Getting a car is no longer a luxury. However, like most things in life, you want to pay a fair price for your purchase. In turn, you just might be wondering, are cars cheaper in Alberta than in BC to help you save money?
The tax is lower for people who live in Alberta, because Alberta has no provincial sales tax. BC residents don’t get that saving by buying in Alberta. BC charges PST on a vehicle bought in another province and brought into BC, unless a specific exemption applies.
Still, you need to know what to consider when buying a car in any of these provinces. In this article, we discuss whether cars are cheaper in Alberta than in British Columbia and every other thing you need to know.
Is buying a car in Alberta cheaper?
For an Alberta resident, the tax is lower. At a dealer, you pay 5% GST and no provincial sales tax in Alberta. At a BC dealer, you pay 5% GST plus PST. As of November 2026, BC’s PST on a passenger vehicle bought from a dealer starts at 7% for a price under $55,000.
That comparison only covers tax. It doesn’t tell you the sticker price of a given car in either province, which depends on the model, the seller and the vehicle’s condition. If you’re living in BC and looking to get a car in Alberta, there are factors you need to consider before proceeding.
Buying A Car in Alberta
Alberta doesn’t charge a provincial sales tax on vehicle sales. If you buy from a dealer, you pay 5% GST. Under Alberta’s all-in pricing rules, GST and financing costs are the only amounts a dealer can add to the advertised price. A private seller who isn’t a GST registrant doesn’t charge GST.
For a private sale in Alberta, you must complete a standard bill of sale to transfer ownership of the car.
If you don’t live in Alberta, you’d register and insure the car in your home province rather than in Alberta. Also, remember that a lower tax bill doesn’t automatically mean you would get a good car deal there.
Buying a Car in British Columbia
BC charges PST on top of GST at a dealer, and the rate rises with the price. As of November 2026, the PST rate for a passenger vehicle bought from a dealer is:
- 7% under $55,000
- 8% from $55,000 to $55,999.99
- 9% from $56,000 to $56,999.99
- 10% from $57,000 to $124,999.99
- 15% from $125,000 to $149,999.99
- 20% at $150,000 and over
A private sale doesn’t include GST when the seller isn’t a GST registrant, but PST still applies. The rate for a passenger vehicle bought privately is 12% under $125,000, then 15% and 20% in the same top two price bands. The tax is generally charged on the greater of the purchase price and the vehicle’s average wholesale value. Zero-emission vehicles have different price thresholds.
These rates don’t change if you buy in another province. A BC resident who buys from a dealer outside BC and brings the car in pays PST on its depreciated purchase price. After a private sale elsewhere in Canada, PST is based on the greater of the depreciated value and the average wholesale value, and it’s paid when you register the car with ICBC. People who are moving to BC may qualify for an exemption if they owned the vehicle for at least 30 days before becoming a resident, the vehicle arrives within one year of that date, and it’s for non-business use. The BC bulletin has the full rules.
Now that you know the implications of buying cars in both provinces, and you’ve decided to buy in Alberta, ensure you take extra caution before you sign and deposit. Ask more questions for clarity, and go over the contract as much as you can so you can identify loopholes or terms that aren’t favorable. AMVIC, Alberta’s vehicle industry regulator, notes that there is no cooling-off period after you sign a purchase contract.
Things to Consider When Buying a Car in Another Province
If you’re considering going to Alberta from British Columbia to get a car, some factors are vital. Below are some of the things you need to consider before you buy a car in another province:
1. Time and Effort
Getting a car from another province requires necessary research on the dealers or the seller you’re buying from. You also need to understand the provincial regulations where you’re buying from and what your province says about importation. All these take time and effort, so you might need to consider if all these are worth it.
2. Provincial Requirement and Registration
Closing the deal on a car is not the end of owning it. To drive a car home to BC, ICBC says you need an in-transit permit from the province where you bought it, plus temporary insurance from a BC Autoplan broker. The requirements vary for each province. So, you need to confirm all these.
3. Tax Payment
Tax rules vary from one province to another. GST, PST, HST, or RST are some of the taxes you might have to pay. Check what your home province charges when you bring in a vehicle, not only what the seller’s province charges.
4. Vehicle Registration Authority
It’s essential you also contact your province’s vehicle registration authority before you do the paperwork of any car purchase. In BC, ICBC’s importing guide says a vehicle from another province must pass a safety inspection at a designated facility. Qualified private vehicles from Alberta, Saskatchewan or Manitoba are exempt from that inspection, so ask an Autoplan broker whether yours qualifies.
5. Additional information
To register, insure and license the car in BC, ICBC asks for the previous registration or New Vehicle Information Statement, the original bill of sale, and a signed “passed” inspection report where an inspection applies. The broker will also confirm the VIN and odometer reading.
In Conclusion
Alberta’s lack of a provincial sales tax helps people who live there. If you live in BC, PST generally still applies when you bring the car home, so compare the full cost, including PST, travel, temporary insurance and any inspection, before you decide. There are so many things involved in buying a car, more so, buying from another province. So, understanding these things puts you in the right spot to getting a good deal and making the best decision.