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Taxes 2 min read

GST in Alberta (5%) – Do You Need to Charge Tax?

Learn how GST works in Alberta, including the 5% rate, when to charge it, and how to calculate it correctly on invoices.

Published May 2, 2026 By Lunio Team
GST in Alberta (5%) – Do You Need to Charge Tax?

Last updated: May 2026

GST in Alberta (Quick Answer)

In Alberta, businesses charge 5% GST on most goods and services.

👉 Alberta does not have provincial sales tax (PST).

This makes Alberta one of the simplest provinces for tax calculations in Canada.

What Is GST in Alberta?

GST (Goods and Services Tax) is a federal tax applied across Canada.

In Alberta:

  • GST is 5%
  • There is no provincial sales tax

👉 This means you only need to calculate one tax.

Alberta Tax Rate

Tax Type Rate
GST (Federal) 5%
PST 0%
Total 5%

When Do You Charge GST in Alberta?

You charge GST if:

  • You are registered for GST/HST
  • Your customer is located in Alberta
  • Your goods or services are taxable

👉 Always charge tax based on your customer’s location, not your own.

Example: GST Calculation in Alberta

Description Amount
Service $100.00
Subtotal $100.00
GST (5%) $5.00
Total $105.00

👉 Formula:
GST = Subtotal × 0.05

Do You Always Have to Charge GST?

No — only if you are registered.

You generally need to register once your business earns:

👉 $30,000 in revenue over 12 months

Before that, you are considered a small supplier.

Common GST Mistakes in Alberta

  • Assuming Alberta has PST
  • Forgetting to charge GST after registering
  • Not clearly showing GST on invoices
  • Charging tax based on your province instead of the customer’s

How to Show GST on an Invoice

Your invoice should include:

  • Subtotal (before tax)
  • GST (5%)
  • Total (after tax)

👉 Keeping this clear helps with compliance and client trust.

Tools to Calculate GST

Use Lunio’s tools to simplify tax calculations:

Related Guides

FAQ

Does Alberta have PST?

No — Alberta does not have provincial sales tax.

What tax do you charge in Alberta?

You typically charge 5% GST if you are registered.

Is Alberta the lowest tax province?

Yes — Alberta has one of the lowest sales tax rates in Canada at 5%.

Final Thoughts

Alberta is one of the easiest provinces for tax calculations because only GST applies.

Once you understand the 5% rate, invoicing becomes simple and straightforward.

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