The proposed Luxury Tax

The Government of Canada may introduce a luxury tax starting on January 1, 2022. The luxury tax will apply to new cars and aircraft with a retail sale price over $100,000, and new boats over $250,000. 

The tax would be calculated at the lesser of 20 per cent of the value above $100,000 for cars and aircraft and $250,000 for boats) or 10 per cent of the full value of the luxury car, boat or aircraft. 

The government has released the budget proposal and in the stage of seeking consultation. The details can be found in the technical background paper.