Oct 27 2009
What’s the duty/tax on Plasma/LCD HD TV?
Lately I was asked a lot of questions regarding importing large screen Plasma/LCD TVs from the US.
After a brief survey, I wasn’t surprised that there’s a sharp price disparity between the US and Canadian prices. Take the popular Sharp – AQUOS 52″ 1080p Flat-Panel LCD HDTV for example, both BestBuy.com and BestBuy.ca have a special offer, one at US$1299, the other at CA$1,899. 46% price difference.
So it makes all the sense to shop in the US. Or is it?
Now how much duty or tax will you be charged? This may change the equation significantly. Here’s the list of taxes that you’ll have to pay when importing that big screen TV.
- US state tax, depending on which state you purchase the TV. New Hampshire has 0% state tax, whereas Washington taxes 6.5%.
- Duty of 5% (8528.72, covering high-definition, flat-screen, projection, CRT ), if the TV is not made in Mexico or US. One reader reported 7% being labeled as “luxury tax”. I cannot find reference on excise tax.
- GST/PST on top of all above.
If you have stayed outside Canada over 48 hours, you can claim your personal exemption of $400 or $750.
One tip, many good brand TV, e.g. Panasonic 50″ Plasma T.V, are made in Mexico. You can get away without paying the duty by choose those brands. When you cross the border, choose a senior-looking officers who would be more experienced in dealing with NAFTA and duty issues, and make less mistake in calculating the duty/tax.
Do your math, then you know whether it’s worthwhile.
Update Jan. 6 2010: A reader reported that the duty of an HD display TV is 3.5%, assuming it’s made outside North America.
10 responses so far. Leave a comment
Hi! I am a student in the US, and bought a Sharp TV to bring back home (Quebec) during the holidays. I paid $635, which includes PA taxes (6%).
If I understood your posts correctly, this should fall under my $750CAD exemption, and I shouldn’t have to pay canadian taxes or duties. That is regardless of where it was made, because it falls under the 750CAD. Correct?
[Reply]
BoB
Reply:
November 28th, 2009 at 3:32 pm
Yes, that’s the case.
[Reply]
simon
Reply:
January 2nd, 2010 at 7:30 pm
Just as an update, I ended up having to pay duties on everything, along with taxes. Being a student in the usa makes me a non_resident. On a $600 tv, it was $100 of taxes and duties in quebec.
[Reply]
BoB
Reply:
January 2nd, 2010 at 11:07 pm
Simon,
Thanks for letting us know the update. Other readers will need to be careful about whether being a “Resident”.
[Reply]
If you claim your 750 and your TV costs over 1,000.00 is the duty on the difference? or on the whole?
and do I understand you right; that you pay the state tax ( PA 6%) and then the gst/pst again at the border?
[Reply]
BoB
Reply:
January 2nd, 2010 at 1:25 pm
The duty is on the difference. Yes, you’ll pay both US and Canadian taxes. I’m not sure if the Canadian tax is on top of the total or before US tax. Let us know if you find out.
[Reply]
John
Reply:
June 1st, 2010 at 8:31 am
Sticker Price + State Taxes = Total Paid.
Total Paid X Exchange Rate = Canadian Value (Value for Tax)
Value for Tax + Excise Taxes = Amount you will pay PST/GST on.
So yes, you’re paying PST/GST on not only state sales tax, but Excise Tax as well.
[Reply]
Hello BoB,
Don’t want to disturb with the some question here, again and again. I’m resident in Canada. Going for 7 days to MI and looking for buy LedTV over 3000$. Can u say correctly what price i will need to pay (TAX or Duty) for this “material item – TV” at the Canada border?
Thank you for your help and my God bless You!
[Reply]
Over 7 days, you will get your $750 Exemption, so assuming the dollar is at par, you will pay
$3000 for the TV + state sales tax (6%) = 3180 US
Assuming PAR $1 US = $1 CAD
3180 – 750 = $2430
Duty of 3.5% on $2430 = 85.05
GST (on 2515.05) = 125.75
PST (on 2515.05) = 201.20
So, your $3000 Sticker Price TV, has cost you
3592, after factoring in State sales tax, Candian Duty, PST, and GST.
[Reply]
i just wish that LCD TVs would have more contrast and brighter colors like CRTs*`-
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