Understanding Sales Taxes Across Canada

A Province‑by‑Province Guide


Canada’s sales tax landscape is a patchwork of different systems, shaped by provincial choices and federal policy. While the federal Goods and Services Tax (GST) applies nationwide at 5%, each province and territory decides whether to layer on a Provincial Sales Tax (PST) or merge everything into a single Harmonized Sales Tax (HST). The result is a country where crossing a provincial border can change the tax you pay on everything from groceries to electronics.

This article breaks down how each region handles sales tax today.

The HST Provinces: One Blended Tax

Five provinces have chosen simplicity by combining the federal GST with their provincial portion into a single Harmonized Sales Tax. For consumers, this means one tax rate at the checkout and fewer surprises.

  • Ontario – 13%

  • Nova Scotia – 14%

  • New Brunswick – 15%

  • Newfoundland and Labrador – 15%

  • Prince Edward Island – 15%

These provinces rely on the federal government to administer the tax, which reduces administrative overhead and creates a more uniform system.

GST + PST Provinces: Two Separate Taxes

Other provinces prefer to keep their own sales tax systems, collecting PST independently. This approach gives them more control over exemptions, business rules, and revenue.

  • British Columbia – 5% GST + 7% PST (12% total)

  • Manitoba – 5% GST + 7% PST (12% total)

  • Saskatchewan – 5% GST + 6% PST (11% total)

  • Quebec – 5% GST + 9.975% QST (14.975% total)

Quebec is unique: its Quebec Sales Tax (QST) is administered by the province itself and calculated differently from other PST systems, making it one of the more complex models in the country.

GST‑Only Regions: No Provincial Sales Tax

A few jurisdictions keep things simple by charging only the federal GST. These areas have no provincial or territorial sales tax at all.

  • Alberta – 5%

  • Yukon – 5%

  • Northwest Territories – 5%

  • Nunavut – 5%

Alberta is the only province with no PST, a policy choice that has become part of its economic identity.

Why These Differences Matter

Sales tax affects more than just the price tag. It influences:

  • Cost of living — Higher HST/PST provinces see higher consumer prices.

  • Business decisions — Companies consider tax structure when choosing where to operate.

  • Government revenue — PST provinces maintain more control over their tax base.

  • Interprovincial shopping habits — Border communities often feel the impact of tax differences.

Understanding these variations helps Canadians make informed decisions, whether they’re budgeting, running a business, or simply curious about how their province compares.