Tax and accounting terms

GST, HST, PST and QST Explained: How Sales Tax Works in Canada

5%GST everywhere in Canada. Five provinces fold their own tax into it as HST, and four charge a separate provincial tax on top.

Sources checked October 20264 min read

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One

One federal tax, three provincial approaches

The goods and services tax is charged by registered businesses on their taxable sales. Each registrant claims input tax credits for the GST it pays on purchases used in its commercial activities and sends the CRA the difference, so the tax is not a cost to a registrant for those activities.

Provinces have taken three routes. Five harmonized their sales tax with GST into a single harmonized sales tax, filed on one return with the CRA. Four kept a separate provincial tax with its own registration, rules and returns. Alberta and the three territories charge no provincial sales tax at all.

Sales tax by province and territory. Source: Canada Revenue Agency and provincial governments.
Province or territory	Tax charged	Rate	Provincial part filed with
Alberta	GST only	5%	No provincial sales tax
British Columbia	GST and PST	5% plus 7%	Province of British Columbia
Manitoba	GST and RST	5% plus 7%	Province of Manitoba
New Brunswick	HST	15%	CRA, on the same return as GST
Newfoundland and Labrador	HST	15%	CRA, on the same return as GST
Northwest Territories	GST only	5%	No provincial sales tax
Nova Scotia	HST	14%	CRA, on the same return as GST
Nunavut	GST only	5%	No provincial sales tax
Ontario	HST	13%	CRA, on the same return as GST
Prince Edward Island	HST	15%	CRA, on the same return as GST
Quebec	GST and QST	5% plus 9.975%	Revenu Quebec, which also runs GST in Quebec
Saskatchewan	GST and PST	5% plus 6%	Province of Saskatchewan
Yukon	GST only	5%	No provincial sales tax

Key points

GST is the 5% federal tax charged on most supplies across Canada
HST combines GST with the provincial tax in New Brunswick, Newfoundland and Labrador, Nova Scotia, Ontario and Prince Edward Island
British Columbia, Manitoba, Quebec and Saskatchewan charge a separate provincial tax with its own registration
The rate depends on where the supply is made, not where the seller is

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Two

HST in the harmonized provinces

In New Brunswick, Newfoundland and Labrador, Nova Scotia, Ontario and Prince Edward Island, the provincial portion is part of the HST. A GST registrant charges HST on supplies made in those provinces wherever the business itself is located, reports it on the same GST/HST return, and claims input tax credits for HST paid on business purchases exactly as it does for GST. Each province sets its own portion: Nova Scotia lowered its share to 9% in April 2025, bringing its HST to 14%.

The rate follows the place of supply, not the seller's address. An Alberta business that delivers goods to a customer in Ontario charges 13% HST, while the same sale picked up at its Alberta premises carries 5% GST. The rules for services and intangible property look at addresses and are covered in the place of supply guide.

Three

PST, RST and QST: the separate provincial taxes

British Columbia's PST is a retail sales tax that applies when taxable goods, software or services are acquired in the province or brought into it for use there, generally at 7%. Saskatchewan's PST of 6% applies to taxable goods and services consumed or used in the province, and a buyer whose supplier did not collect it, such as an unlicensed seller outside the province, has to self assess and pay it directly. Manitoba's retail sales tax of 7% applies to the retail sale or rental of most goods and certain services, calculated on the price before GST.

These retail taxes are aimed at the end user, so a business generally pays PST on the items it uses itself and has no input tax credit to recover it, and a registered business also reports PST it owes on items it uses. Each needs its own registration with the province, and a business based elsewhere can still have to register when it sells into the province.

Quebec's QST of 9.975% works more like GST. It is calculated on the selling price excluding GST, registrants claim input tax refunds for the QST they pay on business purchases, and Revenu Quebec administers both QST and GST for most Quebec businesses.

Four

What a sale looks like on the invoice

GST is always calculated on the price before PST, Manitoba's RST on the price before GST, and QST on the price excluding GST, so no tax is charged on another tax. Here is the same $1,000 sale made in four provinces:

Tax on a $1,000 taxable sale, by where the supply is made.
Place of supply	GST or HST	Provincial tax	Invoice total
Alberta	$50 GST	None	$1,050
Ontario	$130 HST	Included in HST	$1,130
British Columbia	$50 GST	$70 PST	$1,120
Quebec	$50 GST	$99.75 QST	$1,149.75

Five

Quick answers

What is the difference between GST and HST?

GST is the 5% federal tax. HST is GST combined with a provincial portion in the harmonized provinces, charged and filed as one tax with the CRA.

Do I charge my province's rate or my customer's?

Generally the rate of the province where the supply is made. For goods that is usually where they are delivered, so a Calgary business shipping to Halifax charges 14% Nova Scotia HST.

Can a business recover the PST it pays?

Generally not the way it recovers GST. PST in British Columbia and Saskatchewan and RST in Manitoba have no input tax credit system, while QST registrants can claim input tax refunds.

Six

Official sources

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Important. This article provides general educational information, not legal or tax advice for a specific business. Rules, administrative policies, rates and deadlines can change. Confirm your facts and current obligations with the responsible government agency and a qualified adviser.