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Province-by-province tax rates
Alberta (AB), Yukon (YT), Northwest Territories (NT), and Nunavut (NU) generally charge only the 5% federal GST with no provincial sales tax. Ontario (ON) uses a 13% Harmonized Sales Tax (HST) that combines the 5% federal portion with an 8% provincial portion in a single rate.
The Atlantic provinces — New Brunswick (NB), Nova Scotia (NS), Newfoundland and Labrador (NL), and Prince Edward Island (PE) — generally use 15% HST. These four provinces harmonised their provincial sales taxes with the federal GST, so businesses collect and remit one combined rate.
British Columbia (BC) charges 5% GST plus 7% Provincial Sales Tax (PST) on most taxable goods and some services, for a combined burden of roughly 12%. Saskatchewan (SK) uses 5% GST plus 6% PST, and Manitoba (MB) uses 5% GST plus 7% Retail Sales Tax (RST). In these provinces, GST and PST/RST are administered separately.
Quebec (QC) charges 5% GST plus 9.975% Quebec Sales Tax (QST), producing a combined rate of approximately 14.975%. QST is administered by Revenu Québec, not the CRA, so businesses selling into Quebec may need a separate QST registration.
Worked examples by province
A CAD 100 taxable sale in Ontario at 13% HST totals CAD 113. The same sale in Alberta at 5% GST totals CAD 105. In Nova Scotia at 15% HST, the total is CAD 115. These examples assume the item is fully taxable with no exemptions.
In British Columbia, the CAD 100 sale incurs CAD 5 GST and CAD 7 PST, totaling CAD 112. In Quebec, the GST is CAD 5 and QST is approximately CAD 9.98 (since QST is generally calculated on the price before GST), making the total roughly CAD 114.98.
To reverse Ontario HST from a CAD 113 receipt, divide by 1.13 to get CAD 100 net, with CAD 13 HST. For Quebec, the reverse calculation requires separating QST and GST, which is often easier with a calculator or accounting software.
For high-value purchases — say a CAD 5,000 piece of equipment — the tax difference between Alberta (CAD 250 GST) and Nova Scotia (CAD 750 HST) is CAD 500. Businesses making inter-provincial purchases should factor provincial tax into procurement decisions where legally permitted.
Place-of-supply rules for digital services
For tangible goods shipped within Canada, the province of delivery generally determines the applicable tax rate. For digital products and services — such as streaming subscriptions, software licenses, online courses, and consulting — place-of-supply rules may look at the customer's usual province of residence instead.
Non-resident digital businesses selling to Canadian consumers may be required to register for GST/HST under the simplified registration framework introduced in July 2021. This framework generally applies to businesses without a physical presence in Canada that exceed CAD 30,000 in annual Canadian sales.
Place-of-supply for B2B digital services often follows different rules than B2C. When the recipient is a GST/HST registrant, the supply may be zero-rated and the recipient self-assesses tax under the reverse-charge mechanism. Sellers should confirm the customer's registration status before applying zero-rating.
Seller notes
Place-of-supply rules decide which province's rate applies to a given transaction. Digital products, professional services, and shipped goods can each follow different sourcing rules, so a single business may need to track multiple rule sets.
Quebec has extra QST administration considerations. Businesses selling nationally should keep province-level reporting separate and verify CRA and Revenu Québec requirements. Filing GST returns with CRA and QST returns with Revenu Québec on different schedules is a common source of compliance errors.
Input tax credits (ITCs) allow registered businesses to recover GST/HST paid on business purchases. However, PST paid in BC, SK, or MB is generally not recoverable as an ITC — it becomes a cost of doing business. This distinction matters when comparing net tax burdens across provinces.
Frequently Asked Questions
What is GST in Canada?
GST is the 5% federal goods and services tax that applies across all provinces and territories.
What is HST?
HST combines federal GST and a provincial component into one harmonized rate in participating provinces — currently ON (13%), NB, NS, NL, and PE (15%).
Do I need a separate QST registration for Quebec?
Generally yes, if you make taxable supplies in Quebec and exceed the small-supplier threshold. QST is administered by Revenu Québec, not the CRA, so a separate registration is often required.
Can I recover PST paid on business purchases in BC or Saskatchewan?
Generally no. Unlike GST/HST input tax credits, PST and RST paid in non-harmonised provinces are usually a non-recoverable business cost. Check with your accountant for any limited exceptions.