Car Loan Calculator Canada 2026

Your car payment from a dealer, with your province’s sales tax and the tax break on a trade-in.

✓ 2026 rates · verified Oct 21–22, 2026

How this is calculated

1. Taxable amount: vehicle price + taxable dealer fees − your trade-in. If the trade-in is worth more than the vehicle, nothing is taxable (and no tax comes back).
2. Sales tax: GST or HST, plus any provincial tax, on that amount. Each tax is rounded to the cent. CRA confirms that when you trade in a personal vehicle, the dealer charges GST/HST on the net amount.
3. B.C. only: the PST rate is picked from the price before the trade-in, then charged on the price after it (table below).
4. Amount financed: vehicle + fees + tax − trade-in − down payment.
5. Payment: standard loan formula, P × i ÷ (1 − (1 + i)⁻ⁿ), where i is the yearly rate ÷ 12 for monthly payments or ÷ 26 for bi-weekly, and n is the number of payments. Total interest is the payment × n − the amount financed.

Sales tax on vehicles by province, 2026

The trade-in reduces GST and HST everywhere. Provincial taxes have conditions: in Saskatchewan, Saskatchewan tax must have been paid on the trade-in and you must own it; in Manitoba, both vehicles must be of the same general kind (a car for a truck counts, a snowmobile toward a car doesn’t); in B.C., you must have paid PST on it or been exempt.

B.C. PST on passenger vehicles bought from a dealer

Passenger vehicles include cars, SUVs, and trucks and vans ¾-ton or less. The zero-emission table applies to sales up to February 22, 2027; after that, B.C. says the old rates return.

Worked examples

Alberta: $40,000 car, $15,000 trade-in, 5.99% for 72 months

The trade-in saves you $750.00 of GST compared with selling it yourself and paying tax on the full $40,000. In Ontario, the same deal has $3,250.00 of HST.

B.C.: $56,500 gas car, $10,000 trade-in

The trade-in lowers the amount taxed but not the rate: the band comes from the $56,500 price. Under $55,000 the rate would be 7%. In Saskatchewan, the province’s own example of a $20,000 vehicle with a $5,000 trade-in has $900.00 of PST plus $750.00 of GST.

What this calculator assumes

• You’re buying from a dealer. Private sales follow different provincial rules (B.C., for example, charges 12% PST on the greater of the price and the average wholesale value), so they aren’t covered.
• Your trade-in is a personal vehicle you own and already paid tax on in the same province, so it qualifies everywhere.
• Quebec: for a used vehicle 14 years old or less, the SAAQ calculates QST on the vehicle’s estimated value if that’s higher than the price, and collects it when you register. We use the price.
• It doesn’t include a balance owing on your trade-in, licence and registration, insurance, extended warranties, or the federal luxury tax on expensive vehicles. Add taxable dealer fees (freight, PDI, documentation, tire levies, Alberta’s AMVIC levy) in the fees box.
• The interest rate stays the same for the whole term, with no extra payments.

Rates for tax year 2026, verified October 21 to October 22, 2026 · Page updated October 28, 2026