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 meets the following three criteria:

  • 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 powertrain 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:

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

FULLY ELECTRIC, PLUG-IN HYBRID OR HYDROGEN FUEL CELL VEHICLES

As of January 1, 2018, buyers or long-term lessees of vehicles eligible for the Drive Green Program, administered by Transition énergétique Québec (TEQ), have benefitted from a reduction of or exemption from the additional registration fee for luxury vehicles based on different criteria established by the Drive Green Program (powertrain and value).

To find out more about the various criteria established by the Drive Green Program, see the normative framework (in French only).

Additional Registration Fee Based on Vehicle Powertrain and Value
Powertrain/Fuel Vehicle Value Additional Registration Fee
  • Fully electric
  • Hydrogen fuel cell
  • Plug-in hybrid
$40,001 to $74,999
  • Exemption from the additional registration fee
  • Plug-in hybrid
$75,000 or higher
  • No exemption
  • Additional registration fee charged on the portion of the vehicle’s value that exceeds $40,000
  • Fully electric
  • Hydrogen fuel cell
$75,000 to $124,999
  • Vehicles valued at $74,999 or lower are exempt from the additional registration fee
  • Additional registration fee charged on $75,000 and over
  • Fully electric
  • Hydrogen fuel cell
$125,000 or higher
  • No exemption
  • Additional registration fee charged on the portion of the vehicle’s value that exceeds $40,000
  • Non-rechargeable hybrid/Other type of powertrain
$40,001 or higher
  • No exemption
  • Additional registration fee charged on the portion of the vehicle’s value that exceeds $40,000
Useful information

To determine the value of a vehicle, the SAAQ refers to recognized vehicle value guides. These guides determine the average wholesale price (AWP) of different vehicles based on model years. The TEQ, however, refers to the manufacturer suggested retail price (MSRP).

Once the value of a vehicle, further to depreciation, drops below one of the thresholds predetermined by the Drive Green Program, the reduction of or exemption from the additional registration fee is automatically applied. For example, for a fully electric vehicle valued at $80,000, the fee is applied on $5,000, that is, the portion of the value between $75,000 and the value of the vehicle ($80,000). After accounting for depreciation, if the value of the vehicle falls under $75,000, the vehicle is exempt from the fee.