Canada's sales tax system is one of the more complex in the developed world, and a source of genuine confusion for newcomers, small business owners, and even experienced Canadians who move between provinces. Is it GST, HST, or PST on this purchase? Why did my Ontario receipt show one rate and my BC receipt show something different? Why does Quebec have two different tax registration numbers? This comprehensive guide explains the entire Canadian sales tax landscape — GST, HST, and PST: in one definitive resource.
Canada's Three Tax Systems
GST (federal): 5% everywhere | HST (harmonized): 13–15% | PST/QST/RST: 6–9.975% separately
Five provinces use HST (one combined rate). Four provinces charge GST + separate provincial sales tax. Alberta and the territories charge only federal GST.
The Three Canadian Tax Systems Explained
1. GST. Goods and Services Tax (Federal)
GST is Canada's federal value-added tax, administered by the CRA. It applies at 5% on all taxable supplies sold in Canada. Businesses register with the CRA, collect GST from customers, claim Input Tax Credits (ITCs) on business purchases, and remit the net amount to the CRA. GST applies in every province and territory: it's the only tax in Alberta and the territories, and it's combined into the HST in the harmonized provinces.
2. HST. Harmonized Sales Tax
HST is a combined federal + provincial tax that participating provinces have "harmonized" with the federal GST. Instead of dealing with two separate taxes, businesses collect one HST rate and remit it to the CRA, which distributes the provincial portion to the province. Current HST provinces: Ontario (13%), Nova Scotia (15%), New Brunswick (15%), PEI (15%), and Newfoundland & Labrador (15%).
3. PST / QST / RST. Provincial Sales Taxes
Non-HST provinces have their own provincial sales taxes, charged separately from the federal GST. They have separate registration, separate remittance, and often separate taxable bases:
- BC: PST (Provincial Sales Tax) at 7%, administered by BC Ministry of Finance
- Saskatchewan: PST at 6%, administered by Saskatchewan Revenue
- Manitoba: RST (Retail Sales Tax) at 7%, administered by Manitoba Finance
- Quebec: QST (Quebec Sales Tax) at 9.975%, administered by Revenu Québec (separate from the CRA entirely)
Complete Canada Sales Tax by Province 2026
| Province | System | GST | Provincial Tax | Combined Rate | Tax Authority |
|---|---|---|---|---|---|
| Alberta | GST only | 5% | 0% | 5% | CRA |
| British Columbia | GST + PST | 5% | 7% PST | 12% | CRA + BC Ministry of Finance |
| Saskatchewan | GST + PST | 5% | 6% PST | 11% | CRA + Saskatchewan Revenue |
| Manitoba | GST + RST | 5% | 7% RST | 12% | CRA + Manitoba Finance |
| Ontario | HST | 5% (in HST) | 8% (in HST) | 13% | CRA only |
| Quebec | GST + QST | 5% | 9.975% QST | 14.975% | CRA + Revenu Québec |
| Nova Scotia | HST | 5% (in HST) | 10% (in HST) | 15% | CRA only |
| New Brunswick | HST | 5% (in HST) | 10% (in HST) | 15% | CRA only |
| PEI | HST | 5% (in HST) | 10% (in HST) | 15% | CRA only |
| Newfoundland & Labrador | HST | 5% (in HST) | 10% (in HST) | 15% | CRA only |
| Yukon / NWT / Nunavut | GST only | 5% | 0% | 5% | CRA only |
⚠️ 2026 rates. HST province rates have been stable for several years. Verify BC, Saskatchewan, and Manitoba PST rates periodically as they can be adjusted by provincial budgets. Source: CRA General GST/HST Information and provincial government sources.
The Key Differences Between GST and PST
| Feature | GST / HST | PST / QST / RST |
|---|---|---|
| Who administers it | CRA (federal) | Provincial government (or Revenu Québec for QST) |
| Registration threshold | $30,000 taxable revenue | BC: no threshold; SK/MB: varies; QC: $30,000 |
| Input tax credits (businesses) | Yes — can claim ITCs on business purchases | Generally no — PST is a final consumer tax (QST has its own ITC equivalent) |
| Taxable base | Net price (same for federal component) | Often same net price; some provinces apply to GST-inclusive price |
| Filing and remittance | Through CRA My Account / Netfile | Through provincial government portals |
| Cascading | No — value-added, ITCs prevent cascading | Yes — PST generally cascades (no credit for PST paid on inputs) |
Frequently Asked Questions
What is the difference between GST, HST, and PST in Canada?
GST is the 5% federal Goods and Services Tax that applies everywhere. HST is the Harmonized Sales Tax: a single combined rate used in provinces that agreed to merge their provincial sales tax with the federal GST. PST, QST, and RST are provincial-only sales taxes charged separately from GST in non-HST provinces. In an HST province (like Ontario), you see one 13% line. In a non-HST province (like BC), you see two separate lines: 5% GST and 7% PST.
Which Canadian provinces have HST in 2026?
Five provinces use HST: Ontario (13%), Nova Scotia (15%), New Brunswick (15%), Prince Edward Island (15%), and Newfoundland and Labrador (15%). These provinces combined their provincial sales tax with the federal GST into one harmonized rate, administered entirely by the CRA. All other provinces either have separate PST/QST (BC, Saskatchewan, Manitoba, Quebec) or no provincial sales tax at all (Alberta, Yukon, NWT, Nunavut).
Does Alberta have PST in 2026?
No. Alberta is the only province that charges no provincial sales tax. The only sales tax in Alberta is the federal 5% GST. This makes Alberta the most consumer-tax-friendly province for large purchases: a $50,000 vehicle in Alberta costs $2,500 in GST vs $6,500 in Ontario (13% HST) or $7,500 in Nova Scotia (15% HST). There have been ongoing political discussions about introducing a provincial sales tax in Alberta, but as of 2026, no PST exists.
Can businesses claim back the PST they pay on purchases in BC?
Generally no. BC's PST is a retail-stage tax: it cascades through the supply chain without a credit mechanism equivalent to the federal GST/ITC system. However, BC does provide specific exemptions for manufacturing equipment, goods purchased for resale, farm equipment, and some other business inputs. Businesses must apply for these exemptions using specific forms at the point of purchase: they're not automatically granted. This structural difference from HST is a significant compliance and cash-flow disadvantage for BC manufacturers and industrial businesses.
Why does Quebec have both GST and QST: can't businesses just file one return?
Quebec opted not to harmonize with the federal GST system (unlike Ontario and Atlantic provinces). Instead, Quebec administers its own QST (9.975%) through Revenu Québec, a provincial agency. While QST closely mirrors federal GST rules (similar taxable base, input credit system), businesses in Quebec must file two separate returns: one for GST with the CRA, and one for QST with Revenu Québec. However, Revenu Québec does act as a combined administrator for some businesses: check whether you qualify for the "single return" filing arrangement.
Final Thoughts
Canada's three-tier sales tax system — GST, HST, and PST: reflects the country's federal nature, where provinces have constitutional authority over direct taxation. For consumers, the key is knowing which rate applies where you shop. For businesses, the stakes are higher: registration requirements, ITC eligibility, place-of-supply rules, and separate provincial filing obligations all need to be managed correctly. Use the Canada GST/HST Calculator for any province's calculation, and explore our dedicated guides for Ontario HST, BC sales tax, and HST for small business for deeper dives into each system.
Sources & Citations: Content verified against official guidelines from the IRS (US), HMRC (UK), and ATO (AU). Information is reviewed for accuracy prior to publication.
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