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:
The additional annual registration fee equals 1% of the vehicle's value exceeding $40,000.
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:
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).
|Powertrain/Fuel||Vehicle Value||Additional Registration Fee|
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.
Last update: July 21, 2021