What Is the Standard Sales Tax Rate in Canada? Understanding GST, PST, and HST

Discover how sales tax rates in Canada vary by province, ranging from 5% to 15% including GST, PST, and HST components.

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The tax rate in Canada varies by province and territory, so there isn't a single tax rate that applies uniformly across the country. Sales tax rates can range from 5% to 15%, depending on the combination of Goods and Services Tax (GST), Provincial Sales Tax (PST), and Harmonized Sales Tax (HST) applicable in the location of purchase.

FAQs & Answers

  1. What is the difference between GST, PST, and HST in Canada? GST is a federal Goods and Services Tax of 5%, PST is a provincial sales tax that varies by province, and HST is a combined tax used in some provinces merging GST and PST.
  2. Which provinces in Canada have a 15% sales tax rate? Provinces like Nova Scotia, New Brunswick, Newfoundland and Labrador, Prince Edward Island, and Ontario apply a Harmonized Sales Tax (HST) of 15%.
  3. Is the sales tax rate the same across all Canadian provinces? No, sales tax rates vary across provinces and territories, ranging from 5% federal GST alone to combined rates up to 15% with HST.