How Canadian sales tax works
Canada layers up to two sales taxes on most purchases, and which ones apply depends entirely on the province:
| System | What it is | Where |
|---|---|---|
| GST only (5%) | The federal Goods and Services Tax alone | Alberta, Yukon, Northwest Territories, Nunavut |
| HST | GST and the provincial portion harmonized into one tax, collected federally | Ontario (13%), New Brunswick, Newfoundland and Labrador, PEI (15%), Nova Scotia (14%) |
| GST + PST/RST | Federal GST plus a separate provincial sales tax | British Columbia (5% + 7% PST), Saskatchewan (5% + 6% PST), Manitoba (5% + 7% RST) |
| GST + QST | Federal GST plus the Quebec Sales Tax, administered by Revenu Québec | Quebec (5% + 9.975% QST) |
total = amount + tax
Both GST/HST and QST are calculated on the pre-tax price (QST stopped compounding on GST in 2013), so a single combined percentage is accurate for every province today.
Worked examples
Ontario (13% HST): a $1,000.00 purchase carries $130.00 of HST, for a total of $1,130.00.
British Columbia (5% GST + 7% PST): the same $1,000.00 purchase carries $50.00 GST plus $70.00 PST — $120.00 of tax in all, for a total of $1,120.00.
Current rates by province
| Province / territory | GST | HST | PST/QST | Combined |
|---|---|---|---|---|
| Alberta | 5.0% | — | — | 5.0% |
| British Columbia | 5.0% | — | 7.0% PST | 12.0% |
| Manitoba | 5.0% | — | 7.0% RST | 12.0% |
| New Brunswick | — | 15.0% | — | 15.0% |
| Newfoundland and Labrador | — | 15.0% | — | 15.0% |
| Nova Scotia | — | 14.0% | — | 14.0% |
| Northwest Territories | 5.0% | — | — | 5.0% |
| Nunavut | 5.0% | — | — | 5.0% |
| Ontario | — | 13.0% | — | 13.0% |
| Prince Edward Island | — | 15.0% | — | 15.0% |
| Quebec | 5.0% | — | 9.975% QST | 14.975% |
| Saskatchewan | 5.0% | — | 6.0% PST | 11.0% |
| Yukon | 5.0% | — | — | 5.0% |
Nova Scotia's HST dropped from 15% to 14% on 1 April 2025 — this table already reflects that change, taken from the CRA's published rate periods.
FAQ
Why doesn't Alberta have a provincial sales tax?
Alberta has never enacted one — only the 5% federal GST applies, giving it the lowest sales tax burden in Canada. The three territories are in the same position.
Are groceries taxed?
Basic groceries (most raw and staple foods) are zero-rated for GST/HST across Canada. Snack foods, carbonated drinks and prepared/restaurant food are generally taxable. Provincial taxes broadly follow similar exemptions but with their own lists — check the province's bulletin for edge cases.
Do out-of-province sellers charge the buyer's province's tax?
For GST/HST, yes — registered sellers charge the rate of the province the goods are delivered to (the "place of supply" rules). PST provinces additionally require sellers with sufficient presence or sales into the province to register for that province's PST separately.
When must a small business register for GST/HST?
Once worldwide taxable sales exceed $30,000 over four consecutive calendar quarters, registration is mandatory. Below that you're a "small supplier" and may register voluntarily to claim input tax credits.
Is this calculator's "remove tax" the same as a reverse sales tax calculator?
Yes — enter a tax-inclusive total and it divides by (1 + combined rate) to recover the pre-tax price and the tax paid, which is useful for expense claims and bookkeeping from receipts.
Sources
GST and HST rates by period: Canada Revenue Agency — GST/HST rate table (open.canada.ca), Open Government Licence – Canada. Provincial sales taxes: British Columbia PST, Manitoba RST, Quebec QST, Saskatchewan PST, . Last checked 2026-08-23.