How much is car tax in Alberta?
How much tax do you pay on a used car in Alberta? If you buy from a dealership: you will only pay 5% GST. The dealership will collect the tax when you purchase your vehicle. If you buy from a private seller: you do not have to pay any taxes. The 18% GST on used cars applies only to GST-registered dealers—businesses or companies that buy and sell used cars. This includes platforms like Cars24, Spinny, and other similar companies. For example, if a car dealer buys a used car for ₹10 lakh and its selling price is ₹12 lakh.Goods and Services Tax (GST) As of 2024 the GST rate is 10% of the value of the car.