Luxury vehicle registration fees: Quebec collected $81.5 million in 2025

Quebec collected $81.5 million last year in registration fees for luxury vehicles costing more than $40,000, a 17% increase from the $69.7 million collected in 2024.

“It's commendable to find places where you can levy taxes, but right now, it's the average consumer who's paying for it,” says Denis Leclerc, president and founder of Groupe ALBI le Géant in Mascouche.

“If it starts at $75,000, we're talking about a luxury electric car, a Volvo, approaching Genesis. We're talking about something in the Mercedes or BMW range,” he analyzes.

In Quebec, owners of vehicles worth more than $40,000 must pay an additional 1% tax on the excess portion because they are considered “luxury” vehicles.

This has brought in $436 million to the public treasury over 10 years, according to data obtained by Le Journal (see table below).

However, many believe that Quebec has it easy by placing cars costing $40,000 or more in this category.

This is the case for Anne-Véronique Plante, who was spotted with her daughter on Thursday at a service center of the Société de l’assurance automobile du Québec (SAAQ) in Longueuil.

“Lamborghini, Ferrari, that's normal. They're luxury cars, but the slightest thing you want in a family car will easily exceed $40,000,” she thinks.

Aiming in the wrong place

The woman who has been driving a Honda Odyssey for a long time believes that the government is not targeting the right people with its measure.

For his part, Ian P. Sam Yue Chi, CEO of the Corporation des concessionnaires automobiles du Québec (CCAQ), points out that at the federal level, the luxury tax applies to cars costing more than $100,000.

“That $40,000 is a bit strange in today's reality, given that the average price of a new vehicle exceeds $60,000 in Quebec,” he laments.

Quebec defends itself

The office of Finance Minister Eric Girard has indicated that this threshold of $40,000 will be increased to $62,500 starting next year.

“We are aware that between inflation, pressure on our supply chains, and the current international context, vehicle prices have increased,” says Amelia Benattia, Director of Communications.

“The new threshold has been set so that the majority of new vehicles are not subject to luxury tax and that more than 90% of vehicles seven years old or younger are not subject to it,” she concludes.

Luxury vehicle registration fees over the past 10 years

• 2025: $81.5 million
• 2024: $69.7 million
• 2023: $62.9 million
• 2022: $55.4 million
• 2021: $41.6 million
• 2020: $28.5 million
• 2019: $27.2 million
• 2018: $24.9 million
• 2017: $24 million
• 2016: $20.4 million

TOTAL: $436 million

(Source: the Quebec Automobile Insurance Corporation)

Examples of exempt vehicles

• motorcycle
• scooter
• snowmobile
• ambulance
• school bus
• tow truck
• minibus
• electric vehicle, plug-in hybrid, or hydrogen fuel cell vehicle (portion of its value between $40,000 and $75,000)

(Source: the Quebec Automobile Insurance Corporation)