BC PST on Used Cars: Private Sale vs Dealer (Full Rate Table)

One of the most confusing parts of buying a used car in British Columbia is that you pay a different tax rate depending on who you buy from. Buy privately and PST starts at 12%. Buy from a licensed dealer and PST starts at 7% — but GST is added. Here's the whole picture in one place.

Quick answer

• Private sale (person to person): 12% PST on vehicles under $125,000, rising to 15% and then 20% in higher brackets. No GST.
• Licensed BC dealer: 7% PST under $55,000 (rising by price bracket) plus 5% GST — a 12% combined starting rate.

BC tax rate table for used vehicles

Buying privately

• Under $125,000 — 12% PST
• $125,000 – $149,999.99 — 15% PST
• $150,000 and over — 20% PST

Buying from a licensed dealer (PST + 5% GST)

• Under $55,000 — 7% PST + 5% GST = 12% total
• $55,000 – $55,999.99 — 8% PST + GST = 13% total
• $56,000 – $56,999.99 — 9% PST + GST = 14% total
• $57,000 – $124,999.99 — 10% PST + GST = 15% total
• $125,000 – $149,999.99 — 15% PST + GST = 20% total
• $150,000 and over — 20% PST + GST = 25% total

Rates change with provincial budgets — always confirm the current brackets with your Autoplan broker or the BC government before signing. This table reflects the structure in place for 2026.

The catch nobody warns you about: ICBC values the car, not your bill of sale

On a private sale, PST is charged on the greater of the purchase price or the average wholesale value of the vehicle. Writing "$1" on the transfer form doesn't work, and an unrealistically low declared price will simply be adjusted at the Autoplan counter.

Where the dealer route actually wins: trade-ins

In BC, a trade-in at a registered dealer reduces the taxable amount of the vehicle you're buying. Private sales offer no such credit.

• $35,000 vehicle, no trade-in: taxed on $35,000.
• $35,000 vehicle with a $12,000 trade-in: taxed on $23,000 — roughly $1,440 saved at a 12% combined rate.

Worked example: $30,000 used SUV

• Private: 12% PST = $3,600 → all-in $33,600.
• Dealer: 7% PST ($2,100) + 5% GST ($1,500) = $3,600 → all-in $33,600, but with warranty options, lien-free title, financing and trade-in credit available.

The tax is effectively a wash at this price point — the real difference is protection, paperwork and the trade-in credit.

Other costs to budget

• ICBC transfer and registration fees.
• Out-of-province inspection if the vehicle comes from Alberta or elsewhere.
• Luxury surtax brackets above $125,000.
• Lien search — never skip it on a private purchase.

Use our payment calculator on the resources page to see how tax changes your monthly payment, or get pre-approved before you shop.