If you've shopped in different Canadian provinces, you've probably noticed the sales tax on your receipt isn't always the same rate — or even the same tax name. Here's why.
GST is federal, PST is provincial
The federal government charges GST (Goods and Services Tax) at 5% everywhere in Canada. On top of that, most provinces also charge their own PST (Provincial Sales Tax) — a separate tax, set independently by each province, added on top of GST.
HST provinces combine the two
Some provinces have agreed to harmonize their provincial sales tax with the federal GST into a single combined rate called HST (Harmonized Sales Tax) — collected together as one number instead of two separate line items.
| Province/Territory | System | Combined Rate |
|---|---|---|
| Ontario | HST | 13% |
| Nova Scotia, New Brunswick, Newfoundland & Labrador, PEI | HST | 15% |
| Alberta, Yukon, Northwest Territories, Nunavut | GST only (no PST) | 5% |
| British Columbia, Manitoba, Saskatchewan, Quebec | GST + separate PST/QST | Varies by province |
Why it matters practically
For consumers, the end result is similar either way — you pay a combined sales tax percentage on most goods and services. For businesses, it matters more: GST-only and HST provinces have simpler single-tax remittance to the CRA, while GST+PST provinces (except Quebec, which has its own agency) require separate registration and remittance processes for each tax.
What's exempt or zero-rated
Both GST and HST exempt or zero-rate similar categories — basic groceries, most health and dental services, and residential rent are generally not subject to GST/HST, regardless of which province you're in.
Calculate GST/HST on a purchase or invoice.
Use the GST/HST Calculator →Provincial sales tax rates and rules can change. Verify current rates for your specific province with the CRA or your provincial revenue authority before filing.