Canada has three main sales tax structures: GST, PST, and HST. Which tax applies depends on the province, the type of transaction, and, for businesses, where the supply is considered to take place.
GST is a 5% federal tax charged across Canada. PST is a separate provincial tax used in British Columbia, Saskatchewan, Manitoba, and Quebec. HST combines the federal GST with a provincial component in Ontario, New Brunswick, Newfoundland and Labrador, Nova Scotia, and Prince Edward Island.
For consumers, the difference mainly affects the amount shown on a receipt. For businesses and importers, it can affect registration, pricing, cash flow, tax recovery, and landed cost.
This guide explains the three systems, provides the 2026 rates by province and territory, and covers how sales tax applies to imports, e-commerce businesses, and cross-border transactions.
GST vs HST vs PST at a Glance
The simplest way to understand Canada’s sales tax system is to separate the federal GST from the provincial tax layer.
The three configurations explained
Canada uses three general configurations:
- GST only: 5% federal GST applies.
- GST + PST: 5% GST and a separate provincial tax apply.
- HST: The federal and provincial components are combined into one tax.
| Tax system | Federal component | Provincial component | Provinces |
|---|---|---|---|
| GST only | 5% | None | AB, NT, NU, YT |
| GST + PST/RST/QST | 5% | Separate | BC, SK, MB, QC |
| HST | Included | Included | ON, NB, NL, NS, PE |
GST and HST are administered through the federal GST/HST system, while PST, RST, and QST have separate provincial administration. Quebec is different because Revenu Québec administers QST and GST/HST for Quebec businesses.
The distinction matters particularly for businesses because registering for GST/HST does not automatically satisfy every provincial sales tax obligation.
What Is GST (Goods and Services Tax)?
GST is a 5% federal value-added tax collected on most taxable goods and services in Canada, including the federal tax applicable to most imported goods.
The 5% federal rate
The GST rate has been 5% since January 1, 2008.
The four jurisdictions without a general provincial sales tax are:
- Alberta
- Northwest Territories
- Nunavut
- Yukon
A $1,000 taxable purchase in Alberta would generally attract $50 GST, producing a $1,050 total before any other applicable charges.
Where GST applies
GST applies to most taxable supplies of goods and services in Canada. Certain goods and services are zero-rated, meaning they are taxed at 0%, while others are exempt.
This distinction matters to businesses. A zero-rated supply is still a taxable supply for many GST/HST purposes, meaning a registered business can generally claim eligible Input Tax Credits on related expenses. Exempt supplies are treated differently.
Basic groceries are a common example of a zero-rated supply.
The four GST-only jurisdictions
Alberta, Northwest Territories, Nunavut, and Yukon do not have a general provincial sales tax.
That means the standard sales tax on an ordinary taxable purchase is 5% GST.
This does not mean every transaction is taxed at 5%. Product-specific exemptions, zero-rated supplies, and other rules can still apply.
How GST works as a value-added tax
Registered businesses generally collect GST on taxable sales and recover eligible GST paid on business inputs through Input Tax Credits.
For example:
- GST collected from customers: $2,000
- Eligible GST paid on business expenses: $1,200
- Net GST to remit: $800
The actual calculation depends on the business’s circumstances and supporting documentation.
For importers, eligible GST paid at the border can also generally form part of an ITC claim.
What Is PST (Provincial Sales Tax)?
PST is a provincial consumption tax charged separately from the federal GST in British Columbia, Saskatchewan, Manitoba, and Quebec.
British Columbia PST (7%)
British Columbia charges 7% PST in addition to 5% GST.
A $1,000 taxable purchase would generally produce:
- GST: $50
- PST: $70
- Total tax: $120
- Total price: $1,120
BC has its own registration rules for businesses selling taxable goods and services into the province. Certain out-of-province sellers can have registration obligations based on their BC revenue.
Saskatchewan PST (6%)
Saskatchewan charges 6% PST in addition to 5% GST.
The Saskatchewan Ministry of Finance administers its own PST system, including registration and collection requirements.
Certain small traders can qualify for exceptions from licensing, but businesses should review the provincial rules rather than assuming that federal GST/HST registration covers Saskatchewan PST.
Manitoba RST (7%)
Manitoba calls its provincial tax the Retail Sales Tax (RST) rather than PST.
The general rate is 7%, which is added separately to the 5% GST.
Manitoba has its own registration rules and specific provisions affecting businesses that purchase taxable goods from suppliers outside the province.
Quebec QST (9.975%) and Revenu Québec administration
Quebec’s provincial tax is the Quebec Sales Tax (QST) and the rate is 9.975%.
The QST is calculated separately from the 5% GST, producing a combined general rate of 14.975%.
Quebec’s QST is administered by Revenu Québec rather than the Canada Revenue Agency, which affects how businesses register and remit provincial tax in the province.
Revenu Québec also administers GST/HST for Quebec businesses under the federal-provincial agreement.
How PST stacks on GST
PST is generally charged separately from GST.
For a $2,000 taxable purchase in Saskatchewan:
- GST at 5%: $100
- PST at 6%: $120
- Total tax: $220
- Total price: $2,220
This differs from HST, where the federal and provincial components are combined into one rate.
Why PST is generally not recoverable
Provincial sales tax generally cannot be recovered through an Input Tax Credit in the same way as GST/HST.
There are provincial exemptions, rebates, and special rules for certain industries and purchases, but there is no broad PST equivalent to the federal ITC system.
For businesses calculating landed cost, this distinction can be significant because GST may ultimately be recoverable while PST can remain a business cost.
What Is HST (Harmonized Sales Tax)?
HST combines the 5% federal GST with a provincial component into one harmonized tax collected through the federal GST/HST system.
The five HST provinces and their rates
| Province | HST rate |
|---|---|
| Ontario | 13% |
| Nova Scotia | 14% |
| New Brunswick | 15% |
| Newfoundland and Labrador | 15% |
| Prince Edward Island | 15% |
The Nova Scotia rate drop
Nova Scotia reduced its HST from 15% to 14% on April 1, 2025, when the provincial component fell from 10% to 9%.
The general HST rate therefore remains 14% in Nova Scotia in 2026.
How HST blends federal and provincial
Consider a $1,000 taxable sale in Ontario:
- HST at 13%: $130
- Total: $1,130
The customer does not normally receive separate GST and Ontario provincial tax charges. They pay the single 13% HST.
For registered businesses, eligible HST paid on commercial inputs can generally be recovered through ITCs, subject to the applicable requirements.
A brief history of harmonization
HST was first introduced in the Atlantic provinces in 1997. Ontario and British Columbia adopted HST in 2010. British Columbia subsequently returned to the separate GST and PST model in 2013.
Nova Scotia later reduced its rate from 15% to 14% in 2025.
Complete Sales Tax Rates by Province and Territory (2026)
Canada’s general sales tax rates range from 5% to 15%, depending on the province or territory.
| Province/Territory | GST | PST/RST/QST | HST | Combined general rate |
|---|---|---|---|---|
| Alberta | 5% | None | N/A | 5% |
| British Columbia | 5% | 7% PST | N/A | 12% |
| Saskatchewan | 5% | 6% PST | N/A | 11% |
| Manitoba | 5% | 7% RST | N/A | 12% |
| Ontario | Included | Included | 13% | 13% |
| Quebec | 5% | 9.975% QST | N/A | 14.975% |
| New Brunswick | Included | Included | 15% | 15% |
| Nova Scotia | Included | Included | 14% | 14% |
| Newfoundland and Labrador | Included | Included | 15% | 15% |
| Prince Edward Island | Included | Included | 15% | 15% |
| Northwest Territories | 5% | None | N/A | 5% |
| Nunavut | 5% | None | N/A | 5% |
| Yukon | 5% | None | N/A | 5% |
The 5% group: Alberta, NT, NU, YT
These four jurisdictions have no general provincial sales tax.
Ordinary taxable purchases generally attract only the 5% GST.
The GST plus PST group: BC, SK, MB, QC
These provinces charge GST plus a separate provincial tax.
The combined general rates are:
- BC: 12%
- Saskatchewan: 11%
- Manitoba: 12%
- Quebec: 14.975%
The provincial component has its own registration and compliance rules.
The HST group: ON, NS, NB, NL, PE
These provinces use one harmonized tax:
- Ontario: 13%
- Nova Scotia: 14%
- New Brunswick: 15%
- Newfoundland and Labrador: 15%
- PEI: 15%
Zero-rated and exempt items
The general rate does not apply to every product.
Basic groceries, certain prescription drugs, and qualifying medical devices can receive zero-rated treatment under GST/HST rules. Other supplies are exempt.
Zero-rated and exempt are not interchangeable terms. The distinction can affect whether a registered business can recover GST/HST paid on related expenses.
How GST, HST, and PST Apply to Imports into Canada
Most taxable commercial goods imported into Canada are subject to 5% GST at the border, regardless of whether the final destination is an HST or PST province.
The 5% GST on declared value
Import GST is generally calculated using the value for tax established under the customs rules, together with applicable customs duty and certain other taxes.
For example:
- Customs value: $20,000
- Duty: $1,000
- GST base: $21,000
- GST at 5%: $1,050
The actual calculation can differ for goods subject to special valuation, excise taxes, additional duties, or other measures.
GST on the customs clearance fee
The GST calculated on imported goods should not be confused with GST charged by a customs broker on its own services.
A broker may charge GST/HST on its clearance service depending on the transaction. That service charge is separate from the import GST assessed by CBSA.
Why HST provinces still pay only 5% at the border
An importer shipping $10,000 of taxable goods to Ontario generally does not pay 13% HST to CBSA simply because the goods are destined for Ontario.
The import tax is generally 5% GST:
- Customs value: $10,000
- Import GST: $500
The provincial component is dealt with under the applicable rules when the goods are subsequently supplied or used.
PST self-assessment obligations
PST provinces can create additional obligations when imported goods are brought into the province for use.
If a foreign supplier does not collect PST, a purchaser may have to self-assess the applicable provincial tax.
The precise rules vary by province and depend on the goods, purchaser, and intended use.
CARM and importer GST accounting
CARM, the CBSA Assessment and Revenue Management system, is now the system commercial importers use to manage their customs accounting and payments with CBSA.
CARM became the official system of record for commercial accounting and payment in October 2024.
For importers, accurate records of customs declarations, duties, and import GST are important both for CBSA compliance and for supporting eligible ITC claims.
A worked landed cost example
Suppose a commercial shipment has:
- Customs value: $25,000
- Duty at 8%: $2,000
- GST base: $27,000
- Import GST at 5%: $1,350
The importer initially faces $3,350 in duty and GST, before freight, brokerage, and other costs.
If the importer is GST/HST registered and meets the ITC requirements, the $1,350 import GST may generally be recoverable.
This is why importers should distinguish between cash paid at importation and tax that ultimately becomes a business cost.
Registering for GST/HST
Most businesses must register for GST/HST once they exceed the $30,000 small supplier threshold, although businesses below the threshold can generally register voluntarily.
The $30,000 small supplier threshold
The threshold generally applies to taxable revenues over four consecutive calendar quarters.
If a business exceeds $30,000 in a single calendar quarter, registration can become mandatory immediately.
The calculation is therefore not simply based on one calendar year’s total revenue.
How the four-quarter calculation works
Businesses should monitor taxable revenue on a rolling basis.
For example, if a business remains below $30,000 during each individual quarter but its taxable revenue exceeds $30,000 when the relevant four consecutive quarters are combined, the business needs to determine whether the small-supplier rules have been exceeded and when registration becomes effective.
Mandatory versus voluntary registration
A business below the threshold can generally register voluntarily.
Voluntary registration can be useful where the business has significant taxable expenses because registration may allow it to recover eligible GST/HST through ITCs.
Why importers often register voluntarily
An importer can incur substantial GST before it reaches the $30,000 sales threshold.
For example, if a business pays $4,000 of eligible import GST, voluntary GST/HST registration may allow that amount to be claimed as an ITC if all requirements are satisfied.
Automatic HST registration
There is no separate “HST registration” for every province.
A business registers for GST/HST and then applies the applicable HST rules based on where taxable supplies are made.
The rate charged depends on the place-of-supply rules and the nature of the transaction.
Registering for Provincial Sales Tax
GST/HST registration does not automatically register a business for provincial sales tax.
Province-by-province registration
Each PST province has its own registration rules.
A business selling into multiple provinces may therefore need to review several separate provincial systems.
BC, Saskatchewan, Manitoba registration
BC, Saskatchewan, and Manitoba each operate separate provincial sales tax systems.
Registration thresholds and exemptions differ.
For example, BC has specific rules for qualifying out-of-province sellers, while Saskatchewan and Manitoba have their own rules for small businesses and taxable purchases.
Quebec QST registration through Revenu Québec
Businesses subject to QST register through Revenu Québec.
Quebec’s system is distinct because Revenu Québec administers both QST and GST/HST for Quebec businesses.
Out-of-province seller obligations
A business does not necessarily avoid provincial tax obligations simply because it has no physical office in a province.
E-commerce sellers, marketplace operators, and businesses shipping goods directly to customers should determine whether their activities create a provincial registration and collection obligation.
Recovering Tax: Input Tax Credits and What You Cannot Reclaim
GST/HST paid on eligible business inputs can generally be recovered through Input Tax Credits, while PST generally does not have the same broad recovery mechanism.
How input tax credits work
A registered business can generally claim ITCs for eligible GST/HST paid or payable on goods and services acquired for commercial activities.
The business must meet CRA requirements and retain supporting documentation.
Reclaiming GST on imports
Import GST can be an important ITC for commercial importers.
The importer must generally be entitled to claim the ITC and maintain records supporting the import and tax paid.
CARM records and customs documentation are therefore important.
Non-resident recovery through a Canadian purchaser
A non-resident importer needs to determine who is legally responsible for importing the goods and who is making the Canadian taxable supply.
If a non-resident business pays import GST but is not entitled to claim an ITC, the tax can become a cash cost.
In some structures, the Canadian purchaser may instead be the party entitled to claim the relevant ITC.
Why PST is generally not recoverable
PST generally does not operate as a recoverable value-added tax.
A business may qualify for specific provincial exemptions or rebates, particularly where goods are purchased for resale or manufacturing, but ordinary PST should not be treated as automatically recoverable.
Exempt versus zero-rated and why it matters
Zero-rated supplies are taxed at 0%, while exempt supplies are outside the GST/HST tax system.
A registered business making zero-rated supplies can generally continue claiming eligible ITCs related to those supplies.
Businesses making exempt supplies can face restrictions on recovering GST/HST on related expenses.
Digital Economy and E-commerce Tax Rules
Canada introduced specific GST/HST measures in 2021 for certain non-resident vendors, digital platform operators, and cross-border digital transactions.
The 2021 federal digital economy measures
The measures were designed to ensure that GST/HST applies more effectively to digital products, services, and qualifying goods sold by businesses that may not have a traditional Canadian physical presence.
Non-resident vendor registration
A non-resident business selling qualifying goods directly to Canadian consumers can have GST/HST registration obligations.
For qualifying goods under the digital economy rules, the applicable threshold is generally $30,000 of qualifying revenue over a 12-month period.
Digital platform operator obligations
Certain online marketplaces and platform operators may have responsibility for collecting GST/HST on transactions made through their platforms.
This can affect foreign sellers using Canadian-facing marketplaces.
Provincial digital tax measures
Federal GST/HST compliance does not automatically settle provincial tax obligations.
Provinces such as British Columbia and Saskatchewan have their own rules affecting certain digital products, services, and marketplace activities.
E-commerce businesses should therefore review both federal and provincial registration requirements.
Special Situations and Exemptions
Sales tax depends on more than the province. The product, customer, use, and place of supply can all change the tax treatment.
Basic groceries, prescription drugs, medical devices
Basic groceries are generally zero-rated for GST/HST.
Certain prescription drugs and medical devices can also receive zero-rated or exempt treatment depending on the specific product and applicable requirements.
First Nations point-of-sale relief
Special tax relief can apply to eligible purchases involving First Nations individuals and entities.
These rules are not a blanket exemption for every transaction involving an Indigenous customer. Eligibility depends on the purchaser, seller, goods, location, and applicable legislation.
Place-of-supply rules for interprovincial sales
Businesses selling across provincial borders need to determine where a supply is considered made before selecting the tax rate.
This is particularly important for:
- E-commerce
- Services
- Equipment leasing
- Drop shipping
- Subscription businesses
- Businesses operating warehouses in multiple provinces
A business in Alberta selling to an Ontario customer cannot automatically assume that the 5% Alberta rate applies. The CRA place-of-supply rules determine the applicable GST/HST treatment.
Vehicle tax nuances
Vehicles can have additional provincial tax rules.
British Columbia, for example, has specific PST provisions covering vehicles purchased outside the province and brought into BC.
For imported cars, boats, recreational vehicles, and other high-value goods, provincial tax should therefore be considered separately from customs duty and import GST.
How Canada’s Sales Tax Compares to the US System
Canada has a federal GST system, while the United States does not have a single federal sales tax equivalent.
No US federal sales tax
US sales taxes are primarily imposed by states and local jurisdictions.
A business can therefore face different rates and registration requirements depending on where it sells.
Canada has a nationwide federal GST framework supplemented by provincial taxes or HST.
State-level sales tax
A US company selling into Canada may need to consider both:
- US state sales tax
- Canadian GST/HST
- Provincial PST, RST, or QST
- Customs duty
- Import GST
- Other applicable Canadian taxes
Why US sales tax does not apply to imports
US state sales tax is not a federal import tax.
Canada, by contrast, generally assesses GST when taxable commercial goods enter Canada.
Canadian customs duty and import GST should therefore be included when calculating the landed cost of a shipment entering Canada.
How the two systems interact for cross-border business
A US business selling into Canada should determine:
- Who is the importer of record?
- Who pays the import GST?
- Where are the goods imported?
- Where is the subsequent sale made?
- Is GST/HST registration required?
- Does provincial registration apply?
- Who is entitled to recover import GST?
The answers can significantly affect the final cost of a cross-border transaction.
Frequently Asked Questions
Are HST and GST the same?
No. GST is the 5% federal tax, while HST combines the federal GST with a provincial component. HST is used in five provinces, while GST applies throughout Canada.
Is HST the same as PST and GST?
No. HST combines the federal and provincial components into one tax, while PST is charged separately from GST. BC, Saskatchewan, Manitoba, and Quebec use separate provincial tax systems.
What’s the difference between PST and HST?
PST is a separate provincial tax, while HST combines federal and provincial tax into one rate. For example, BC generally charges 5% GST plus 7% PST, while Ontario charges 13% HST.
Do I pay PST and GST, or HST?
It depends on the province. BC, Saskatchewan, Manitoba, and Quebec generally charge GST plus a separate provincial tax. Ontario, Nova Scotia, New Brunswick, Newfoundland and Labrador, and PEI use HST.
What does PST stand for?
PST stands for Provincial Sales Tax. Manitoba calls its tax RST and Quebec calls its tax QST.
Which provinces have no PST?
Alberta, Northwest Territories, Nunavut, and Yukon have no general provincial sales tax. Ordinary taxable purchases in these jurisdictions generally carry 5% GST.
Do I pay GST or HST on imports into Canada?
Most taxable imports are subject to 5% GST at the border. The provincial tax treatment is separate and depends on the destination, use, and subsequent transaction.
Can I get back the GST I pay on imports?
A GST/HST-registered business may generally recover eligible import GST through an Input Tax Credit. The importer must meet the applicable CRA requirements and retain supporting documentation.
Is PST recoverable like GST?
Generally, no. PST does not have the same broad ITC mechanism as GST/HST, although provincial exemptions and rebates can apply to specific purchases.
When do I have to register for GST/HST?
Most businesses must register after exceeding the $30,000 small supplier threshold under the applicable CRA rules. The threshold generally considers taxable revenues over four consecutive calendar quarters.
Do non-resident businesses have to charge Canadian sales tax?
Sometimes. Non-resident businesses can have GST/HST obligations under Canada’s normal or digital economy rules, and provincial registration may apply separately.
What sales tax do I charge for customers in another province?
The applicable rate depends on the place-of-supply rules. A business should not select the tax rate solely based on where its office is located.
Why is Quebec’s tax administered differently?
QST is administered by Revenu Québec, which also administers GST/HST for Quebec businesses under the federal-provincial agreement.
What is the total sales tax in each province in 2026?
General combined rates range from 5% to 15%. Alberta, NT, NU, and YT are generally 5%; BC is 12%; Saskatchewan is 11%; Manitoba is 12%; Quebec is 14.975%; Ontario is 13%; Nova Scotia is 14%; and NB, NL, and PEI are 15%.
The Bottom Line
GST, HST, and PST are different parts of Canada’s sales tax system, and the correct tax depends on the province, transaction, and circumstances.
The most important points are:
- GST is 5% federally.
- HST combines federal and provincial tax.
- PST, RST, and QST are separate provincial taxes.
- BC, Saskatchewan, Manitoba, and Quebec use separate provincial taxes.
- Ontario, Nova Scotia, New Brunswick, Newfoundland and Labrador, and PEI use HST.
- Alberta, Northwest Territories, Nunavut, and Yukon generally have GST only.
- Most taxable imports are subject to 5% GST at the border.
- Registered importers may generally recover eligible import GST through ITCs.
- PST generally cannot be recovered through the same ITC mechanism.
- The $30,000 GST/HST threshold does not automatically determine provincial registration.
- E-commerce and non-resident businesses can have additional tax obligations.
- Place-of-supply rules matter when selling across provincial borders.
- CARM is now central to commercial import accounting with CBSA.
For importers, sales tax should be considered alongside customs duty, brokerage, freight, and other charges when calculating landed cost.
If you are planning a shipment into Canada, Clearit’s Canada Duty and Tax Calculator can help estimate the applicable customs charges and import taxes. For complex commercial imports, particularly those involving GST/HST recovery, provincial PST, or a non-resident importer structure, confirm the tax treatment before the goods are shipped.
