Personal Finance

tax on home but not car insurance

  • Last Updated:
  • Jun 8th, 2021 10:20 am
[OP]
Member
May 4, 2020
218 posts
38 upvotes
Toronto, On

tax on home but not car insurance

Hi
My insurance company added tax to my home insurance but 0 taxes on car insurance? Why is that? Why not both 0 or both I need to pay? Thank you very much.
4 replies
Deal Addict
User avatar
Dec 4, 2007
4056 posts
1724 upvotes
Quebec
i dont know for ontario, but in quebec insurance is taxed at 9% for any kind of insurance, health, car, home, whatever
Deal Addict
May 16, 2017
1691 posts
2140 upvotes
In Ontario, auto insurance isn't taxed (at least not HST - there are other hidden taxes).

Why? Because it isn't - the gov't decided at some point in the distant past that auto insurance wasn't subject to provincial sales tax and therefore remained exempt when HST was introduced.

https://completecar.ca/resources/is-the ... n-ontario/
Deal Addict
User avatar
Oct 13, 2007
3706 posts
2367 upvotes
Edmonton
lwlwlwlw wrote: Hi
My insurance company added tax to my home insurance but 0 taxes on car insurance? Why is that? Why not both 0 or both I need to pay? Thank you very much.
You should state what province you are in when asking questions of this sort.
In Ontario, property insurance policies are charged only the provincial portion of the HST (8%).
Why? Well because your appointed provincial government can tax what they want or shut down businesses due to a “pandemic” or anything else they see fit.

You can lobby your leader, Ford, to state that it should be both or none but this would likely lead to being taxed on both auto & home insurance.

Here in Alberta, we are taxed on neither.
Deal Addict
Sep 14, 2012
1605 posts
1132 upvotes
Montreal, QC
starchoice wrote: Here in Alberta, we are taxed on neither.
Yes but Alberta doesn't have any provincial sales tax so I don't think that it's unusual in your situation

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