The four types of sales tax in Canada
- GST (goods and services tax): a 5% federal tax that applies across Canada, except where it's built into the HST.
- HST (harmonized sales tax): combines the GST and provincial tax into a single rate. It applies in Ontario (13%), Nova Scotia (14%), New Brunswick, Newfoundland and Labrador and Prince Edward Island (15%).
- PST (provincial sales tax): collected separately by British Columbia (7%), Saskatchewan (6%) and Manitoba (7%, called RST).
- QST (Quebec sales tax): 9.975%, administered by Revenu Québec.
Which province has the lowest sales tax?
Alberta and the three territories (Yukon, Northwest Territories, Nunavut) only charge the 5% GST. At the other end, New Brunswick, Newfoundland and Labrador and Prince Edward Island have the highest rate at 15%. Quebec follows closely at 14.975%.
Which tax do I charge when selling to another province?
As a general rule, the tax depends on the province where the goods are delivered or the service is provided, not where the seller is located. An Ontario business shipping a product to British Columbia charges 5% GST (and B.C. PST if it's registered there), not Ontario's 13% HST.