📋 Tax

The Difference Between GST, HST, and PST in Canada, and When Each Applies

🇨🇦 Canada ⏰ 4 min read
💡 Key Takeaway

Canada does not have one simple sales tax. The tax on your receipt depends entirely on which province you are in. Here is the complete breakdown of GST, HST, and PST so you always know what you are paying and why.

Quick reference by province and territory

Province / Territory Tax Type Total Rate
OntarioHST13%
Nova ScotiaHST15%
New BrunswickHST15%
Newfoundland & LabradorHST15%
Prince Edward IslandHST15%
British ColumbiaGST + PST5% + 7% = 12%
SaskatchewanGST + PST5% + 6% = 11%
ManitobaGST + PST5% + 7% = 12%
QuebecGST + QST5% + 9.975% = 14.975%
AlbertaGST only5%
Yukon, NWT, NunavutGST only5%

What is GST

GST stands for Goods and Services Tax. It is a federal tax that applies to most goods and services sold in Canada. The rate is 5 percent and it applies nationwide. If you buy something in any province, the GST portion is always 5 percent. Some things are exempt, including basic groceries, prescription drugs, and certain medical devices, but most everyday purchases will include GST.

What is PST

PST stands for Provincial Sales Tax. It is a separate tax charged by certain provinces on top of the federal GST. The provinces that charge PST separately are British Columbia at 7 percent, Saskatchewan at 6 percent, and Manitoba at 7 percent. Quebec has its own version called QST at 9.975 percent. If you live in one of these provinces, you will see both a GST line and a PST or QST line on your receipt.

What is HST

HST stands for Harmonized Sales Tax. It is what happens when a province combines its provincial tax with the federal GST into one single tax. Ontario, Nova Scotia, New Brunswick, Newfoundland and Labrador, and Prince Edward Island all use HST. The combined rate varies by province. Ontario is 13 percent, Nova Scotia is 15 percent, and New Brunswick, Newfoundland, and PEI are also 15 percent. Instead of seeing two separate lines on your receipt, you see one combined HST amount.

What about Alberta and the territories

Alberta is the exception. It has no provincial sales tax at all. Residents of Alberta only pay the 5 percent federal GST, which makes it the lowest tax burden of any province for consumer purchases. This is one of the reasons Alberta is often considered a tax-friendly province for both individuals and businesses.

The three territories, Yukon, Northwest Territories, and Nunavut, follow the same federal GST only model. No additional territorial sales tax applies.

Why does this matter

If you are a small business owner, a freelancer, or someone who travels between provinces, knowing which tax applies to your transaction matters for invoicing, expense tracking, and tax filings. If you collect GST or HST on behalf of your business, you are required to register with the CRA once your revenue exceeds $30,000 in a calendar year.

🏷️
Calculate the exact tax on any purchase Our free GST/HST/VAT Calculator covers every Canadian province and territory, plus VAT rates for the UK, Australia, and countries worldwide. Try the Tax Calculator →
WhatsApp Facebook
Share this tool