Last updated: May 2026
Canadian Sales Tax by Province (Quick Overview)
Sales tax in Canada varies by province or territory. Businesses may need to charge:
- GST (Goods and Services Tax) – 5% federal tax
- HST (Harmonized Sales Tax) – combined federal + provincial tax
- PST/QST – provincial taxes in certain regions
👉 You must charge tax based on your customer’s location, not your own.
Sales Tax Rates by Province
| Province | Tax Type | Rate |
|---|---|---|
| Ontario | HST | 13% |
| Nova Scotia | HST | 14% |
| New Brunswick | HST | 15% |
| Newfoundland and Labrador | HST | 15% |
| Prince Edward Island | HST | 15% |
| British Columbia | GST + PST | 5% + 7% |
| Saskatchewan | GST + PST | 5% + 6% |
| Manitoba | GST + PST | 5% + 7% |
| Quebec | GST + QST | 5% + 9.975% |
| Alberta | GST only | 5% |
| Northwest Territories | GST only | 5% |
| Yukon | GST only | 5% |
| Nunavut | GST only | 5% |
How Sales Tax Works in Canada
Canada uses a mix of federal and provincial tax systems. Some provinces combine taxes into a single rate (HST), while others keep them separate.
- HST provinces charge a single combined rate
- PST/QST provinces require separate tax handling
- Alberta and the territories only charge GST
Which Tax Should You Charge?
👉 This is one of the most common mistakes.
You must charge tax based on your customer’s location, not your business location.
- Client in Ontario → charge 13% HST
- Client in Alberta → charge 5% GST
- Client in Quebec → charge GST + QST
This is known as the place-of-supply rule.
Example Calculation
| Description | Amount |
|---|---|
| Service | $100.00 |
| Subtotal | $100.00 |
| HST (Ontario 13%) | $13.00 |
| Total | $113.00 |
When Do You Need to Charge Sales Tax?
You typically need to register and collect tax once your business earns:
👉 $30,000 in revenue over 12 months
Before that, you’re considered a small supplier.
Tools to Calculate Canadian Sales Tax
Lunio provides tools to simplify tax calculations:
Related Guides
FAQ
What is the sales tax in Canada?
It depends on the province. Rates range from 5% to 15%.
Do all provinces use HST?
No. Some use GST only, while others use PST or QST.
Do I charge tax based on my province?
No, you charge tax based on your customer’s location.
Final Thoughts
Canadian sales tax can seem complicated, but once you understand the system by province, it becomes much easier to manage.