If you’ve been considering a high-value boat purchase in Canada, there’s good news.
As part of Federal Budget 2025, the Government of Canada announced that the federal luxury tax on boats and yachts is no longer payable, effective November 5, 2025. This is a significant change for current and prospective boat owners.
What was the luxury tax?
Since 2022, Canada applied a federal luxury tax to certain high-value items, including boats priced over $250,000. The tax could add tens of thousands of dollars to the purchase price of a vessel, on top of GST/HST.
What’s changed?
As of November 5, 2025:
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Boats and yachts are no longer subject to the federal luxury tax
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This applies to new purchases, imports, and qualifying transactions
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The change removes both the extra cost and much of the administrative burden
What this means for boat owners
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Lower purchase costs for higher-value vessels
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Improved affordability for buyers who previously delayed purchases
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Simpler imports and deliveries into Canada
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Greater confidence when planning upgrades or ownership transitions
This change is especially meaningful for buyers shopping in the premium and luxury boating market.
What didn’t change
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GST/HST still applies as usual
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The luxury tax still applies to certain high-value vehicles (cars and trucks over $100,000)
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Provincial taxes and fees remain unchanged
HarbourFront Marine perspective
We see this as a positive step for Canadian boating. Removing the luxury tax helps keep Canada competitive, supports marine businesses, and makes vessel ownership more accessible without compromising safety or service standards.
If you’ve been waiting on the sidelines because of the luxury tax, now may be the right time to revisit your plans.
