Sales tax is the tax imposed by the government on purchased goods and services. In Canada, the amount of sales tax varies between provinces, as they each calculate this tax differently.
Some provinces combine the federal Goods and Services Tax (GST) and Provincial Sales Tax (PST), while others base their calculation solely on the Harmonized Sales Tax (HST).
This article covers how sales tax in Canada is computed based on your province or territory.
Key Takeaways
- The provinces with the lowest sales tax include Yukon, the Northwest Territories, and Alberta. Each of them only charges a 5% GST, bypassing the PST rate completely.
- The highest sales tax rate in Canada is 15%. The provinces that charge this tax rate include New Brunswick, Newfoundland and Labrador, Nova Scotia, and Prince Edward Island.
Sales Tax By Province In Canada
These are the up-to-date sales tax amounts of each province and territory in Canada.
| Province | Sales Tax Type | GST | PST | HST | Total Tax Rate |
| Alberta | GST only | 5% | 5% | ||
| British Columbia | PST+ GST | 5% | 7% | 12% | |
| Manitoba | PST+ GST | 5% | 7% | 12% | |
| New Brunswick | HST | 15% | 15% | ||
| Newfoundland and Labrador | HST | 15% | 15% | ||
| Northwest Territories | GST only | 5% | 5% | ||
| Nova Scotia | HST | 15% | 15% | ||
| Nunavut | GST | 5% | 5% | ||
| Ontario | HST | 13% | 13% | ||
| Prince Edward Island | HST | 15% | 15% | ||
| Quebec | GST + *QST | 5% | *9.975% | 14.975% | |
| Saskatchewan | PST+ GST | 5% | 6% | 11% | |
| Yukon | GST | 5% | 5% |
Which Province Has The Lowest Sales Tax Rate?
The provinces and territories with the lowest sales tax rates in Canada include Yukon, the Northwest Territories, and Alberta. All of these regions have a total tax rate of only 5%, as they only charge GST and not PST.
Of the provinces with the lowest sales tax rate, Alberta has the most central location. Hence, if you’re seeking relocation opportunities where you can minimize your day-to-day taxes, Alberta is the province to consider.
Which Province Has The Highest Sales Tax Rate?
The provinces with the highest sales tax rate are New Brunswick, Newfoundland and Labrador, Nova Scotia, and Prince Edward Island. These regions impose a 15% sales tax on goods and services.
FAQs
Yes, all Canadian provinces have sales tax. How much exactly each province charges, though, varies.
There is an Alberta sales tax. However, it only charges the federal Goods and Services Tax (GST) and not the provincial sales tax (PST). As a result, Alberta has the lowest sales tax in Canada, which is 5% GST.
One of the main reasons why Alberta’s tax is so low is that it has a thriving oil and gas industry. These industries’ royalty payments and production taxes provide the provincial government with substantial revenue, which offsets the need for higher taxation.
Canada’s value-added tax (VAT) is commonly referred to as the federal GST, which is a 5% tax rate. All provinces are required to pay VAT, but some provincial governments have combined the GST and PST into a harmonized sales tax (HST), making it seem like a single tax.
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