There are up to 6 potential fees and taxes to pay when you import a car from the USA. These are described below. In addition there are various temporary insurance costs and inspection fee costs. These are covered elsewhere. Remember that anyone buying a new car in Canada will be paying taxes 1,4,5 and 6 anyway but the tax load for those fees are actually lower when importing from the US since the vehicle is considerably cheaper.

1. GST TAX. Whenever any vehicle (new or used) is imported into Canada it is subject to a GST tax of 6%. You pay this tax immediately to Canada Customs Agents at the time of bringing the car over the border. [Inside Canada, this tax is applied to any new vehicle purchased in Canada and any used vehicle purchased at a registered car dealer.]

2. IMPORT DUTY. An Import Duty may also be payable at the same time. Duty is only applicable to non-NAFTA vehicles and is calculated at 6.1%. NAFTA cars are vehicles that have been manufactured or have been assembled in Canada/US/Mexico with a minimum of 55% content. A "NAFTA" vehicle is exempt of ANY tariffs, duties or taxes when sold in Canada/US/Mexico. A "NAFTA" vehicle can be easily determined by looking at the VIN number. If the first character of the VIN is a NUMBER then it is DUTY FREE. If the first character is a letter, the vehicle is subject to a 6.1% Import Duty.

     NOTE: The above two fees 1. and 2. are calculated by Canada Customs by converting the US price 
     on your bill of sale at the official Can govt exchange rate in the hour that present yourself 
     and the car at the Canadian border. (This is generally a better rate of exchange than you get at a bank).

3. RIV FEE. In order to process a US vehicle, the Canadian Registrar of Imported Vehicles (RIV, a federal govt office) collects a fee of $207 inc. immediately when you bring the car over the border. This fee applies to EVERY vehicle imported into Canada regardless of it's age. See separate entries on RIV import regulations and the two RIV forms needed for importing.

4. AIR CONDITIONING TAX. Additionally, like most new vehicles, a $100 Air Conditioning tax is also payable on any vehicle. You pay it immediately on crossing the border, like the previous two fees/taxes.

5. GAS GUZZLER TAX. On March 19, 2007 the Canadian Federal government introduced a new excise tax on fuel-inefficient vehicles. This applies to ALL new vehicles purchased in Canada or imported from the US. [For a complete explanation of this tax click this link: [1] ]. Automobiles that have a weighted average fuel consumption rating of 13 or more litres per 100 kilometres will be subject to the excise tax at the following rates:

   * at least 13 but less than 14 litres per 100 kilometres, $1,000;
   * at least 14 but less than 15 litres per 100 kilometres, $2,000;
   * at least 15 but less than 16 litres per 100 kilometres, $3,000; and
   * 16 or more litres per 100 kilometres, $4,000.

     NOTE: Fees 1 through 5 are combined and you pay the cashier at the Customs Office on 
     entering Canada with your car. You will almost certainly have to pay this by credit card. 

6. PROVINCIAL SALES TAX. Once the vehicle is successfully imported, a provincial sales tax is payable at the time of registration in Canada. This is based on the current tax rate for your respective jurisdiction. It should be calculated at the govt exchange rate prevailing in the hour that you register the car, but in practice many provincial insurance agents use the official Canada Customs receipt to calculate provincial taxation. Keep a careful eye on what they are doing. In BC the PST (called "social services tax") is 7%. Lucky Albertans are zero rated.