Luxury Tax Registration Canada

Luxury Tax Regime Overview

Canada's luxury tax was originally introduced in the 2021 Federal Budget and received Royal Assent on June 23, 2022. As part of the Canadian Government's commitment to a fair tax system, the luxury tax will apply to select luxury goods including:

• vehicles priced above $100,000,
• aircrafts priced above $100,000, and
• certain vessels (i.e. boats) priced above $250,000.

Luxury Goods Subject to the Application of the Luxury Tax

The Canadian luxury tax legislation is called the Select Luxury Items Tax Act. Below is an overview of the items subject to the luxury tax when all conditions are met as well as the exceptions for each.

Vehicles

Motor vehicles manufactured after 2018 that are designed or adapted primarily to carry individuals on highways and streets, with a seating capacity of 10 or fewer passengers and have a gross vehicle weight rating of 3,856 kilograms or less will be subject to the luxury tax. This would