How Much Is Sales Tax in Canada? Understanding GST, PST, and HST Rates

Learn about Canada's sales tax rates including GST, PST, and HST. Discover how tax rates vary by province from 5% to 15%.

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Sales tax in Canada, known as the Goods and Services Tax (GST), is 5% federally. Additionally, most provinces have a Provincial Sales Tax (PST) or a Harmonized Sales Tax (HST) that combines both federal and provincial taxes, making the overall rate vary between 5% and 15% depending on the province.

FAQs & Answers

  1. What is the difference between GST and PST in Canada? GST (Goods and Services Tax) is the 5% federal sales tax applied across Canada, while PST (Provincial Sales Tax) is a separate tax imposed by some provinces, varying by location.
  2. Which provinces in Canada use HST instead of separate GST and PST? Provinces like Ontario, Nova Scotia, New Brunswick, Newfoundland and Labrador, and Prince Edward Island use Harmonized Sales Tax (HST), which combines GST and PST into a single tax.
  3. How do I know the exact sales tax rate for my province in Canada? Sales tax rates depend on your province. You can check official provincial government websites or Canada Revenue Agency resources for up-to-date rates ranging between 5% and 15%.