Updated Checked by the Tax-Services.ca editorial team How we check
We can’t give you a reliable price for accounting software in Canada, because plans and discounts change and we didn’t verify any vendor’s current rates. What we can do is show you how to work out the true yearly cost of any package, including the GST/HST you may get back. That last part often shrinks the bill more than a coupon would.
What goes into accounting software costs?
The subscription is the visible part. Around it sit extras that vendors price separately, and that’s where budgets slip. Go through this list against any plan you’re looking at.
- The base plan, and what caps it has on users, invoices or bank connections
- Payroll, which is frequently an add-on charged per employee
- Payment processing fees on invoices your customers pay online
- Extra users, such as your bookkeeper or accountant
- Setup, data import and training, if you pay someone for it
Then add your own time. Five hours a month of manual entry has a price too, even if nobody sends you an invoice for it.
How do you compare two plans fairly?
Work in yearly dollars, and put everything you’d really use on the same line. Here’s a made-up example, with prices we invented only to show the sums. Plan A is $30 a month with payroll included. Plan B looks cheaper at $20 a month, but payroll is a $10 monthly add-on. Over 12 months, A costs $360 and B costs $360 too. The sticker price told you nothing. Add a pay-per-employee fee or a cap on invoices and the gap can swing either way, so run the sum with your own numbers.
Can you get the sales tax back?
Often, yes. If you’re registered for GST/HST and the software is used in your business, the tax on the subscription is generally claimable as an input tax credit. Take a yearly charge of $1,000 before tax for an Ontario business. HST at 13% adds $130, so the invoice is $1,130. You claim the $130 on your GST/HST return, and the real cost is back to $1,000. You can check the split with our HST reverse calculator.
The figures change by province, as the table shows. These are the rates in the CRA table behind our tools.
| Province | Tax on a $1,000 subscription |
|---|---|
| Ontario | $130.00 HST |
| Alberta | $50.00 GST |
| Quebec | $50.00 GST plus $99.75 QST |
| British Columbia | $50.00 GST plus $70.00 PST |
A caution. A provincial sales tax such as BC PST or Quebec’s QST isn’t always recoverable the same way as GST/HST, and the rules differ. For QST, check Revenu Quebec. For BC, check the province’s own guidance. And if you aren’t registered at all, you can’t claim anything, so the full $1,130 is your cost.
What does the deduction add?
Once the tax is sorted, the $1,000 is a business expense that lowers your taxable income. The saving depends on your tax bracket. At a marginal rate of 30%, which is an example and not a rule, the deduction saves $300 and the net cost falls to about $700. Look up your own rate with the marginal tax rate calculator, and note that it shows about 73% in Ontario near $200,000 because the health premium rises in narrow bands there. Don’t use that figure to judge a software expense.
If you run a corporation, the math differs again. The corporate tax calculator covers the company side. Whether the software is fully deductible in the year is a question for the CRA’s rules or your accountant. We haven’t covered it here.
Is the cheapest plan the right one?
Usually not. Ask which plan you’d outgrow within a year and what the jump costs. A plan with a low cap on invoices is fine at 20 invoices a month and painful at 60. Also check what happens to your data if you cancel. The CRA’s page on keeping records says you generally need to hold on to them for six years from the end of the last tax year they relate to, so you need a way to export them. A lapsed subscription that locks your books is a real cost.
Free tools exist, and a spreadsheet plus a folder of receipts can work for a very small sideline. But you still have to track tax and keep the records readable. If your revenue from taxable supplies goes over $30,000 in a quarter or over four quarters in a row, the CRA says you must register for GST/HST, and the tracking gets serious.
Mistakes to avoid
People compare monthly fees and forget the annual total. They compare plans without checking payroll and payment fees. And they forget to claim the tax back, which is like leaving 13% in Ontario on the table. Run your numbers through the percentage calculator if you want a quick split between plans.
One more: signing up for a big annual prepay at a discount before you’ve used the tool for a month. Saving a few bucks doesn’t help if you hate the software by week three.
How we checked the figures
Tax rates, the $30,000 registration threshold and the six year record period come from the Canada Revenue Agency, checked in September 2026. The 30% rate and the plan prices in the comparison example are only illustrations. We didn’t verify any software price, plan or discount, and we don’t claim a link to the CRA or any vendor.
Frequently asked questions
How much does accounting software cost in Canada?
We couldn't verify current vendor prices. Compare the plan, payroll, payment fees and extra users, then subtract the tax you can recover.
Can I claim GST/HST on the subscription?
If you're registered and use it in your business, generally yes, as an input tax credit. A $1,000 Ontario subscription carries $130 HST you can claim back.
Is accounting software tax deductible?
It's generally a business expense. How it's deducted can depend on your situation, so confirm with the CRA's guidance or your accountant.
Is QST or PST recoverable like HST?
Not always in the same way. Check Revenu Québec for QST and your province's own guidance for PST.
Do I need paid software at all?
Not at very low volume. You still need to track sales tax and keep records for six years.
All family and benefits calculators
- Self-employed taxes in Canada: income, CPP and GST
How tax works when you are self-employed in Canada: reporting income and expenses, paying both halves of CPP, instalments and when to register for GST