How much tax will I have to pay to import a boat from England to Canada in 2025?
Executive summary
Importing a pleasure boat into Canada in 2025 triggers federal GST of 5% on the value including any duty, and provincial sales tax or HST may also apply depending on where you clear customs (GST/HST rules: [1]; CBSA obligation to declare and pay applicable duties and taxes: [2]). High‑value vessels were previously subject to a federal “luxury” tax (20% over $250,000 or 10% of full value) but at least one industry report says Ottawa moved to remove that yacht/aircraft measure in the 2025 budget; available sources disagree or leave room for change so you must confirm current law with CBSA/CRA at time of import (luxury tax described: [3]; report of removal in 2025 Budget: [4]).
1. What federal taxes you can expect at the border — GST (the baseline cost)
Every imported good for personal use is subject to the federal Goods and Services Tax (GST) or the federal portion of the HST. GST is calculated on the Canadian dollar value of the boat, and that valuation includes duty and excise taxes where applicable (GST/HST on imports: [1]). CBSA requires you to declare and pay applicable duty and taxes upon initial arrival and will assess based on the bill of sale, proof of ownership and tariff classification (CBSA import rules: [2]).
2. Provincial sales tax or HST — where you land matters
Provincial tax treatment depends on the province where you import/clear the vessel. Some provinces use HST (which combines provincial sales tax with GST) while others levy a separate PST in addition to GST or have no provincial sales tax. Practical guides note provinces with HST include Ontario and several Atlantic provinces; Alberta and some territories have no provincial retail sales tax, which affects the total at import (border guides: [5]). The CRA guidance confirms that whether GST or HST applies depends on the province you reside in and where the import is processed (GST/HST on imports: [1]).
3. Customs duty — not always, but it can apply
Duty depends on the boat’s origin and tariff classification. CBSA and its online estimator can give you rates once you identify the vessel’s tariff code; the agency’s estimator tool is designed to provide a personal‑use estimate but cautions the final amount may vary with classification and exemptions (CBSA estimate tool: [6]). Some boats built in Canada, the U.S. or Mexico may be duty‑exempt under trade rules — whether duty applies to a specific craft must be checked at import (CBSA guidance: [2]; estimator caveat: [6]).
4. The luxury tax question — unsettled signals in 2025 reporting
Commercial advisories described Canada’s Select Luxury Items Tax Act applying to vessels manufactured after 2018, with a calculation of the lesser of 20% of value above $250,000 CAD or 10% of full value plus duties (trade firm summary: [3]). A separate industry story reports the 2025 federal budget removed the luxury tax on yachts and private jets for import and sale — specifically mentioning boats above $250,000 CAD — but that account is an industry outlet and should be validated against official CRA/Finance Canada publications before relying on it for import planning (industry report of removal: [4]). Available sources do not present an authoritative government cancellation notice; confirm with CBSA/CRA at import (not found: official repeal text in current reporting).
5. Practical advice: documents, ports, and hidden costs
CBSA requires bill of sale and proof of ownership and will process marine pleasure craft at designated marine sites or the nearest CBSA office; failure to declare risks penalties (CBSA import rules: [2]). Expect brokerage fees, possible service fees from a customs broker, and provincial licensing or trailer taxes as additional cash items at or after import — industry examples list duties, GST and service fees as part of the total landed cost (customs/broker notes: [3]; CBSA processing rules: [2]).
6. Things that change fast — tariffs, surtaxes and political signals
Tariff policy and surtaxes have shifted in 2022–2025 (examples: Canada’s responses to US tariffs and interim surtax orders). CBSA’s estimator and several industry posts warn that legislation, surtax orders and tariff classifications can change quickly and materially affect final duty/tax amounts; the CBSA estimator includes a disclaimer that rates and exemptions can change (estimator caveats and surtax mention: [6]; travel guidance on retaliatory tariffs: [7]). Industry blogs urge ongoing checks because suspension, reinstatement or removal of measures (including the luxury tax) has occurred in 2025 (market commentary: [8]).
Actionable next steps: contact CBSA before import to get an up‑to‑date duty/tax estimate and tariff classification, confirm with CRA whether the Select Luxury Items Tax applies to your specific vessel, and plan for GST plus provincial tax depending on where you clear the boat (CBSA import rules: [2]; GST/HST rules: [1]; estimator tool caveats: [6]).