Financial Planning -> Save Money -> Fuel Efficient Vehicles
Rebates for Fuel Efficient Vehicles
Some provinces provide rebates when fuel efficient vehicles, hybrid vehicles, or alternative fuel vehicles are purchased. See the following links:
In BC there is also a carbon tax on fuel to encourage fuel conservation. See BC Ministry of Finance on Carbon Tax.
Ontario Rebates for Fuel-Efficient Vehicles
For a limited time, Onario drivers who purchase new plug in electric vehicles (EVs) and charging stations for private use can receive rebates, of up to $8,500 for the purchase or lease of an eligible electric vehicle, and up to $1,000 on the purchase and installation of an eligible charging station. See the Ontario Government information Cars are EVolving.
Quebec Rebates for Fuel-Efficient Vehicles
The rebate for an all-electric or a plug-in hybrid vehicle is either $4,000 or $8,000, and for a non-plug-in hybrid vehicle is $500. Financial assistance is available for the purchase and installation of a 240 volt charging station at your home, for up to 50% of eligible expenses or $1,000, whichever is less. See the Government of Quebec Discover Electric Vehicles website for more information, including lists of eligible vehicles.
Canadian Excise Tax on Fuel-Inefficient Vehicles
To encourage Canadians to make eco-friendly consumer choices, the Government of Canada adopted an excise tax (or green levy) on fuel-inefficient vehicles. See Canada Revenue Agency publication ETSL64 Excise Tax on Fuel-Inefficient Vehicles. There is a list of vehicles and their applicable excise tax for each year after 2006. For 2015, the highest tax is $4,000 per vehicle, but the majority of vehicles have no tax.
Which Vehicles are Fuel-Efficient?
Natural Resources Canada has information on the Most Fuel-Efficient Vehicles. Even if you don't get a rebate, you can save money on gas!
Tax Tip: Even if you don't get a rebate, you may be able to save a lot using a fuel-efficient vehicle!
Revised: April 06, 2019
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