Understanding the different GST and PST rates in Canada is essential for businesses that sell products or services to Canadian customers. Charging the wrong rate can lead to inaccurate invoices, bookkeeping problems, unexpected tax liabilities and possible interest or penalties.
Canada does not use one uniform sales tax system. Depending on where a sale is considered to take place, a business may need to charge:
- GST only;
- HST;
- GST and PST;
- GST and RST; or
- GST and QST.
The correct rate may also depend on what is being sold, where the customer receives it and whether the product or service is taxable, zero-rated or exempt.
This guide explains the current general sales tax rates across Canada and highlights the practical issues business owners should consider when registering, invoicing, collecting and remitting sales taxes.
Rates in this article are current as of July 29, 2026. Special rates, exemptions and industry-specific rules may apply. Always confirm how the rules apply to your particular transaction.
What Are GST, HST, PST, RST and QST?
Before reviewing the rates, it helps to understand the terminology.
Goods and Services Tax
The Goods and Services Tax, or GST, is a federal tax administered by the Canada Revenue Agency.
The federal GST rate is 5%.
GST applies by itself in Alberta and the three territories. It is also charged alongside a separate provincial sales tax in British Columbia, Manitoba, Quebec and Saskatchewan.
Harmonized Sales Tax
The Harmonized Sales Tax, or HST, combines the 5% federal GST with a provincial component.
Businesses generally show the HST as one tax amount on an invoice rather than separating the federal and provincial portions.
HST applies in:
- New Brunswick;
- Newfoundland and Labrador;
- Nova Scotia;
- Ontario; and
- Prince Edward Island.
The applicable HST rate ranges from 13% to 15%, depending on the province. Nova Scotia’s general HST rate decreased from 15% to 14% on April 1, 2025.
Provincial Sales Tax
A Provincial Sales Tax, or PST, is administered separately by a provincial government.
British Columbia and Saskatchewan use the term PST. Businesses operating or selling into these provinces may need to register separately with the applicable province, even if they already have a federal GST/HST account.
Manitoba Retail Sales Tax
Manitoba calls its provincial tax Retail Sales Tax, or RST.
The general Manitoba RST rate is 7%. It is generally calculated on the selling price before GST is added.
Quebec Sales Tax
Quebec calls its provincial tax the Quebec Sales Tax, or QST.
The general QST rate is 9.975%. GST and QST are each calculated on the selling price, with a combined general rate of 14.975%.
Current GST and PST Rates in Canada by Province and Territory
The following table summarizes the general GST and PST rates in Canada, including HST, RST and QST.
| Province or territory | Sales tax system | Federal rate | Provincial rate | General combined rate |
|---|---|---|---|---|
| Alberta | GST | 5% | None | 5% |
| British Columbia | GST + PST | 5% | 7% PST | 12% |
| Manitoba | GST + RST | 5% | 7% RST | 12% |
| New Brunswick | HST | Included | Included | 15% |
| Newfoundland and Labrador | HST | Included | Included | 15% |
| Northwest Territories | GST | 5% | None | 5% |
| Nova Scotia | HST | Included | Included | 14% |
| Nunavut | GST | 5% | None | 5% |
| Ontario | HST | Included | Included | 13% |
| Prince Edward Island | HST | Included | Included | 15% |
| Quebec | GST + QST | 5% | 9.975% QST | 14.975% |
| Saskatchewan | GST + PST | 5% | 6% PST | 11% |
| Yukon | GST | 5% | None | 5% |
These are general rates. Certain products, services, industries and purchasers may be subject to special rules, reduced rates, exemptions or point-of-sale rebates. The federal GST/HST rates are confirmed by the CRA, while the separate provincial rates are maintained by the applicable provincial tax authorities.
Provinces and Territories That Charge Only GST
Four Canadian jurisdictions do not impose a general provincial sales tax:
- Alberta — 5% GST
- Northwest Territories — 5% GST
- Nunavut — 5% GST
- Yukon — 5% GST
For most taxable sales considered to be made in these jurisdictions, a registered business charges the 5% federal GST.
This does not mean that every sale is automatically taxable at 5%. Some supplies are zero-rated or exempt, and special rules can apply to real property, transportation, digital services and other transactions.
Provinces That Charge HST
Five provinces use the harmonized sales tax system:
- New Brunswick — 15% HST
- Newfoundland and Labrador — 15% HST
- Nova Scotia — 14% HST
- Ontario — 13% HST
- Prince Edward Island — 15% HST
The HST combines the federal GST and the provincial portion into one rate.
Businesses should generally display the total HST charged on their invoices. The CRA advises businesses not to show the federal and provincial components of the HST as separate taxes.
Provinces With Separate Federal and Provincial Sales Taxes
Four provinces maintain a provincial sales tax that is separate from the federal GST.
British Columbia
British Columbia’s general sales tax structure is:
- 5% GST
- 7% PST
- 12% combined general rate
The general B.C. PST rate is 7%, although special rates and exemptions apply to certain products and transactions. Businesses required to register must collect and report PST separately from GST.
Manitoba
Manitoba’s general sales tax structure is:
- 5% GST
- 7% RST
- 12% combined general rate
Manitoba’s RST is generally calculated on the selling price before GST is applied. Not every service is subject to RST, so businesses should confirm whether the particular goods or services they sell are taxable.
Quebec
Quebec’s general sales tax structure is:
- 5% GST
- 9.975% QST
- 14.975% combined general rate
GST and QST are generally shown separately. Businesses operating in Quebec or making certain taxable sales to Quebec customers may have registration, collection and filing obligations administered through Revenu Québec.
Saskatchewan
Saskatchewan’s general sales tax structure is:
- 5% GST
- 6% PST
- 11% combined general rate
Saskatchewan PST applies to taxable goods and services purchased, rented or imported for consumption or use in the province.
Which Sales Tax Rate Should Your Business Charge?
A common mistake is assuming that a business should always charge the rate that applies in the province where its office is located.
For GST and HST purposes, the correct rate is generally determined using the CRA’s place-of-supply rules. These rules help determine the province or territory in which a transaction is considered to occur.
Factors can include:
- where goods are delivered;
- the customer’s address;
- where a service is performed;
- the location of real property;
- the type of service being provided; and
- specific rules for intangible property, transportation or telecommunications.
For example, when a business in British Columbia sells a taxable product and delivers it to a customer in Ontario, the transaction may be considered an Ontario supply. In that situation, the seller would generally charge 13% Ontario HST rather than 5% GST and 7% B.C. PST.
The rules can become more complicated when a business:
- serves customers across several provinces;
- delivers digital products;
- provides remote professional services;
- sells through online marketplaces;
- ships goods from third-party warehouses;
- works on property located in another province; or
- has customers with multiple business locations.
Provincial PST, RST and QST obligations are governed by separate provincial legislation. Do not assume that applying the CRA’s GST/HST rules automatically resolves the provincial tax treatment.
When Must a Business Register for GST/HST?
Most businesses must register for GST/HST when their total revenues from taxable supplies, including zero-rated supplies and the applicable supplies of associated persons, exceed $30,000:
- in a single calendar quarter; or
- over the previous four consecutive calendar quarters.
Public service bodies generally use a separate $50,000 threshold.
When a business exceeds $30,000 in one calendar quarter, it may cease to be a small supplier immediately. The sale that causes the business to exceed the threshold may itself be subject to GST/HST, and the business generally has 29 days from its effective registration date to register.
Some businesses must register regardless of the normal small-supplier threshold. Special rules can apply to taxi and commercial ride-sharing operators, non-resident businesses, digital-economy businesses and certain event or admission suppliers.
Can a Small Business Register Voluntarily?
A qualifying small supplier may choose to register voluntarily before reaching the $30,000 threshold.
Potential advantages include:
- claiming input tax credits on eligible business expenses;
- recovering GST/HST on certain start-up costs;
- establishing tax procedures before sales increase; and
- appearing more established when working with larger commercial customers.
However, voluntary registration also creates ongoing responsibilities. Once registered, the business must generally charge the applicable GST/HST, file returns and remit its net tax. A small supplier that remains unregistered generally cannot charge GST/HST or claim input tax credits.
GST/HST Registration Does Not Automatically Cover PST
Federal GST/HST registration and provincial sales tax registration are separate issues.
Registering for a CRA GST/HST account does not automatically register a business to collect:
- British Columbia PST;
- Manitoba RST;
- Quebec QST; or
- Saskatchewan PST.
Each province has its own registration requirements, taxable-product definitions, exemptions, filing systems and rules for businesses located outside the province.
An Ontario business that sells goods to customers in British Columbia, for example, should not assume it has no B.C. obligations simply because it has no physical office there. Depending on its activities, products, sales channels and delivery arrangements, it may need to assess B.C. PST registration separately.
Businesses selling across Canada should review their federal and provincial obligations together rather than treating GST/HST registration as the only requirement.
Taxable, Zero-Rated and Exempt Supplies
The tax treatment of a sale depends on more than the customer’s province. A business must also determine the type of supply.
Taxable Supplies
Most property and services supplied or imported into Canada are taxable.
A taxable supply may be subject to:
- 5% GST;
- 13%, 14% or 15% HST; or
- 0% GST/HST if it is zero-rated.
GST/HST registrants may generally claim eligible input tax credits on purchases used in their commercial activities.
Zero-Rated Supplies
Zero-rated supplies are taxable at 0%.
Examples can include certain:
- basic groceries;
- prescription drugs;
- medical devices;
- agricultural products;
- exports; and
- transportation services.
A business does not charge GST/HST on a zero-rated sale, but because the sale remains taxable, a registrant may generally claim eligible input tax credits related to making that supply.
Exempt Supplies
No GST/HST is charged on exempt supplies.
Examples can include certain:
- health-care services;
- educational services;
- child-care services;
- residential rents;
- financial services; and
- sales of previously occupied residential housing.
A business generally cannot claim input tax credits for GST/HST paid on expenses used to make exempt supplies.
The distinction between zero-rated and exempt is important. Both may result in no tax being charged to the customer, but the input tax credit treatment can be very different.
What Are Input Tax Credits?
A GST/HST registrant can generally recover eligible GST/HST paid or payable on purchases and expenses used in its commercial activities by claiming input tax credits, commonly called ITCs.
Potentially eligible expenses can include:
- accounting and legal fees;
- advertising;
- commercial rent;
- office supplies;
- telephone and utilities;
- equipment;
- repairs and maintenance;
- delivery and freight;
- travel; and
- eligible motor vehicle expenses.
Restrictions and allocation rules can apply when an expense is partly personal, partly related to exempt activities or subject to another limitation.
A business must retain appropriate supporting documentation before claiming an ITC.
What Information Should Appear on an Invoice?
GST/HST registrants must provide specific information on invoices, receipts, contracts or other business documents used for taxable sales.
The required details can vary depending on the value of the transaction. In general, business documents may need to show:
- the supplier’s legal or operating name;
- the invoice date;
- the total amount charged;
- a description of the goods or services;
- the amount of GST or HST charged;
- the applicable tax rate or a statement that tax is included;
- the supplier’s GST/HST registration number; and
- the purchaser’s name for higher-value transactions.
Customers who are also GST/HST registrants need adequate documentation to support their input tax credit claims.
For provinces with separate sales taxes, invoices should also clearly identify the applicable PST, RST or QST amount.
How Long Should Tax Records Be Kept?
Businesses must maintain records that adequately support:
- taxable and non-taxable sales;
- GST/HST collected;
- input tax credits claimed;
- adjustments;
- refunds;
- rebates; and
- amounts reported on tax returns.
GST/HST records generally need to be kept for six years from the end of the year to which they relate. The CRA may require certain records to be retained longer. Businesses should not destroy required records early without authorization.
Records may include:
- sales invoices;
- purchase receipts;
- contracts;
- bank and credit card statements;
- general ledgers;
- tax returns;
- working papers;
- electronic transaction data; and
- documentation supporting exemptions or zero-rated treatment.
Common Canadian Sales Tax Mistakes
Charging the Tax Rate From the Business’s Home Province
The customer’s location, delivery destination and place-of-supply rules may determine the rate—not simply the seller’s office address.
Using Outdated Tax Tables
Tax rates can change. Nova Scotia’s HST rate, for example, changed from 15% to 14% effective April 1, 2025.
Tax tables should be reviewed regularly in:
- accounting software;
- e-commerce platforms;
- point-of-sale systems;
- invoice templates;
- subscription systems; and
- marketplace integrations.
Assuming Every Sale Is Taxable
Some supplies are zero-rated or exempt. Others may qualify for provincial exemptions or point-of-sale rebates.
Assuming All Professional Services Are Exempt
Most professional and consulting services are taxable for GST/HST purposes unless a specific exemption applies.
Health care, education and financial services can involve particularly detailed exemption rules. The profession of the supplier alone does not always determine the answer.
Treating Collected Sales Tax as Revenue
GST, HST, PST, RST and QST collected from customers are generally amounts held for remittance to the applicable tax authority.
They should be recorded in separate liability accounts rather than included as ordinary business income.
Missing Provincial Registration Requirements
A business may be registered for GST/HST but still fail to register for a separate provincial tax where required.
Claiming Input Tax Credits Without Proper Documents
Receipts and invoices must contain the information needed to support the claim. Credit card statements alone may not provide sufficient transaction details.
Failing to Reconcile Tax Accounts
Sales tax payable, input tax credits, filed returns and payments should be reconciled regularly.
Unreconciled accounts can lead to:
- missed filings;
- duplicated claims;
- unpaid balances;
- incorrect tax rates;
- inaccurate financial statements; and
- problems during a CRA or provincial tax review.
Sales Tax Compliance Checklist for Canadian Businesses
Use the following checklist to review your current process:
- Confirm where your customers receive your products or services.
- Apply the appropriate place-of-supply rules.
- Classify each product or service as taxable, zero-rated or exempt.
- Confirm whether you have exceeded the GST/HST registration threshold.
- Review whether voluntary GST/HST registration would be beneficial.
- Assess PST, RST and QST registration separately.
- Update tax rates in all accounting and sales platforms.
- Display taxes correctly on invoices and receipts.
- Verify that your GST/HST registration number appears where required.
- Record collected sales taxes in liability accounts.
- Retain documents supporting input tax credits.
- Reconcile sales tax accounts to filed returns.
- File nil returns when required, even if no tax is owing.
- Review tax settings whenever you enter a new province or sales channel.
- Seek advice before correcting historical sales tax errors.
Frequently Asked Questions About GST and PST Rates in Canada
What is the federal GST rate in Canada?
The federal GST rate is 5%.
It applies by itself in Alberta, the Northwest Territories, Nunavut and Yukon. It also forms the federal portion of HST and is charged alongside separate provincial taxes in British Columbia, Manitoba, Quebec and Saskatchewan.
Which Canadian province has the lowest general sales tax rate?
Alberta has no general provincial sales tax. The general sales tax applied to most taxable supplies in Alberta is therefore the 5% federal GST.
The Northwest Territories, Nunavut and Yukon also charge only the 5% GST.
Which province has the highest general combined sales tax rate?
New Brunswick, Newfoundland and Labrador, and Prince Edward Island each have a general HST rate of 15%.
Quebec’s combined GST and QST rate is 14.975%.
Does Ontario have PST?
No. Ontario uses a 13% harmonized sales tax.
The HST combines the federal and provincial components into one tax.
Is PST charged on top of GST?
In British Columbia, Manitoba, Quebec and Saskatchewan, the federal and provincial sales taxes are separate.
They are generally each calculated on the selling price rather than one tax being calculated on top of the other. However, provincial calculation rules and special circumstances should always be confirmed.
Do I charge my province’s tax rate when selling to another province?
Not necessarily.
For GST/HST purposes, the rate is generally determined using the CRA’s place-of-supply rules. The delivery destination, customer address, type of service and location of relevant property may affect the answer.
Separate PST, RST or QST rules may also apply.
Do I need to register for GST/HST if my revenue is under $30,000?
A business that qualifies as a small supplier is generally not required to register before exceeding the threshold, although exceptions apply.
A qualifying business may choose to register voluntarily. Registration allows eligible input tax credits to be claimed but also creates collection, filing and remittance obligations.
What happens if I charge the wrong sales tax rate?
The business may still be responsible for remitting the amount that should have been collected, even if it did not collect enough from the customer.
Charging too much can also create refund, adjustment and customer-service obligations.
Tax-rate errors should be reviewed and corrected promptly.
Get Help With GST, HST and Provincial Sales Tax
Canadian sales tax compliance involves more than selecting a percentage from a table.
Your obligations may depend on:
- your total taxable revenue;
- the products or services you sell;
- where your customers are located;
- where goods are delivered;
- whether your supplies are taxable, zero-rated or exempt;
- the provinces in which you conduct business; and
- whether your records support the tax treatment used.
Ebrahimjee & Essaji Professional Accountants can help you review your GST/HST registration, bookkeeping procedures, invoice setup, input tax credits, filing obligations and outstanding sales tax issues.
Whether you are registering a new business, expanding into another province or correcting past reporting, obtaining advice early can help you avoid more expensive problems later.
Need help reviewing your Canadian sales tax obligations? Contact E&E Professional Accountants to discuss your business and the next steps.
Important Notice
This article provides general information and does not constitute accounting, tax or legal advice. Sales tax rules can vary based on the facts of a transaction, the type of supply and the applicable jurisdiction. Rates and requirements may change after the publication date. Consult a qualified professional or the applicable tax authority regarding your specific circumstances.