The GMC Hummer EV Pickup and SUV may be exempt from Canada’s new luxury vehicle tax, which applies to certain luxury and high-priced passenger vehicles.
The Select Luxury Items Tax Act that became effective in Canada last week applies a new federal tax on passenger vehicles priced from $100,000 and above. The tax to be paid by the consumer is equivalent to either 20 percent of the amount the vehicle is priced above the $100,000 threshold, or 10 percent of the total value of the vehicle, whichever is lower.
While the GMC Hummer EV Pickup has yet to be priced in Canada, it will obviously be costlier than the U.S. market model. The limited-run 2022 GMC Hummer EV Pickup Edition 1, which was offered in the U.S. only, was priced from $110,295, while the series production EV3X trim level starts at $106,245.
Based on the U.S. pricing structure, it would seem as though the GMC Hummer EV would be subject to Canada’s luxury new vehicle tax, however there’s an exemption for vehicles that have a gross vehicle weight rating of more than 3,856 kilograms (8,500 pounds), as they are technically classified as heavy-duty vehicles and are often used by business owners rather than the public. The Hummer EV Edition 1, which was sold in the U.S. only, boasts a GVWR of 10,400 pounds. This significant GVWR rating would seemingly make it exempt from the tax.
GM has not yet shared weight figures for lesser versions of the GMC Hummer EV, so it’s possible lower trim levels like the dual-motor EV2 and EV2X could have a GVWR of under 8,500 pounds. If these versions of the Hummer have a C$100,000-plus base price in Canada and have a GVWR or less than 8,500 pounds, they would be subject to the tax.
GM has already shared Canadian pricing for the 2024 GMC Hummer EV SUV Edition 1. This model currently carries an MSRP of C$128,348 in Canada including the mandatory destination freight charge. In this case, the vehicle would face an additional tax of C$5,670 under Canada’s new Select Luxury Items Tax Act, bringing the transaction price to C$134,018. If, of course, it has a GVWR of less than 8,500 pounds.