Government of Canada adjusts the taxable value threshold for zero-emission vehicles.

Canada's Minister of Finance and National Revenue announced a proposal to increase the luxury tax exemption threshold for fully electric and hydrogen-powered vehicles from $100,000 to $150,000, effective tomorrow, subject to parliamentary approval. This measure, part of Budget 2026, aims to support the accelerating shift towards electric vehicles and a cleaner economy. Budget 2026 also committed $587 million over five years, starting in 2027-28, to expand EV charging infrastructure.