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Chart: Where you should buy your next car

Sales tax varies widely across Canada. For example, a $30,000 car costs $3,150 more in PEI than it does in Alberta.

Sales tax rates vary widely across Canada. The average, when you include GST, is 12.35%, ranging from 5% in Alberta where you only pay GST to 15.5% in PEI. These sales tax dollars can really add up. If you bought a $30,000 car in Alberta, the sales tax would be $1,500. In PEI, you would pay $4,650, which amounts to $3,150 more. If we took this savings and purchased gas at $1.30 per litre and got an average mileage of 8 liters per 100 km, the $3,150 savings from the Alberta purchase would buy enough gas to drive 30,288 kilometers. That’s almost 6.5 trips from Calgary to Charlottetown. The next best place to buy is Saskatchewan, where the $1,650 tax savings would take you 15,865 km. Closest to PEI are Quebec and Nova Scotia, where you would only save $158 and $150 respectively, allowing you to drive an average of 1,491 extra kilometres.