Work out your car payment in Canada with provincial sales tax, trade-in and fees, monthly or bi-weekly. A $40,000 vehicle in Ontario with $5,000 down, financed for 72 months at 6.99%, costs about $685.18 a month including 13% HST.
Car Loan Calculator (Canada)
Payments with provincial sales tax and trade-in · Updated October 12, 2026
- Sales tax
- –
- Amount financed
- –
- Total interest
- –
- Total cost
- –
Tax is calculated on the price after the trade-in, which is how most dealers handle trade-ins. Some vehicles have extra provincial taxes (for example British Columbia’s higher PST on expensive cars).
How the payment is calculated
- Sales tax = (price − trade-in) × your province's combined rate.
- Amount financed = price + tax + fees − down payment − trade-in.
- Payment = amount × r ÷ [1 − (1 + r)−n], where r is the rate per payment period and n is the number of payments.
In the Ontario example, HST is $5,200, so $40,200 is financed. Over 72 months at 6.99% you pay about $9,133 in interest.
Same car, different provinces
| Province | Tax on $40,000 | Monthly payment (72 months, 6.99%) |
|---|---|---|
| Alberta (5%) | $2,000 | $630.64 |
| British Columbia (12%) | $4,800 | $678.36 |
| Ontario (13%) | $5,200 | $685.18 |
| Quebec (14.975%) | $5,990 | $698.64 |
| New Brunswick (15%) | $6,000 | $698.81 |
Long terms cost more
Terms of 84 or 96 months lower the payment but add interest and keep you owing more than the car is worth for longer. If you plan to trade in within a few years, a shorter term protects you from negative equity.
FAQ
Does a trade-in reduce the sales tax?
When you trade a vehicle in to a dealer, tax is generally charged on the difference between the new vehicle's price and the trade-in value, which is a real saving compared with selling privately.
Monthly or bi-weekly?
Bi-weekly payments match many pay schedules. Paying 26 times a year at half the monthly amount (an accelerated schedule) pays the loan off sooner; a regular bi-weekly schedule spreads the same total over the term.
Related calculators
Sources
Figures current as of October 12, 2026
Each formula is checked against a separate test sheet with at least three worked examples. Results are estimates based on the numbers you enter and the published rules; your actual figures may differ. This is general information, not financial or tax advice.
Spotted a mistake? Contact us and we will fix it and update the date above.