Key Takeaways
- The Canadian government has repealed its luxury tax on aircraft.
- The measure was introduced in 2022 but had a negative impact on business aviation transactions.
- Industry groups say the change will boost confidence in Canada’s market.
Canada Repeals Luxury Tax on Aircraft
Canadian Government Ends Controversial Tax on Business Jets and Private Planes
The Canadian government has repealed its 10% luxury tax on aircraft, a measure that had hindered competitiveness and driven business elsewhere. The change took effect on November 5, 2025, one day after the release of Budget 2025. Industry groups say the decision is ‘great news for business aviation,’ citing the end of a period of friction between Ottawa and the aviation community. Legal experts note that vendors will no longer need to register or file luxury tax paperwork, simplifying aircraft sales and leasing in Canada.
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