Canadian Taxes

Canadian Taxes Overview
As a Canadian business owner, it's important to know how and when to charge sales taxes for the goods and services you sell and supply to your customers. Our guide to charging and collecting sales tax will provide you with an understanding of your responsibilities, as well as some valuable resources to help you charge sales taxes.

Charging Taxes
Do you sell goods or provide services in Canada? If so, you are required to collect sales tax from your customers.

Depending on the province or territory in which you operate your business, you need to collect either:

  • A combination of GST and PST
  • GST only
  • HST (combines PST with GST to create one tax).

Below is the list of HST-participating provinces:

ProvinceHST tax rate
New Brunswick15%
Newfoundland and Labrador15%
Nova Scotia15%
Prince Edward Island5%

If you operate in the following provinces, you need to collect 5% GST as well as provincial sales tax, with provincial sales tax rates as follows:

ProvinceProvincial tax rate
British Columbia7% provincial sales tax (PST) on retail price only
Manitoba7% retail sales tax (RST) on retail price only
Quebec9.975% Quebec sales tax (QST) on retail price only
Saskatchewan6% provincial sales tax (PST) on retail price only

If you operate in the province of Alberta or in one of the three territories (Northwest Territories, Nunavut or the Yukon), you do not need to collect sales tax on goods and services beyond the 5% GST.

Summary of Tax rates per Province

Below is a table summarizing the tax rates for all the Canadian provinces and territories.