 308 is clear: "PST will apply to purchases and leases of used ZEVs after April 30, 2025."
Zero-emission vehicles still get different rate thresholds. For ZEVs acquired after February 22, 2022, the dealer rate stays at 7% up to $75,000 (instead of $55,000) before stepping up. The bulletin says these ZEV rates are in effect until February 22, 2027. In PST terms, "ZEV" includes plug-in hybrids but not regular hybrids, which are taxed like gas cars. See our guide to buying a used EV in BC for the full picture.
Luxury tax and other extras
The BC Vehicle Sales Authority's buying guide notes that federal luxury tax "may also apply" on higher-priced vehicles. PST 116 says the federal luxury tax isn't included in the price PST is calculated on. Dealer documentation or administration fees are separate from tax. The VSA says special charges must be clearly stated in advertising or openly discussed while negotiating.
What this means when you buy from us
Knowing how PST on used cars in BC works lets you compare a dealer price with a private price fairly. At Luminai Auto Group in Richmond, the tax on a vehicle you buy is charged on the bill of sale, and a qualifying trade-in goes on the same agreement so it reduces the taxable price. We offer same-day trade-in appraisals. If you are financing, our financing page and how car financing works explain the process. Before you sign anywhere, run through our used car buying checklist. Questions about a specific vehicle? Call (778) 829-6669. We are open Monday to Sunday, 11 am to 6 pm.
Frequently asked questions
How much PST do you pay on a used car in BC?
From a dealer, a used passenger vehicle under $55,000 is charged 7% PST plus 5% GST. Bought privately, the same car is charged 12% PST and no GST. Above $55,000 the dealer PST rate steps up: 8%, 9%, then 10% from $57,000, 15% from $125,000 and 20% from $150,000.
Do you pay PST on a private car sale in BC?
Yes. The buyer pays PST at the applicable rate, 12% for passenger vehicles under $125,000, on the greater of the purchase price or the vehicle's average wholesale value from the Canadian Black Book. ICBC collects it when you register the vehicle.
Does a trade-in reduce PST in BC?
Yes, if it qualifies. When the trade-in is on the same sales agreement, you own it, and tax was paid on it (a vehicle registered in BC is assumed to qualify), PST is charged on the price minus the trade-in value. The PST rate is still set by the full purchase price before the trade-in.
Is there still a PST exemption on used electric cars in BC?
No. The province's exemption for qualifying used zero-emission vehicles ran from February 23, 2022 to April 30, 2025. Used EVs bought after that pay PST, although zero-emission vehicles have their own rate tiers that start higher than gas vehicles.
What if I paid less than Black Book value in a private sale?
If you think the vehicle is worth less than the average wholesale value, you can get a Motor Vehicle Appraisal Form (FIN 320) completed by a dealer or professional appraiser. If both the appraisal and your price are below wholesale, PST is charged on the greater of the appraisal and the price.
Rates from Bulletin PST 308 (revised August 2026) and PST 116 (revised April 2026), Province of British Columbia, and CRA GST guidance, checked October 2026. This is general information, not tax advice.
Sources
- Province of BC: Bulletin PST 308, PST on Vehicles (revised August 2026)
- Province of BC: Bulletin PST 116, Motor Vehicle Dealers and Leasing Companies (revised April 2026)
- CRA: GST/HST in special cases (trade-ins)
- Vehicle Sales Authority of BC: Buying Guide
- ICBC: Vehicle Claims History Report FAQ (transfer at an Autoplan broker)