Import Duties for Vehicles Between the US and Canada

Last updated: October 2026

Importing a vehicle across the North American border is a move that promises excitement—whether you’ve found a rare vintage muscle car in Arizona or you’re relocating for a new career in Toronto. However, the financial reality of cross-border transport is often hidden beneath a layer of complex tariffs, retaliatory surtaxes, and federal fees.

As of 2026, the trade landscape between the US and Canada has become increasingly dynamic. Understanding import duties for vehicles before you book transport is the difference between a seamless delivery and an expensive lesson in international trade law. This guide breaks down exactly what you need to budget for when moving a vehicle across the 49th parallel. For the latest rates, see our tariffs and import fees page.

When duties, taxes, and fees apply

The first thing you must realize is that “importing” isn’t just a matter of driving across the line. Both the Canada Border Services Agency (CBSA) and US Customs and Border Protection (CBP) view a vehicle as a significant piece of merchandise.

Importing into Canada

If you are bringing a vehicle into Canada, you are generally looking at three primary “entry” costs:

• GST (Goods and Services Tax): A flat 5% tax applied to the vehicle’s converted Canadian dollar value.
• Provincial Taxes: Depending on your destination province, you may pay PST, HST, or QST at the time of registration.
• Excise Taxes: A flat $100 fee if your vehicle has air conditioning, and a potential “Green Levy” (Gas Guzzler Tax) for fuel-inefficient vehicles, ranging from $1,000 to $4,000.

Importing into the USA

For those moving a vehicle south, the US applies a regular duty based on the vehicle type:

• Passenger Cars: 2.5%
• Trucks: 25% (the infamous “Chicken Tax,” though USMCA often waives this for North American builds).
• Motorcycles: Either free or 2.4%.

On top of regular duty, most passenger vehicles and light trucks built outside the US and under 25 years old are subject to the 25% Section 232 tariff. For USMCA-qualifying vehicles built in Canada or Mexico, it applies only to the non-US content. Vehicles 25 years or older are excluded from Section 232, but many countries of origin face a Section 301 tariff of 10% or 12.5%.

Before diving into the numbers, it is wise to consult our US-Canada car import guide to ensure your specific vehicle meets the safety and emission standards of the destination country.

How vehicle origin can change the cost

The single most influential factor in your duty calculation is the Country of Origin—not where you bought the car, but where it was manufactured.

The USMCA (CUSMA) Advantage

Under the Canada-United States-Mexico Agreement (USMCA), most vehicles manufactured in North America can be imported free of regular duty. If the first character of your VIN is a 1, 4, 5, or 7 (USA), 2 (Canada), or 3 (Mexico), you likely qualify for preferential treatment.

Canada’s Surtax on US-Built Vehicles

You must be aware of the current trade climate. Since April 2025, Canada has applied a 25% surtax on US-made passenger vehicles and light trucks, both new and used:

• CUSMA-Compliant US vehicles: The surtax applies only to the portion of the vehicle’s value that isn’t Canadian or Mexican content. The CBSA assumes 15% Canadian or Mexican content unless you show more, so the surtax is often applied to 85% of the value.
• Non-CUSMA US vehicles: The full 25% surtax applies, plus the regular 6.1% duty.
• Vehicles built outside North America: If the vehicle was manufactured in Europe or Asia (e.g., a BMW made in Germany or a Toyota made in Japan), there is no surtax, but you will likely pay a 6.1% MFN duty plus the standard taxes, regardless of whether you bought it from a US dealer.
• Vehicles over 25 years old: Vehicles manufactured more than 25 years before import and still in original configuration enter duty-free and are exempt from the surtax.

Other border charges to budget for

Beyond the high-level duties, several “smaller” fees can add up to a significant sum. Budgeting for these ensures you aren’t caught off guard at the terminal.

Registrar of Imported Vehicles (RIV) Fee

If you are importing a vehicle under 15 years old into Canada, it must be entered into the RIV program. The fee is $325 plus tax. This covers the administrative costs of ensuring your vehicle meets Canadian Motor Vehicle Safety Standards (CMVSS).

The 72-Hour Rule and AES Filing

The US government requires that all used self-propelled vehicles being exported be reported to US Customs at least 72 hours before they reach the border. This involves an Automated Export System (AES) filing. While you can try to navigate the ACE portal yourself, most people find it much safer to have a professional handle the ITN (Internal Transaction Number) generation to avoid heavy fines or vehicle seizure. See our US-Canada customs documents page for the full checklist.

Gas Guzzler Taxes

Both nations penalize vehicles with low fuel economy. If you are importing a high-performance sports car or a heavy-duty vintage SUV, you could face a “Green Levy” in Canada or a “Gas Guzzler Tax” in the US that can reach several thousand dollars. Always check the vehicle’s fuel economy rating against the current tax brackets before purchasing.

How shipping and brokerage affect the total

Your choice of transport and how you handle the paperwork directly impacts your final “landed cost.”

Customs Brokerage Fees

While you can technically “self-clear” a vehicle if you meet it at the border, it is rarely practical for modern logistics. A customs broker acts as your legal agent, preparing the entry, paying the duties on your behalf, and ensuring the VIN is cleared through the national databases. Brokerage fees typically range from $250 to $500, but they save you from the risk of your vehicle being denied entry and stuck in a bonded warehouse.

Shipping Logistics

The cost of the transport itself—whether open or enclosed—is separate from the duties. In Canada, GST is calculated on the vehicle’s value for duty plus any duty and excise taxes. Transportation costs after the vehicle leaves the place where it was shipped to Canada are generally not included in the value for duty.

To get a clear picture of these combined costs, you can get a cross-border car shipping quote that accounts for your specific route and vehicle type.

Ways to avoid surprise import costs

The goal of any successful import is to avoid the “Border Surprise”—a phone call from a customs agent demanding a five-figure payment you didn’t expect.

• Verify the Recall Clearance: You cannot complete a Canadian import if there are open safety recalls. Get a manufacturer’s letter confirming all recalls have been addressed before the car leaves the lot.
• Check the 15-Year Rule: Vehicles 15 years or older are exempt from RIV requirements in Canada, significantly simplifying the process and reducing fees.
• Check the 25-Year Rule: Vehicles more than 25 years old in original configuration avoid Canadian duty and the surtax.
• Clean the Undercarriage: Soil and organic matter are major red flags for agricultural inspectors. A dirty undercarriage can lead to a “soil inspection fee” and a mandatory professional cleaning at the border, costing you time and money.
• Use a Specialized Carrier: General freight movers often don’t understand the nuances of the 72-hour export rule. Working with experts who focus solely on cross-border import guides ensures the paperwork moves as fast as the truck.

FAQs: Importing Vehicles Between the US & Canada

Can I avoid the 25% surtax if I am moving to Canada?

Often, yes. A vehicle imported as part of your settlers’ effects is generally not subject to duty or the surtax, as long as you owned, possessed and used it before you moved. Confirm your eligibility with the CBSA before shipping.

How is the vehicle’s value determined for duty?

Customs usually uses the Bill of Sale. However, if they suspect the price is artificially low, they will use a “fair market value” based on blue book standards or an independent appraisal.

Do electric vehicles (EVs) pay the same duties?

EVs are generally exempt from the Green Levy and gas guzzler taxes. However, they still pay GST, and US-built EVs under 25 years old can be subject to Canada’s surtax on US-made vehicles.

Are classic cars over 25 years old exempt from Canadian duty and the surtax?

Yes, if the vehicle was manufactured more than 25 years before import and is still in its original configuration. It enters Canada duty-free and surtax-free under tariff item 9966.00.00, though GST still applies. See our classic car shipping guide.

What happens if I forget the 72-hour rule?

If the vehicle arrives at the border before the 72-hour window has elapsed, the carrier will be turned away. You will likely be charged for “dry run” fees or storage costs while the vehicle waits in a lot on the US side.

Is the RIV fee refundable if my car fails inspection?

No. The RIV fee is non-refundable. This is why it is critical to check the “Admissibility List” on the RIV website before you even purchase the vehicle.

Do I have to pay taxes in both the US and Canada?

Generally, no. If you are exporting a vehicle from the US, you can often apply for a refund of state sales tax, though this varies by state. You will, however, be required to pay the Canadian taxes at the point of entry.

Navigating the 2026 trade requirements requires precision and up-to-date knowledge. Don’t leave your investment to chance at the border. Let our experts handle the heavy lifting of your US-Canada vehicle import.