Updated Checked by the Tax-Services.ca editorial team How we check
Canada’s value added tax is the GST/HST. It’s a 5% GST in Alberta, the territories and the provinces that charge their own sales tax on top, and a blended HST of 13% to 15% in Ontario and the Atlantic provinces. You pay it at the till, and businesses collect it and send it on. Most shelf prices from coast to coast leave it off, so the number on the tag is never the number you pay.
What is the value added tax rate in each province?
Here are the rates on the CRA’s rate page. Provinces without HST add their own tax to the 5% GST.
| Province or territory | GST or HST | Provincial tax |
|---|---|---|
| Alberta, Northwest Territories, Nunavut, Yukon | 5% | None |
| British Columbia | 5% | 7% PST |
| Manitoba | 5% | 7% PST |
| Saskatchewan | 5% | 6% PST |
| Quebec | 5% | 9.975% QST |
| Ontario | 13% HST | None |
| Nova Scotia | 14% HST | None |
| New Brunswick, Newfoundland and Labrador, Prince Edward Island | 15% HST | None |
Nova Scotia dropped from 15% to 14% on April 1, 2025. The PST, QST and Manitoba’s tax are run by the provinces, so only the GST and HST parts are the federal value added tax.
What does $1,000 cost after tax?
Take a $1,000 purchase of ordinary taxable goods. The GST and HST calculator gives $1,130 in Ontario, $1,140 in Nova Scotia and $1,050 in Alberta. In British Columbia it comes to $1,120, made of $50 GST and $70 PST. In Quebec it’s $1,149.75, because the calculator applies the 9.975% QST to the price before GST.
For a quick ballpark at a restaurant in Ontario, take 13% of the bill. On a $40 dinner that’s $5.20, so $45.20 before any tip. The tip is a separate matter, and it’s your call.
Working backwards? A receipt of $1,130 in Ontario holds $130 of HST. The HST reverse calculator pulls the tax out of a total, and it’s the tool to use when you only have the receipt.
For provinces with separate taxes, the GST and PST calculator and the GST and QST calculator keep the two parts apart.
Why isn’t everything taxed the same?
Because the law sorts sales into three bins. Most goods and services are taxable. Zero-rated items carry tax at 0%, which is how the CRA treats basic groceries like milk, bread and vegetables, prescription drugs and most exports. Exempt items, such as most medical services, long-term rental housing and residential property sales, carry no tax at all.
Zero-rated and exempt sound the same to a shopper. They aren’t the same to the seller. A business that sells zero-rated goods can claim input tax credits for the GST/HST it paid on its own costs. A business that sells only exempt things generally can’t.
How do businesses get their tax back?
That’s the “value added” part. Each business charges tax on its sale and subtracts the tax it paid on what it bought, then remits the difference. A shop in Ontario that sells $2,000 of taxable goods collects $260 of HST. If it paid $130 of HST on its own supplies, it sends $130 to the CRA. The tax sticks to the final buyer.
Not every small business has to join in. The CRA says you’re a small supplier, and don’t have to register, if your worldwide taxable revenue is $30,000 or less in any single calendar quarter and in the last four quarters together. Pass that and you have 29 days after the day you stop being a small supplier to register. If you sell services and run your own payroll too, check the payroll remittance calculator for the other amounts due.
Which province’s rate applies?
The rate of tax to charge depends on the place of supply.
CRA, Charge and collect the GST/HST, canada.ca
That sentence hides most of the confusion. The rate depends on where the sale is treated as made, and that isn’t always where the shop sits. The CRA’s own example is a laptop picked up in Manitoba: the store charges 5% GST plus Manitoba’s 7% PST. Another example on the same page has a furniture store charging 13% HST because the place of supply is Ontario.
The CRA has a whole series of rules for the special cases, such as deliveries across provincial lines, and we haven’t tried to summarize them. If you sell across provinces, read the CRA page first.
What can trip you up?
Mixed receipts, for one. The calculators use one rate for a plain taxable sale, but real receipts mix taxable, zero-rated and exempt lines, so the total on a grocery bill won’t match a single rate. Eight bucks of bread and milk carries no tax, while the bag of chips beside it does.
Old tables, for another. A rate table dated today can go stale, as Nova Scotia’s did in 2025.
How we checked the figures
The CRA‘s GST/HST rate table, its page on types of supply, and its small supplier rules, all read in September 2026. The dollar examples come from our calculators. Rates can change, so check the CRA page before you set prices. No government body has reviewed or endorsed what you read here.
Frequently asked questions
Does Canada have a VAT?
Yes. The federal GST and the HST work as a value added tax. Some provinces also charge their own PST or QST.
What is the HST rate in Ontario?
13%. Nova Scotia is 14% since April 1, 2025, and New Brunswick, Newfoundland and Labrador and Prince Edward Island are 15%.
Is food taxed?
Basic groceries such as milk, bread and vegetables are zero-rated, so the rate is 0%. The CRA's basic groceries page lists what falls outside that rule.
When must a business register for GST/HST?
When taxable revenue passes $30,000 in a single calendar quarter or over four consecutive quarters. Registration is due within 29 days after you stop being a small supplier.
Can I claim back the GST/HST I paid?
Registered businesses can claim input tax credits on costs tied to taxable and zero-rated sales. Sellers of only exempt items generally can't.
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