Understanding Canadian Sales Taxes: GST vs. HST vs. PST
A comprehensive breakdown of sales taxes in Canada. Find provincial sales tax rates, rules, exemptions, and calculation methods for business filing.
Written by the CalcUni Editorial Team | Updated: May 2026
In Canada, businesses and consumers navigate a unique sales tax landscape. Depending on which province or territory you operate in, you may encounter Goods and Services Tax (GST), Harmonized Sales Tax (HST), or Provincial Sales Tax (PST).
1. The Three Sales Taxes in Canada
- GST (Goods and Services Tax): A federal tax of 5% applied to most goods and services supplied in Canada.
- PST (Provincial Sales Tax): A provincial sales tax levied on retail sales, services, and admissions. It is also referred to as RST (Retail Sales Tax) in Manitoba and QST (Quebec Sales Tax) in Quebec.
- HST (Harmonized Sales Tax): A unified tax that combines the federal GST and provincial sales taxes into a single rate. HST is collected by the federal government and shared with participating provinces.
2. Provincial Tax Rates Comparison
| Province / Territory | GST Rate | PST / QST / RST | Total Tax Rate |
|---|---|---|---|
| Ontario | - (Harmonized) | - (Harmonized) | 13% HST |
| British Columbia | 5% | 7% PST | 12% Total |
| Alberta | 5% | 0% PST | 5% Total |
| Quebec | 5% | 9.975% QST | 14.975% Total |
| Nova Scotia, New Brunswick, PEI, Newfoundland | - (Harmonized) | - (Harmonized) | 15% HST |
3. How to Calculate GST/HST
Calculating the sales tax on a purchase is simple. To find the total cost including tax, multiply the base price by the total tax decimal:
Total Price = Base Price + Total Tax
Reverse Tax Calculation (Finding Base Price)
If you have a total price and want to find how much of that is the base price and how much is tax, divide the total price by 1 + the tax rate in decimal format:
Tax Amount = Total Price - Base Price
Summary
Knowing your tax rates is crucial for bookkeeping, small business accounting, and consumer purchases. Use our dedicated GST/HST Calculator Canada or provincial-specific PST Calculator to compute retail transactions instantly.