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Importing Car into Canada from US



  • mok331mok331 Posts: 2
    KYFDX.........thanks for the quick reply. Is it possible that I was talking to an uninformed dealer. He stated to me that regardless of what type of plate (tag) that I get that they have to charge and remit the 6% state sales tax. Does he just not know what he's talking about?
  • kyfdx@Edmundskyfdx@Edmunds Posts: 25,898
    That would be my guess... I've never bought a car in Indiana, but I only live about 20 miles from the state line, and I know that if I buy a car there, I pay taxes in my own state.

    Uninformed... is probably correct.. I'd check it with another dealer, though.

    Moderator - Prices Paid, Lease Questions, SUVs

  • jlawrence01jlawrence01 Posts: 1,828
    I've never bought a car in Indiana, but I only live about 20 miles from the state line, and I know that if I buy a car there, I pay taxes in my own state.

    That is the way it works in Ohio (and every other state I have lived in). Also, the sales tax is based on the COUNTY of residence, not the county of purchase.
  • subahondasubahonda Posts: 75
    Every state and province collects the tax when the car receives its permanent license, otherwise there is double taxation. If this were not so, Oregon and New Hampshire, with no sales tax, would be the only places where people would buy cars.
  • bankonebankone Posts: 44
    Please PM me. Thanks. My e-mail:
  • kyfdx@Edmundskyfdx@Edmunds Posts: 25,898
    There are states where the dealer has to collect the tax, no matter where you live... California is one of those... If you are from out of state, and buy from a California dealer, the only way to avoid the tax is to have the car shipped to you, or have the dealer drive it across the state line and deliver it to you out-of-state.

    I'm pretty sure Indiana isn't that way, though..

    Moderator - Prices Paid, Lease Questions, SUVs

  • smogilsmogil Posts: 40
    Anyone dealt with New York before? I'm having a similar issue. The dealer asked me whether I can give them a New York address to register the car to, so it would be easier to charge taxes and make up plates. Obviously, I said.. no way! I tried to explain it to them, but they didn't seem to quite get it. Their finance department is now mulling it over and will hopefully figure it out.

    Anyone know if perhaps there's a website or source of information on this that I can direct them to? It would just make this so much easier.
  • wooha2000wooha2000 Posts: 54
    I just tried to purchase another Toyota from the same person I purchased my first one and I am now told that they cannot sell to Canadians anymore. Toyota USA told them not to, I think this is true because another dealer in a different state who was selling lots of Toyota's to Canadians said exactly the same thing.

    does anyone else know a dealer still selling to Canadians?
  • wooha2000wooha2000 Posts: 54
    I am with ING and yes you should contact them and get a quote first to ensure that you have no issues. I don't deal with ING directly and use an agent who said it was no issue as I already had insurance with them.
  • wooha2000wooha2000 Posts: 54
    AZ is the same also, I spoke to someone in the AZ tax dept and was informed they have no reciprocity with Canada (don't know about US states)for taxes and must collect them.

    If you can purchase in Montana, I believe there is no State tax.
  • netdognetdog Posts: 66
    State taxes do apply based on the state where the vehicle is to be registered as other posters have indicated. However, I have discovered that many states have reciprocal inter-state agreements for collecting the tax at point-of-sale, which is subsequently credited when the vehicle is ultimately registered out-of-state. The amount collected is based on the tax rate of the state where the vehicle will be registered.

    Michigan operates this way and the only way for you to really dodge this tax (if you plan to register the vehicle in Canada) is to give them a US address in one of the no-tax states (Alaska, Delaware, Montana, New Hampshire, Oregon, or New Mexico), or in one of the non-reciprocal states (Arkansas, DC, Maryland, Mississippi, Nebraska, North Carolina, Oklahoma, South Dakota and West Virginia). Barring that, you can also give them an address in one of the low-tax states (Alabama, Colorado, Virginia) which are all between 2-3%.

    The caveat is that some Michigan dealers are claiming that if you give them an out-of-state address, they cannot offer you all of the available rebates but this sounds like hog-wash to me. I already checked with Toyota US for example, and they have no such restrictions on their rebates and the amount of the rebate is based on the dealer's location not where the vehicle is to be registered.

    Another important thing to note is that some states (the non-reciprocal states I mentioned earlier) impose a 'use' tax at the time of registration, regardless of whether or not the dealer collected taxes out-of-state. Should'nt be an issue unless you actually plan to register the vehicle in one of those states.

    I could not find similar information on taxes in NY but I believe my experiences in Michigan (and previously in Maryland) might give you some insight on how some states (possibly including NY) operate.

    Please post what you find out on NY's out-of-state tax policies.

    On another note, I also contacted the Ontario DMV and confirmed that there are no reciprocal agreements between Ontario and any of the US states for collecting taxes on vehicles but the agent suggested that we may be able to apply for a non-resident tax refund from the state that collected the tax. Anyone know if that is possible and how?
  • netdognetdog Posts: 66
    I plan to purchase a new Sienna in the states from a dealer who insists that I must title and register it through him in Michigan. Even with the state taxes, I figure that I'll be saving roughly $6-8K over buying it here.

    However, if I title it in the states (even for just one day) I am concerned that the import and registration process will be a bit more complex (since this would now be treated as title transfer) and the taxes a bit higher (since they may use red book instead of bill of sale to calculate GST/PST). Can anyone who's gone through this provide some insight?

  • wooha2000wooha2000 Posts: 54

    Has anyone purchased a new BMW from a a dealer? If so, can you provide me with dealership name. I want to import to Canada. i am in Alberta, so somewhere in the West is preferable.

  • tjiangtjiang Posts: 2
    You may have to pay extra tax because most of them are made in it still worth?
  • smogilsmogil Posts: 40
    For cars made in Germany (or any other country outside of Canada, US and Mexico), there's a duty of 6.1%.
  • wooha2000wooha2000 Posts: 54
    Z4 and X5 are made in the USA. Others are Germany and you would then have to pay duty. Yes it is depending on what you buy. I calculated still saving ~8k.
  • tjiangtjiang Posts: 2
    That is good size saving, what about used BMW? Is 6.1% duty still effect on those cars too? what I heard is the Bimmers from the states don't have those 4 years free maitainence services carried over.What tough choice to make. I guess three-four years old ones would be good choices. Maximum your savings
  • maryannemmaryannem Posts: 11
    I sell vehicles in Maine. We do this a lot. When you buy the car you get a temp 14 day plate and are not required to pay any taxes. Wed express mail the title to the border where it waits for 72 hours and then we send the car to our borders free of charge. We have had some New York customers in the same situation and we did everything for them and then put the car on a car carrier for approx $300.00 and have it sent to the New York Canada borders. This still saves lots of money because of no taxes.
  • maryannemmaryannem Posts: 11
    Do some serious checking regarding state tax. I live in Maine close to the canadian border and I sell cars. If you can produce a non Maine license we will give you a 14 day plate and will not require you to pay taxes.
  • kerussokerusso Posts: 24
    Every State is different. In Florida if you have buy a vehicle and have it shipped you do not pay State tax but if you get the free temporary tags and drive the vehicle home then you must pay the State tax. Possibly other States are similar??? I know that sounds weird but I do not make the rules.
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