The luxury tax is equal to the lesser of 10% of the taxable amount of the subject vehicle and 20% of the amount above the price threshold:
• The taxable amount multiplied by 10%
• The amount that results from subtracting $100,000 from the taxable amount and multiplying the difference by 20%
Example:
The luxury tax is calculated to be the lesser of:
• $12,000 ($120,000 × 10%)
• $4,000 [($120,000 - $100,000) × 20%]  Â
The luxury tax payable is $4,000.
The new luxury tax is applicable to new vehicles only as pre-owned vehicles are exempt.
Click here to view our wide selection of pre-owned vehicles.
Audi Edmonton North collects the luxury tax at the dealership level and remits to the government accordingly.
