GST, HST and PST explained

Everywhere in Canada, purchases can carry the federal goods and services tax (GST). Five provinces combine it with their own tax into one harmonized sales tax (HST). Four others charge their own provincial sales tax alongside the GST, and Alberta and the three territories charge only the GST.

The three kinds of sales tax

GST. The federal tax, at 5%, applies across the country.

HST. New Brunswick, Newfoundland and Labrador, Nova Scotia, Ontario and Prince Edward Island have merged their sales tax with the GST. You pay one combined rate, and receipts show the total HST rate, not the federal and provincial parts. Nova Scotia lowered its HST to 14% on April 1, 2025.

Provincial sales tax. British Columbia and Saskatchewan charge a PST, Manitoba a retail sales tax (RST), and Quebec the Quebec sales tax (QST). These are separate taxes run by each province (Revenu Québec for the QST), and you pay them in addition to the GST.

Rates by province and territory

Province or territory	Tax	General rate
Alberta, Northwest Territories, Nunavut, Yukon	GST only	5%
British Columbia	GST + PST	5% + 7%
Manitoba	GST + RST	5% + 7%
New Brunswick	HST	15%
Newfoundland and Labrador	HST	15%
Nova Scotia	HST	14%
Ontario	HST	13%
Prince Edward Island	HST	15%
Quebec	GST + QST	5% + 9.975%
Saskatchewan	GST + PST	5% + 6%

These are the general rates. Each province’s own tax has its own exemptions and special rates; check the province’s website for those. The sales tax rates table shows the same figures with their sources.

How the taxes are worked out

Where you buy matters less than where it’s delivered. The rate depends on the place of supply. If a store in Vancouver delivers a mattress to a customer in Toronto, it charges Ontario’s HST of 13%, not B.C. rates. If you pick up an item in person at a store in Manitoba, you pay GST and Manitoba’s RST, even if you live elsewhere.

The GST and provincial taxes don’t stack. Where a PST applies, the GST is calculated on the price without the PST. In Quebec, Revenu Québec has businesses calculate the QST on the selling price as well, not on the price plus GST.

Not everything is taxed the same way

For the GST and HST, every sale falls into one of three groups:

• Taxable. Most goods and services, such as clothing, snack foods like soft drinks and chips, car repairs, hotel stays, legal and accounting services, and new homes.
• Zero-rated. Taxable, but at 0%, so you pay no GST/HST. Examples are basic groceries like milk, bread and vegetables, prescription drugs, certain medical devices such as hearing aids, feminine hygiene products, and most exports.
• Exempt. No GST/HST at all. Examples are long-term residential rent (a month or more), the sale of a used home, most medical and dental services from licensed physicians or dentists, most financial services, child care, and music lessons.

Zero-rated and exempt look the same at the till, but they differ for businesses. A registered business that makes zero-rated sales may be able to recover the GST/HST it paid on its own purchases through input tax credits. A business making exempt sales generally can’t.

Provincial sales taxes have their own exemptions, so don’t assume an item is treated the same way for PST as for GST.

If you run a business

You generally have to register for the GST/HST once you’re no longer a small supplier: that is, once your taxable sales go over $30,000 in a single calendar quarter or over the last four calendar quarters together. Below that, you can register voluntarily. Charities, public institutions and some other organizations have different thresholds. Details are in Do I need to register for GST/HST?

Once registered, you charge the tax, hold it in trust for the government, file returns and send in what you collected, less input tax credits for the GST/HST you paid on business purchases. Keep records that support your returns, generally for six years. Registering for a provincial sales tax is a separate step with the province.

If you’re buying: the CGEB

To help with the cost of everyday essentials, lower- and modest-income individuals and families can get tax-free quarterly payments. This used to be called the GST/HST credit; since July 2026 it has been the Canada Groceries and Essentials Benefit (CGEB), with the same eligibility rules. When you file your tax return each year, you’re automatically considered for it; if you’re a new resident of Canada, you can apply.

In short

• GST everywhere; HST instead of separate taxes in five provinces; a separate PST, RST or QST in four.
• The place of delivery sets the rate.
• Zero-rated means taxed at 0%; exempt means outside the tax, which matters for businesses claiming input tax credits.
• Businesses register once they pass the small supplier threshold.