IKEA is introducing a 'second-hand tax' in Canada and here's how it saves you money

Don't pay HST twice with this new SHT! 👀

ikea in canada

IKEA store in Canada.

Attention shoppers, IKEA is adding a "second-hand tax" in Canada for a limited time.

But don't worry, this tax actually saves you money instead of making you pay more on your purchases.

IKEA Canada announced that a second-hand tax — which is also called a SHT — is being introduced at certain store locations.

It's meant to promote sustainability and affordability by offering shoppers a discount that reduces the tax they pay on used products.

IKEA noted that Canadians pay tax on second-hand items even though the tax was already paid when the product was first bought.

"Second-hand items may have lost their original look, packaging, and price, but they never lose the tax," the retailer said.

This second-hand tax, or SHT, will save customers from paying the harmonized sales tax — also known as the HST — twice.

Since the HST is 13%, the SHT will discount the price of second-hand items by 13% so the tax is brought down to zero.

Between Tuesday, April 2 and Thursday, April 11, 2024, IKEA locations in Ontario will offer SHT to IKEA Family members.

That means every item purchased in-store at As-is marketplaces across Ontario will be reduced by 13% to offset the tax.

As-is marketplaces are where you can find discontinued products, gently used items, display models, and more second-hand furniture.

IKEA noted that the SHT is only available for a limited time because it's not "a permanent solution."

Also, the furniture retailer called on the government to stop the double tax on second-hand items so Canadians can get used products for less.

Since this tax break is only available to IKEA Family members, you need to sign up for the loyalty program which can be done online for free.

You get benefits like member-only product discounts, full access to the As-is online marketplace, free IKEA food court meals, free coffee or tea in-store, and more.