What a New Honda Really Costs in Vancouver, BC

In Vancouver and across BC, a new Honda’s advertised total price must already include freight, PDI and dealer fees; only taxes can be added. On top, you pay 5% GST and PST, which is 7% on a passenger vehicle under $55,000 bought from a dealer, plus ICBC registration and insurance, as of November 2026. Carter Honda in Vancouver can walk you through each line.

Cost item	In the advertised total price?	Rule or rate
Freight and PDI	Yes	Must be included (VSA)
Documentation and other dealer fees	Yes	Must be included (VSA)
GST	No	5% in BC (CRA)
PST, passenger vehicle from a dealer	No	7% under $55,000, rising in tiers to 20% at $150,000 and over (gov.bc.ca)
VSA Transaction Levy	No	$10 from April 1, 2026; itemized as “VSA Levy Recovery” if passed on
Federal luxury tax	Yes, if passed on to you	Only on subject vehicles priced over $100,000
ICBC registration, licence and insurance	No	Arranged through an Autoplan broker

Next step: Get Your Payment Estimate or apply for pre-approval.

What does BC’s all-in price rule include?

BC’s all-in rule means the advertised price of a vehicle must be the total price, including every dealer fee, with only taxes left to add.

The Vehicle Sales Authority of BC advertising guidelines, effective November 19, 2025, say that whenever a vehicle price appears in an ad, it must be the total price, including any additional fees or charges such as documentation fees, other than taxes. For new vehicles, that total includes freight, pre-delivery inspection (PDI), and any accessories or optional equipment already on the car.

The VSA’s dealer fees page turns that into plain consumer rights:

• The price on the window sticker, and in any other ad, must be the total price.
• If no extra fees appear in the ad or on the sticker, you can assume they are already included.
• Dealer fees cannot be added once a price has been negotiated and agreed to.
• If one dealer has different prices for the same vehicle in active ads, you are entitled to the lowest price.

The guidelines also say the advertised total price must be available to all consumers with no qualifications except financing. So the number you see is a number you can actually buy at. What it does not include is tax, and that is where the real cost of a new car in BC is decided.

How much GST and PST will you pay on a new car in BC?

You pay 5% GST plus PST, and on a passenger vehicle bought from a dealer, PST starts at 7% and rises with the purchase price.

The CRA’s rate table lists BC at 5% GST. PST is set by the province. Under Bulletin PST 308 (revised August 2026), a passenger vehicle bought from a GST registrant, such as a dealer, is taxed on this scale:

Purchase price	PST rate
Less than $55,000	7%
$55,000 to $55,999.99	8%
$56,000 to $56,999.99	9%
$57,000 to $124,999.99	10%
$125,000 to $149,999.99	15%
$150,000 and over	20%

Two details matter. First, the tier is set by the purchase price before any trade-in or down payment is deducted. Second, the rate applies to the whole taxable amount, not just the part above a threshold. In the province’s own worked example, a vehicle priced at $60,000 with a $25,000 trade-in is taxed at 10% on the remaining $35,000.

Zero-emission vehicles (fully electric, plug-in hybrid or hydrogen) acquired after February 22, 2022 use higher thresholds: 7% under $75,000, 8% from $75,000, 9% from $76,000 and 10% from $77,000 to $124,999.99. PST 308 says those ZEV rates are in effect until February 22, 2027, after which they return to the old rates.

According to Bulletin PST 116, the PST purchase price includes documentation charges, service charges, environmental fees such as tire levies, and delivery charges. It excludes ICBC insurance, licensing and transfer fees, the GST, the federal luxury tax and manufacturers’ rebates. A warranty or service contract is only included if it is mandatory.

Does the federal luxury tax apply to a Honda?

The federal luxury tax only applies to subject vehicles priced or valued above $100,000, so it only matters if your total price crosses that line.

The CRA’s notice LTN2 defines a subject vehicle as one designed primarily to carry people on highways, seating 10 or fewer, with a gross vehicle weight rating of 3,856 kg or less and a date of manufacture after 2018. The Government of Canada says the tax is generally the lesser of 10% of the sales price and 20% of the amount above the threshold.

Budget 2025 removed the luxury tax on aircraft and vessels from November 5, 2025, but notice LTN5 (April 2026) confirms it continues to be payable on subject vehicles priced above $100,000 unless an exemption applies. If a dealer passes it on, the VSA guidelines require it to be included in the advertised total price.

What else do you pay to drive a new car home in Vancouver?

Beyond the vehicle and its taxes, you need ICBC registration, licensing and insurance, and you may see a $10 VSA levy.

ICBC says that when you pick up your vehicle from the dealership, you need to register, license and insure it. You can use an Autoplan broker at the dealership if there is one, or any Autoplan broker you choose. If you are moving an existing policy to the new vehicle, a Transfer/Tax form is needed, and ICBC asks for the previous vehicle’s odometer reading if you want a usage-based discount.

The VSA’s current transaction-levy page says a dealer passing on the $10 levy must include it in the advertised total, itemize it as “VSA Levy Recovery” on the agreement, and apply the relevant taxes. Check the complete written offer so the levy is not added twice.

Line	Amount
Hypothetical total price (freight, PDI and all mandatory fees included)	$40,000
GST at 5%	$2,000
PST at 7% (passenger vehicle under $55,000)	$2,800
Total before ICBC costs	$44,800

What this means for Vancouver drivers

Because the all-in rule applies to every licensed dealer in BC, you can compare total prices between a dealer on Burrard Street in Vancouver and one in Burnaby, Richmond, Surrey or on the North Shore on equal terms. Ask each one for the total price in writing, then add 5% GST and the PST rate for that price tier. The tax rules are the same across the province, whether you live in Kitsilano, Kerrisdale or East Vancouver; your ICBC premium depends on your own driving record, your vehicle and where you live.

At Carter Honda, 2390 Burrard St near West Broadway, our team can walk you through each line of a bill of sale in English, Mandarin, Cantonese, Farsi or Spanish. If you want to run your own numbers first, start with our payment calculator and the finance page.

Frequently asked questions

Can a BC dealer add a documentation fee on top of the advertised price?

No. Under VSA rules, the advertised price must be the total price, including documentation fees and other dealer charges. Only taxes can be added. If an ad or window sticker shows no extra fees, you can assume they are already included, and dealer fees cannot be added once a price has been agreed.

What is the PST rate on a new car in BC?

For a passenger vehicle bought from a dealer, BC PST is 7% under $55,000, 8% from $55,000, 9% from $56,000, 10% from $57,000 to $124,999.99, 15% from $125,000 and 20% at $150,000 and over, per Bulletin PST 308 (revised August 2026). Zero-emission vehicles use higher thresholds until February 22, 2027.

Is GST charged on a new car in BC?

Yes. GST applies when you buy a vehicle from a GST registrant such as a dealer, and the CRA lists the rate in BC at 5%. BC does not use HST, so GST and PST are charged separately on the bill of sale. GST does not generally apply to a private sale between individuals. Ask for taxes as separate lines on the written offer so you can follow the calculation.

Does the luxury tax apply to most new cars?

The federal luxury tax only applies to subject vehicles priced or valued above $100,000. It is generally the lesser of 10% of the price and 20% of the amount above $100,000. As of the CRA's April 2026 notice, it still applies to vehicles, although aircraft and vessels were removed from November 5, 2025.

Is ICBC insurance included in the price of a new car?

No. ICBC insurance, licensing and transfer fees are separate from the vehicle's price and are not part of the PST purchase price. ICBC says you need to register, license and insure the vehicle when you pick it up, through an Autoplan broker at the dealership or any broker you choose. Obtain an estimate using the exact vehicle and your circumstances before finalising the ownership budget.

What should I request to understand the complete cost of a new Honda?

Request an itemised written offer showing the vehicle, included charges, selected extras, applicable taxes and final purchase amount. For financing, also review the amount borrowed, rate, term and total repayment. Budget insurance, parking, fuel or charging and maintenance separately. That separates the cost to acquire the car from the continuing cost of owning and using it.

Related reading

• What a Certified Pre-Owned Honda Includes in Canada
• The Honda SUV Lineup and How All the Models Compare
• Every Hybrid Honda and Honda EV You Can Buy in Canada
• Payment calculator

Sources

• Vehicle Sales Authority of BC — Advertising Guidelines (effective November 19, 2025)
• Vehicle Sales Authority of BC — Dealer fees
• Canada Revenue Agency — GST/HST calculator (and rates)
• Province of BC — Bulletin PST 308, PST on Vehicles (revised August 2026)
• Province of BC — Bulletin PST 116, Motor Vehicle Dealers and Leasing Companies (revised December 2022, copy published by the VSA)
• Canada Revenue Agency — LTN2 Subject vehicles under the Select Luxury Items Tax Act
• Canada Revenue Agency — LTN5 Luxury tax not payable on subject aircraft and subject vessels
• Government of Canada — Luxury tax on after-sales improvements
• ICBC — Buying a new vehicle

Specifications and features described are for Canadian-market models as published by Honda Canada and the named manufacturers at the time of writing, and may change. Features vary by trim; photos may show optional equipment. Confirm details, availability and all-in pricing with Carter Honda in Vancouver before purchase.

Levy source: VSA current transaction-levy guidance. Confirm tax treatment and the complete transaction figures for your purchase.