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How to Calculate Sales Tax in Canada

One federal tax, four different provincial systems, and a special case in Quebec: here's how the calculation actually works, with worked examples at the rates in effect in 2026.

In Canada, the price on the shelf is almost always a price before tax. What gets added at the register depends on the province where the sale takes place, not on where the buyer lives. Depending on the province, you'll see a single tax line on your receipt, two separate lines, or a single federal tax.

1. GST: the Same Everywhere

The Goods and Services Tax (GST) is a federal tax of 5% collected by the Canada Revenue Agency. It applies in all thirteen provinces and territories, on the same goods and services across the country. A $1,000 computer carries $50 of GST in Vancouver just as it does in Calgary.

Where the systems differ is in what gets added on top of that GST. Three scenarios exist: the province has merged its tax with GST (that's HST), it collects a separate provincial tax (QST in Quebec, PST or RST elsewhere), or it collects none at all.

In Alberta, Yukon, the Northwest Territories and Nunavut, the 5% GST is the only sales tax. A $100 purchase comes to $105.00 there, the lowest rate in the country.

2. HST: When Everything Is Merged

Five provinces have merged their provincial tax with the federal GST to form the Harmonized Sales Tax (HST). A single tax then appears on the receipt, administered by the Canada Revenue Agency, which remits the provincial share back to the province.

• Ontario: 13%
• Nova Scotia: 14%
• New Brunswick: 15%
• Prince Edward Island: 15%
• Newfoundland and Labrador: 15%

The 5% federal share is included in these rates: it isn't billed on top. In Ontario, the 13% breaks down into a 5% federal share and an 8% provincial share, but the customer sees only one line.

The article on calculating sales tax in Ontario details this system and the place-of-supply rule for interprovincial sales.

The math: $45.99 × 13% = $5.98 in tax, for a total of $51.97. In other words, multiply the price by 1.13.

3. QST: Quebec's Special Case

Quebec collects its own sales tax, the QST, at a rate of 9.975%, on top of the federal 5% GST. Both taxes appear on separate lines of the receipt. Importantly, both are calculated on the price before tax. QST is not applied on top of GST.

That detail changed in 2013. Before then, QST was calculated on the GST-included price, but at a lower rate of 9.5%: 1.05 × 1.095 works out to exactly 1.14975. The reform therefore changed the method and the nominal rate at the same time, without changing a single cent of what buyers paid. The real combined rate stayed at 14.975%.

The mistake to avoid today is applying the current 9.975% rate on a GST-included price. On a $100 purchase, that compounded calculation would give $115.47 instead of $114.98: a $0.49 gap that widens on larger amounts.

Each tax starts from the same $250.00 amount: 250 × 5% = $12.50 for GST, and 250 × 9.975% = $24.94 for QST ($24.9375 rounded to the cent). On $1,000, that's $50.00 of GST and $99.75 of QST, for a total of $1,149.75. Calculating both taxes means applying two separate percentages to the same starting price, then adding the two results, never one after the other.

Need to isolate just one of the two taxes, for a tax return or an out-of-province purchase? See Calculating GST or QST on Their Own.

4. PST: a Separate Provincial Tax

Three western provinces collect a separate provincial sales tax that coexists with GST without being harmonized with it:

• British Columbia: PST of 7%, or 12% with GST
• Manitoba: Retail Sales Tax (RST) of 7%, or 12%
• Saskatchewan: PST of 6%, or 11%

As in Quebec, these taxes are calculated on the price before tax, without compounding. An $80 purchase in British Columbia carries $4.00 of GST and $5.60 of PST, for a total of $89.60. In Saskatchewan, $200 becomes $222.00 ($10.00 + $12.00); in Manitoba, $120 becomes $134.40 ($6.00 + $8.40).

An important difference for businesses: GST, HST and QST paid on business purchases are generally recoverable through input tax credits. PST and RST are not: they're a real cost to the business, except for specific exemptions. The tax bases also differ: a good exempt from GST can still be subject to PST, and the reverse also happens.

5. How to Calculate Tax from a Total (Tax-Included Price)

The reverse calculation is useful whenever you only know the final amount: a receipt without a breakdown, an all-inclusive price, a lump sum to split apart. The rule comes down to a division:

Price before tax = total amount ÷ (1 + combined rate)

In Quebec, divide by 1.14975; in Ontario, by 1.13; in Nova Scotia, by 1.14; in New Brunswick, Prince Edward Island and Newfoundland and Labrador, by 1.15; in British Columbia and Manitoba, by 1.12; in Saskatchewan, by 1.11; in Alberta and the territories, by 1.05.

A $56.50 total in Ontario therefore corresponds to $50.00 before tax and $6.50 of HST. In Quebec, $114.98 corresponds to $100.00 before tax, $5.00 of GST and $9.98 of QST.

The common mistake is subtracting the percentage from the total: removing 14.975% from $114.98 gives $97.76, a result that's wrong by more than two dollars. The percentage applies to the price before tax, never to the total. The reverse sales tax calculator does this for all thirteen provinces and territories.

Need to do this calculation in Excel or Google Sheets? See GST and QST Formula for Excel and Google Sheets, with correct rounding and a formula per province.

6. Exempt or Zero-Rated Goods

Not every purchase is taxed at the province's combined rate. The federal system distinguishes two situations: zero-rated supplies, taxable at 0%, and exempt supplies, outside the scope of the tax altogether. The difference mostly matters to businesses, since only the former carry the right to input tax credits.

The main cases covered by zero-rating or exemption:

• basic groceries (bread, milk, vegetables, unprepared meat); restaurant meals, soft drinks and snack foods remain taxable;
• prescription drugs and several medical devices;
• most health, dental and educational services;
• financial services and long-term residential rent.

On top of that, each province has its own rebates and exemptions. Quebec rebates QST on printed books; Ontario applies a rebate of the provincial HST share on books, children's clothing and diapers; British Columbia exempts children's clothing and basic food from PST. Rules vary from province to province, and the same product can be zero-rated on one side of a provincial border and taxed on the other.

Conversely, some purchases are taxed more heavily or under special rules: alcohol, tobacco, tourist accommodation, insurance premiums and used vehicles sold between individuals follow distinct systems. Buying real estate isn't taxed by GST or QST (except new construction), but triggers municipal land transfer duties, calculated on a graduated scale rather than a flat rate. Gasoline follows the same principle as lodging tax: Quebec's specific fuel tax and the federal excise tax are added to the price per litre first, and GST and QST are then calculated on that already tax-inclusive price.

Do the Calculation

The sales tax calculator automatically applies the chosen province's system and shows the breakdown line by line, in both directions. The most common questions about GST and QST are gathered in the frequently asked questions, and more specific cases (Excel, invoicing, isolating a tax) are covered on the blog.

Calculate my sales tax

Sources

• Canada Revenue Agency · GST/HST rates and place-of-supply rules
• Revenu Québec · Basic rules for applying the GST/HST and QST
• Revenu Québec · Taxable, zero-rated and exempt goods and services

The rates used across this site are re-verified against these two sources with every update. The method is described on the About page.

Guide provided for informational purposes, current with the rates in effect in 2026. CalculatriceTaxes.ca is an independent site, not affiliated with the Canada Revenue Agency or Revenu Québec.