Is There a Luxury Tax on Wheelchair Vans?

In this article, you'll learn why our wheelchair vans aren't taxed under the Canada Luxury Tax.

If you’ve been considering buying an accessible vehicle in Canada, you may have wondered if there is a luxury tax on wheelchair vans.

Or, you clicked on this article to learn what the newly-implemented Canada Luxury Tax actually is.

For whatever reason you’re here, by the time you’re done reading you’ll know the answers to these 2 questions:

What is the Canada Luxury Tax?
Why don’t our quotes include it?

First, you’ll learn what the Canada Luxury Tax is.

What is the Canada Luxury Tax?

The Canada Luxury Tax is a new tax the Canadian Government has put on some aircrafts, passenger vehicles, and boats, according to the Government of Canada website. It was proposed in the 2021 federal budget and came into effect in early September 2022.

You can calculate the tax as the lesser value of either 10 percent of the total purchase price or 20 percent of the amount that exceeds $100,000. You then add this number to the total price before other taxes such as GST and HST.

To put this into perspective, a $100,000 luxury boat would have a Canada Luxury Tax amount of $10,000. A $250,000 luxury aircraft, however, would have a Canada Luxury Tax amount of $30,000. Read the full explanation of the Canada Luxury Tax here.

Is there a luxury tax on wheelchair vans?

None of our vans at MoveMobility fall under the luxury tax qualifications–meaning you don’t have to pay a luxury tax when you purchase one of our vehicles.

This is because the code states that a vehicle is excluded from the tax if one of the scenarios is true:

the vehicle “specially equips or adapts the subject vehicle for its use by, or in transporting, an individual using a wheelchair”
the vehicle “specially equips or adapts the subject vehicle with an auxiliary driving control to facilitate the operation of the subject vehicle by an individual with a disability”

There is currently no scenario where this isn’t true.