Canadian Taxes
Category: Reference
Determine which Canadian sales taxes apply to your business and how to charge them to your customers.
Key tax terms
Before determining your tax obligations, understand these tax types:
- GST (Goods and Services Tax): A 5% federal tax that applies across all of Canada.
- PST (Provincial Sales Tax): A provincial tax charged in addition to GST. The rate varies by province.
- HST (Harmonized Sales Tax): A single combined tax that merges GST and PST into one rate. Only certain provinces use HST.
- QST (Quebec Sales Tax): Quebec's provincial sales tax, functionally similar to PST.
- RST (Retail Sales Tax): Manitoba's name for its provincial sales tax.
How tax determination works
If you sell goods or provide services in Canada, you are required to collect sales tax. The taxes you collect depend on your province or territory of operation:
- HST provinces collect a single Harmonized Sales Tax that combines federal and provincial taxes. See the HST provinces table below.
- GST + PST provinces collect 5% GST plus a separate provincial sales tax. See the GST + PST provinces table below.
- GST-only provinces and territories (Alberta, Northwest Territories, Nunavut, and Yukon) collect only the 5% federal GST.
HST provinces
These provinces use a single Harmonized Sales Tax:
| Province | HST tax rate |
|---|---|
| New Brunswick | 15% |
| Newfoundland and Labrador | 15% |
| Nova Scotia | 15% |
| Ontario | 13% |
| Prince Edward Island | 5% |
GST + PST provinces
These provinces require you to collect 5% GST plus a separate provincial sales tax:
| Province | Provincial tax rate |
|---|---|
| British Columbia | 7% provincial sales tax (PST) on retail price only |
| Manitoba | 7% retail sales tax (RST) on retail price only |
| Quebec | 9.975% Quebec sales tax (QST) on retail price only |
| Saskatchewan | 6% provincial sales tax (PST) on retail price only |
GST-only provinces and territories
If you operate in any of the following, collect only the 5% GST:
- Alberta
- Northwest Territories
- Nunavut
- Yukon
Summary of Tax rates per Province
| Province / Territory | GST | PST / RST / QST | HST |
|---|---|---|---|
| Alberta | 5% | — | — |
| British Columbia | 5% | 7% PST | — |
| Manitoba | 5% | 7% RST | — |
| New Brunswick | — | — | 15% |
| Newfoundland and Labrador | — | — | 15% |
| Northwest Territories | 5% | — | — |
| Nova Scotia | — | — | 15% |
| Nunavut | 5% | — | — |
| Ontario | — | — | 13% |
| Prince Edward Island | — | — | 5% |
| Quebec | 5% | 9.975% QST | — |
| Saskatchewan | 5% | 6% PST | — |
| Yukon | 5% | — | — |
Troubleshooting
I'm not sure which tax to charge for online sales across provinces
When you sell to customers in a different province, you typically charge the taxes based on the destination province (where the customer receives the goods or services), not where your business is located. Verify the shipping address and apply that province's tax rates.
My customer is tax-exempt — what do I do?
Some customers (such as Indigenous peoples, diplomats, or certain organizations) may be exempt from specific taxes. Request a valid exemption certificate or number before removing the tax from the transaction, and keep the documentation on file.
Do I need to register for a GST/HST number?
If your total taxable revenue exceeds $30,000 over four consecutive calendar quarters, you must register for a GST/HST account with the Canada Revenue Agency (CRA). Even below this threshold, voluntary registration lets you claim input tax credits.
Next steps
Updated 10 days ago