Additional Registration Fee for Luxury Vehicles

If you own a luxury vehicle, you must pay an additional registration fee when you first register your vehicle, and again each year when you renew your vehicle registration.

A passenger vehicle or light truck is considered a luxury vehicle if:

  • it has a net weight of 3,000 kg or less
  • it is 7 years old or less
  • it is worth more than $40,000

The additional annual registration fee equals 1% of the vehicle's value exceeding $40,000.

luxury vehicles exempt from the additional registration fee

You may be exempt from paying the additional registration fee for a luxury vehicle, depending on the vehicle’s engine type or use. Passenger vehicles serving a special purpose are not subject to the additional registration fee. Here are the main types of vehicles to which the exemption applies:

  • electric, plug-in hybrid or hydrogen fuel cell vehicles for the portion of their value between $40,000 and $75,000
  • motorcycles
  • mopeds and scooters
  • snowmobiles
  • taxis
  • ambulances
  • limousines
  • motor homes
  • school buses
  • tow trucks
  • minibuses