Complete Guide to GST & HST in Canada

TL;DR

Canada uses a mixed sales-tax model. The federal GST is 5% everywhere, but each province decides whether to use HST or a separate provincial tax. In 2026, total rates range from 5% to 15%.

What Is GST?

GST (Goods and Services Tax) is a federal tax applied to most goods and services in Canada. It is administered by the Canada Revenue Agency (CRA) and currently set at 5%.

What Is HST?

HST (Harmonized Sales Tax) merges federal GST and provincial sales tax into one combined rate. Businesses charge one tax line, and CRA handles administration.

Current HST provinces and rates

| Province | HST Rate | |---|---| | Ontario | 13% | | Nova Scotia | 14% | | New Brunswick | 15% | | Newfoundland and Labrador | 15% | | Prince Edward Island | 15% |

Provinces With Separate Taxes

Some provinces keep a separate provincial tax model:

• BC: 5% GST + 7% PST = 12%
• Manitoba: 5% GST + 7% RST = 12%
• Saskatchewan: 5% GST + 6% PST = 11%
• Quebec: 5% GST + 9.975% QST = 14.975%

Alberta, Yukon, Northwest Territories, and Nunavut only apply 5% GST.

How to Calculate GST/HST Quickly

Forward calculation (before-tax to total)

Total = Amount × (1 + Tax Rate)

Example for Ontario:

• Amount: $100
• Tax rate: 13%
• Total: $100 × 1.13 = $113

Reverse calculation (total to before-tax)

Before-tax = Total ÷ (1 + Tax Rate)

Example for Ontario:

• Total: $113
• Tax rate: 13%
• Before-tax: $113 ÷ 1.13 = $100

For a step-by-step reverse example, see Reverse GST Calculator Guide.

Business Rules You Should Know

1) $30,000 Small Supplier Threshold

GST/HST registration is generally required once taxable revenue exceeds $30,000 in a single calendar quarter or over four consecutive calendar quarters. See Small Supplier Rule Explained.

2) Place of Supply Matters

For interprovincial sales, you usually charge based on where the customer receives the supply. See E-commerce Tax Guide.

3) Input Tax Credits (ITCs)

Registered businesses can often recover GST/HST paid on eligible business expenses. See Input Tax Credits Guide.

Common Mistakes

• Charging home-province tax for all orders
• Forgetting reverse calculations when auditing receipts
• Missing supporting documents for ITCs
• Not updating tax settings after rate changes

A practical checklist is in Common GST/HST Mistakes.

Run the Canada GST/HST calculator for province-based totals →

FAQ

Is GST always 5%?

At the federal level, yes, it is currently 5%. Provincial components can change through provincial budget decisions.

Why is Quebec different?

Quebec uses QST (9.975%) with GST. The combined rate is 14.975%, and administration is distinct from HST provinces.

Is Nova Scotia 14% or 15%?

Nova Scotia is 14% HST (rate in effect on or after April 1, 2025). New Brunswick, Newfoundland and Labrador, and PEI are 15% HST.

Sources

• CRA: Charge and collect the tax - Which rate to charge
• CRA: When to register and start charging the GST/HST
• CRA: GST/HST calculator

Last verified: February 15, 2026