Canada Sales Tax Calculator
For figuring out Canadian sales taxes, an online calculator is a tool you should look out for. For the chosen province, federal, provincial, and harmonized taxes are automatically calculated.
What Is Sale Tax?
When certain goods and services are sold, the government receives money from consumers in the form of a sales tax. Sales tax is normally deducted by the seller as soon as the buyer makes a transaction.
Most countries refer to sales tax as the Goods and Services Tax (GST) or Value Added Tax (VAT). Sales taxes are only collected in some countries at the point of sale.
Therefore the prices that are offered for goods and services include the pre-tax cost. In other countries, the indicated costs reflect the final after-tax amounts, which also take into account the sales tax.
In some provinces in Canada, not all goods and services are subjected to sales tax. This means there are some goods and services that are not taxed by the provincial government.
There are additional tax surcharges in many provinces as well. It is typical in the hospitality sector for restaurants and hotels to impose tax rates that are greater than the applicable state sales tax.
For information on anticipated sales tax rates and prospective tax surcharge rates, contact your state and locality.
History Of Sales Tax In Canada
Prime Minister Brian Mulroney’s Progressive Conservative administration in 1989 suggested enacting a 9% national sales tax, which was supported by Michael Wilson, the government’s finance minister.
Every province in Canada at the time, with the exception of Alberta, had its own retail-level provincial sales tax.
The 13.5% Manufacturers’ Sales Tax (MST), which the federal government levied on manufactured goods at the wholesale level, was intended to be replaced by the national sales tax.

According to Mulroney, the MST made it more difficult for the industrial sector to compete internationally and was the reason the GST was put into place.
Manufacturers were concerned about the tax because it would make them less competitive on a worldwide scale. Additionally, the 11% Federal Telecommunications Tax was replaced with the GST.
The use of the GST was highly divisive. Despite claims that the GST was revenue-neutral compared to the MST, a sizable portion of Canadians opposed the tax Other parliamentary parties rejected the idea, in addition to three Progressive Conservative lawmakers who eventually quit the caucus, Alex Kindy, Pat Nowlan, and David Kilgour.
The tax was not approved by the Senate, which is governed by liberals. Mulroney took an exceptional step by temporarily increasing the number of senators by eight by employing a little-known constitutional provision (Section 26 of the Constitution Act, 1867).
This happened To end the deadlock and give the Progressive Conservatives a majority in the upper chamber. The opposition mounted a filibuster in retaliation, further delaying the legislation.
The tax was still divisive even after it was reduced to 7% when it was finally implemented. Anger also stemmed from what the tax covered. In addition, it was argued that Canada would become more competitive if the MST were eliminated in the long run.
The government made it known that the tax was necessary to replace one that was levied on manufacturers but was not disclosed to consumers.
After the MST was substituted with the GST, prices did not fall as quickly as some might have expected.
However, advocates of the GST have emphasized that in Canada’s market economy, the MST’s substitution could only be expected to have an effect on pricing over time and not right away. Despite the protests, the tax went into force on January 1st, 1991.
The tax went into effect on January 1st, 1991 despite the objections.

How Sales Tax Work In Canada
Sales taxes are often charged on the sale of tangible personal property or its importation into a province as well as a select group of services, for use or consumption in that province.
These taxes are comparable to the PST systems employed by the various provincial governments in Canada.
In general, buyers must pay PST at the time of purchase, unless they are buying the items to resell them or a certain exception exists. These include production equipment, books, and basic groceries in some provinces.
Despite the fact that PST is a tax that the buyer must pay, provincial vendors must normally register to collect and return PST to the relevant provincial government. In most cases, people who bring taxable products into a province for personal use are required to self-assess and pay the relevant tax directly to the province.
All PST provinces (excluding PEI) have signed collection agreements with the federal government where the items are imported from outside of Canada and cleared via Canadian Customs.
In accordance with the agreements governing PST collection, the federal government will levy PST on taxable importations made for non-commercial purposes when the imported products are also subject to GST.
People who are not subject to the PST collection agreements (i.e., the majority of enterprises) must make sure that they correctly self-assess PST when necessary.
How To Calculate Sales Tax In Canada
Thinking of adding tax? The sales tax calculator is designed to show GST/HST, PST, RST, and QST. Simply choose your province or territory, the amount, and whether you want to pay taxes on it or not.
You can use the calculator to see whether additional taxes need to be paid on that sum. If the pre-tax amount has already been applied, you can still compute it.
Canada’s sales tax is more complicated than that of many other countries. Varying provinces impose taxes at different rates, as opposed to a single national rate that is incorporated into prices.
As a result, the location has a crucial role in how taxes are added.
But that is not the only difficulty; prices that are advertised to consumers frequently do not include the sales tax. This can conceal the true cost of acquiring a good or service.
To calculate the tax rate you need to do is to multiply the cost of your product or service by the tax rate. If the tax rate is given as a percentage, divide the result by 100 to get the tax rate in decimal form. Use this number to do further multiplications.
- Determine the list price and the tax rate.
- Dividing the tax percentage by 100 will give you the tax rate in decimal form.
- Multiply the decimal tax rate by the list price to determine the tax.
- For the total price, add the list price to the tax amount.
What Is GST?
GST, or goods and services tax, is a tax. Since 2008, this federal value-added tax has been at a fixed rate of 5%. It is used for the majority of Canadian goods and services.
Prices displayed to consumers are often shown before GST. On receipts or invoices, this good and sales tax are specified separately.
For instance, in Alberta, your total would be $105.00 if you spent $100 on a purchase. Alberta, Nunavut, the Northwest Territories, and Yukon have only the GST as their additional sales tax.
What Is PST?
Provincial sale tax is referred to as PST. They are administered by the respective provincial administrations.
In British Columbia and Saskatchewan, it is mostly used. Provincial sales taxes are known as QST and RST in Quebec and Manitoba, respectively.
PST is charged at 7% in BC and 6% in Manitoba. Accordingly, the overall sales taxes are 12% and 11%, respectively.
The $100 item that would have cost you $105 in Alberta would cost you $112 in British Columbia and $110.00 in Manitoba.
The PST is typically not included in the prices of products and services offered to consumers, just like it is with the GST tax. On invoices or receipts, the taxes are broken out separately.
What Is QST?
The provincial sales tax in Québec is known as the Québec Sales Tax (QST). The QST is levied and collected on the majority of products and services, just like the GST, and once it has been paid, it can be reclaimed on your QST return. There is a 9.975% QST rate.
When a Québec-based company’s total global taxable supply of goods and services in a particular calendar quarter or the four prior consecutive calendar quarters exceeds $30,000, it must register for the QST.
If a business’s taxable supplies of goods and services total more than $30,000 throughout 12 months in Québec, the company, regardless of location, must register for QST.
Any person, personal trust, or partnership consisting solely of people is not permitted to register for the QST if they operate a business without a reasonable expectation of profit or provide goods or services that are not subject to tax.
What Is HST?
Harmonized sales tax is referred to as HST. This “harmonized tax” really combines the PST and GST. As only one tax needs to be applied and kept track of, HST makes sales tax administration simpler for companies operating in jurisdictions that implement it.
HST is used in the following provinces in Canada:
- Ontario
- Prince Edward Island
- Nova Scotia
- New Brunswick
- Newfoundland and Labrador
You must apply for and acquire an HST tax number as a business owner if your company earns more than $30,000.00 annually. You are now obligated to charge, gather, and remit Harmonized Sales Tax from your customers or clients as necessary.
A monthly, quarterly, or annual reporting and filing time is yours to choose from. Similar to the GST/HST, there is a small supplier exception; if your small business generates less than $30,000 in annual revenue, you are exempt from GST/HST registration requirements. If you so choose, you may voluntarily apply.
The Canada Revenue Agency no longer considers your company to be a small supplier if it generates more than $30,000 in revenue, and you are then required to open an HST account. Once you apply to open an HST account, the HST is calculated as of that date onward.
Value Added Tax
A variety of goods and services are subject to the sales or consumption tax known as value-added tax, or VAT. Technically, from the time the raw ingredients are purchased until the product is sold to you, VAT is assessed and collected on it at every stage of manufacturing.
It has a convoluted mechanism. Every business or person engaged in a product’s supply, distribution, and sales chain is supposed to contribute to its VAT in some way.
A real sales tax, in contrast, only levies the tax when goods or services are sold to customers.
Sales Tax Vs Value Added Tax
Sales taxes can be imposed at one or more phases of manufacturing or distribution, among other varied ways. It may also be assessed at the wholesale level, the manufacturing level, or at many levels of production or distribution, but not at all.
Most states in the United States and a few provinces in Canada impose retail sales taxes, which are single-stage taxes. It indicates that the tax liability only becomes apparent at the time of the transaction.
The goods and services tax (GST), sometimes known as the value-added tax (VAT), is a multi-stage tax levied at every stage of the distribution or manufacturing chain.
Because earlier parties in the chain paid less VAT when they completed the transaction, the client is ultimately responsible for paying all taxes.
Consequently, only the “added value” that each production chain member generates and ultimately transfers to the final customer is subject to VAT.
The tax paid is the same when retail sales tax is applied at a 10% rate. However, it is only evaluated when a buyer makes a purchase.
Check out these instances where 10% VAT is used:
- A wheat farmer sold wheat to a baker for 30 cents. The baker pays 33 cents, and the farmer sends the government an additional 3 cents in the form of VAT.
- A loaf of bread made from wheat is sold by the baker for 70 cents to a nearby store. The price for the grocery store is 77 cents plus 7 cents for VAT. The baker still had to pay the government 4 cents after the farmer paid the final 3 cents.
- Last but not least, the grocer charges a customer $1 for the loaf of bread. The supermarket gives the government 3 cents out of the $1.10 the consumer pays, which is the basic price plus the VAT.
In contrast to a national sales tax, a VAT has benefits. It is a lot simpler to track. Every stage of manufacturing is subject to a known, precise tax.
A sales tax makes it challenging to allocate funds to particular manufacturing phases because the total amount is rendered after the sale.
Goods and services that are not subject to taxes
There are a few exclusions even though GST/HST is generally applied to most goods and services. Some are subject to varied rates of taxation, while others are exempt. Numerous goods and services are either zero-rated or tax-exempt in Canada.
Zero-rated services consist of:
- Farming equipment and agricultural products
- Products for feminine hygiene
- Products for feminine Basic grocery items
- Prescription drugs
- Medical devices
Exempt services consist of:
- Financial and tax services
- Child care
- Medical and dental services
- Ferry service
- Rent
- Travel Insurance
- Municipal transit
For consumers, products and services that are tax-free are not functionally equivalent. In other words, consumers do not pay taxes on goods or services.
When supplies are zero-rated, you may be entitled to input tax credits if you paid GST/HST on the goods and services used to provide the supplies (ITC). If you think you might be entitled to these tax benefits, consult a tax or accounting professional.
Goods And Services That Are Subject To Various Tax Levels
In Canada, taxes on housing are frequently governed by various laws. For newly constructed or significantly renovated housing under $450,000, GST/HST rebates may be available.
A $400,000 property in Ontario might be eligible for $6,300 in GST and $24,000 in HST rebates. Province-specific regulations exist, and they are outside the purview of this page. It is wise to review your province’s regulations if you plan to shop from home.
There are a lot of exclusions. These consist of:
- In Alberta and Manitoba, there are 4% and 5% lodging and hotel room taxes, respectively.
- In Quebec, books are subject to GST but not QST. Thus, a total 5% tax is applied to books.
- 10% tax on alcoholic beverages in Saskatchewan.
Sales Tax Deduction
Paying sales taxes can be a headache, especially if you’re getting ready to purchase an expensive item like a car. However, there might be a solution to lower your tax obligation.
You can either deduct the state, local, and international income taxes you paid throughout the year, or you can do one of two other actions to obtain some tax benefits.
Additionally, there are some limitations. As a general rule, compare your sales tax payment against your state, municipal, and international income tax payment to determine which option is best for you.
If you decide to do so, you have two options regarding how to go about doing it:
- You can either preserve all of your actual sales tax bills and invoices, or
- Using the CRA’s sales tax spreadsheet and tables, for instance, will help you determine how much tax you paid.
If you want to learn more, you can go to the Canada Revenue Agency’s (CRA) official website, where you can obtain all pertinent materials.
You might also like…
Item Amount (Max. $100,000,000)
Price is
Province
Result
You will in taxes. Therefore, the total amount paid is .
Canada Sales Tax Calculator
For figuring out Canadian sales taxes, an online calculator is a tool you should look out for. For the chosen province, federal, provincial, and harmonized taxes are automatically calculated.
What Is Sale Tax?
When certain goods and services are sold, the government receives money from consumers in the form of a sales tax. Sales tax is normally deducted by the seller as soon as the buyer makes a transaction.
Most countries refer to sales tax as the Goods and Services Tax (GST) or Value Added Tax (VAT). Sales taxes are only collected in some countries at the point of sale.
Therefore the prices that are offered for goods and services include the pre-tax cost. In other countries, the indicated costs reflect the final after-tax amounts, which also take into account the sales tax.
In some provinces in Canada, not all goods and services are subjected to sales tax. This means there are some goods and services that are not taxed by the provincial government.
There are additional tax surcharges in many provinces as well. It is typical in the hospitality sector for restaurants and hotels to impose tax rates that are greater than the applicable state sales tax.
For information on anticipated sales tax rates and prospective tax surcharge rates, contact your state and locality.
History Of Sales Tax In Canada
Prime Minister Brian Mulroney’s Progressive Conservative administration in 1989 suggested enacting a 9% national sales tax, which was supported by Michael Wilson, the government’s finance minister.
Every province in Canada at the time, with the exception of Alberta, had its own retail-level provincial sales tax.
The 13.5% Manufacturers’ Sales Tax (MST), which the federal government levied on manufactured goods at the wholesale level, was intended to be replaced by the national sales tax.

According to Mulroney, the MST made it more difficult for the industrial sector to compete internationally and was the reason the GST was put into place.
Manufacturers were concerned about the tax because it would make them less competitive on a worldwide scale. Additionally, the 11% Federal Telecommunications Tax was replaced with the GST.
The use of the GST was highly divisive. Despite claims that the GST was revenue-neutral compared to the MST, a sizable portion of Canadians opposed the tax Other parliamentary parties rejected the idea, in addition to three Progressive Conservative lawmakers who eventually quit the caucus, Alex Kindy, Pat Nowlan, and David Kilgour.
The tax was not approved by the Senate, which is governed by liberals. Mulroney took an exceptional step by temporarily increasing the number of senators by eight by employing a little-known constitutional provision (Section 26 of the Constitution Act, 1867).
This happened To end the deadlock and give the Progressive Conservatives a majority in the upper chamber. The opposition mounted a filibuster in retaliation, further delaying the legislation.
The tax was still divisive even after it was reduced to 7% when it was finally implemented. Anger also stemmed from what the tax covered. In addition, it was argued that Canada would become more competitive if the MST were eliminated in the long run.
The government made it known that the tax was necessary to replace one that was levied on manufacturers but was not disclosed to consumers.
After the MST was substituted with the GST, prices did not fall as quickly as some might have expected.
However, advocates of the GST have emphasized that in Canada’s market economy, the MST’s substitution could only be expected to have an effect on pricing over time and not right away. Despite the protests, the tax went into force on January 1st, 1991.
The tax went into effect on January 1st, 1991 despite the objections.

How Sales Tax Work In Canada
Sales taxes are often charged on the sale of tangible personal property or its importation into a province as well as a select group of services, for use or consumption in that province.
These taxes are comparable to the PST systems employed by the various provincial governments in Canada.
In general, buyers must pay PST at the time of purchase, unless they are buying the items to resell them or a certain exception exists. These include production equipment, books, and basic groceries in some provinces.
Despite the fact that PST is a tax that the buyer must pay, provincial vendors must normally register to collect and return PST to the relevant provincial government. In most cases, people who bring taxable products into a province for personal use are required to self-assess and pay the relevant tax directly to the province.
All PST provinces (excluding PEI) have signed collection agreements with the federal government where the items are imported from outside of Canada and cleared via Canadian Customs.
In accordance with the agreements governing PST collection, the federal government will levy PST on taxable importations made for non-commercial purposes when the imported products are also subject to GST.
People who are not subject to the PST collection agreements (i.e., the majority of enterprises) must make sure that they correctly self-assess PST when necessary.
How To Calculate Sales Tax In Canada
Thinking of adding tax? The sales tax calculator is designed to show GST/HST, PST, RST, and QST. Simply choose your province or territory, the amount, and whether you want to pay taxes on it or not.
You can use the calculator to see whether additional taxes need to be paid on that sum. If the pre-tax amount has already been applied, you can still compute it.
Canada’s sales tax is more complicated than that of many other countries. Varying provinces impose taxes at different rates, as opposed to a single national rate that is incorporated into prices.
As a result, the location has a crucial role in how taxes are added.
But that is not the only difficulty; prices that are advertised to consumers frequently do not include the sales tax. This can conceal the true cost of acquiring a good or service.
To calculate the tax rate you need to do is to multiply the cost of your product or service by the tax rate. If the tax rate is given as a percentage, divide the result by 100 to get the tax rate in decimal form. Use this number to do further multiplications.
- Determine the list price and the tax rate.
- Dividing the tax percentage by 100 will give you the tax rate in decimal form.
- Multiply the decimal tax rate by the list price to determine the tax.
- For the total price, add the list price to the tax amount.
What Is GST?
GST, or goods and services tax, is a tax. Since 2008, this federal value-added tax has been at a fixed rate of 5%. It is used for the majority of Canadian goods and services.
Prices displayed to consumers are often shown before GST. On receipts or invoices, this good and sales tax are specified separately.
For instance, in Alberta, your total would be $105.00 if you spent $100 on a purchase. Alberta, Nunavut, the Northwest Territories, and Yukon have only the GST as their additional sales tax.
What Is PST?
Provincial sale tax is referred to as PST. They are administered by the respective provincial administrations.
In British Columbia and Saskatchewan, it is mostly used. Provincial sales taxes are known as QST and RST in Quebec and Manitoba, respectively.
PST is charged at 7% in BC and 6% in Manitoba. Accordingly, the overall sales taxes are 12% and 11%, respectively.
The $100 item that would have cost you $105 in Alberta would cost you $112 in British Columbia and $110.00 in Manitoba.
The PST is typically not included in the prices of products and services offered to consumers, just like it is with the GST tax. On invoices or receipts, the taxes are broken out separately.
What Is QST?
The provincial sales tax in Québec is known as the Québec Sales Tax (QST). The QST is levied and collected on the majority of products and services, just like the GST, and once it has been paid, it can be reclaimed on your QST return. There is a 9.975% QST rate.
When a Québec-based company’s total global taxable supply of goods and services in a particular calendar quarter or the four prior consecutive calendar quarters exceeds $30,000, it must register for the QST.
If a business’s taxable supplies of goods and services total more than $30,000 throughout 12 months in Québec, the company, regardless of location, must register for QST.
Any person, personal trust, or partnership consisting solely of people is not permitted to register for the QST if they operate a business without a reasonable expectation of profit or provide goods or services that are not subject to tax.
What Is HST?
Harmonized sales tax is referred to as HST. This “harmonized tax” really combines the PST and GST. As only one tax needs to be applied and kept track of, HST makes sales tax administration simpler for companies operating in jurisdictions that implement it.
HST is used in the following provinces in Canada:
- Ontario
- Prince Edward Island
- Nova Scotia
- New Brunswick
- Newfoundland and Labrador
You must apply for and acquire an HST tax number as a business owner if your company earns more than $30,000.00 annually. You are now obligated to charge, gather, and remit Harmonized Sales Tax from your customers or clients as necessary.
A monthly, quarterly, or annual reporting and filing time is yours to choose from. Similar to the GST/HST, there is a small supplier exception; if your small business generates less than $30,000 in annual revenue, you are exempt from GST/HST registration requirements. If you so choose, you may voluntarily apply.
The Canada Revenue Agency no longer considers your company to be a small supplier if it generates more than $30,000 in revenue, and you are then required to open an HST account. Once you apply to open an HST account, the HST is calculated as of that date onward.
Value Added Tax
A variety of goods and services are subject to the sales or consumption tax known as value-added tax, or VAT. Technically, from the time the raw ingredients are purchased until the product is sold to you, VAT is assessed and collected on it at every stage of manufacturing.
It has a convoluted mechanism. Every business or person engaged in a product’s supply, distribution, and sales chain is supposed to contribute to its VAT in some way.
A real sales tax, in contrast, only levies the tax when goods or services are sold to customers.
Sales Tax Vs Value Added Tax
Sales taxes can be imposed at one or more phases of manufacturing or distribution, among other varied ways. It may also be assessed at the wholesale level, the manufacturing level, or at many levels of production or distribution, but not at all.
Most states in the United States and a few provinces in Canada impose retail sales taxes, which are single-stage taxes. It indicates that the tax liability only becomes apparent at the time of the transaction.
The goods and services tax (GST), sometimes known as the value-added tax (VAT), is a multi-stage tax levied at every stage of the distribution or manufacturing chain.
Because earlier parties in the chain paid less VAT when they completed the transaction, the client is ultimately responsible for paying all taxes.
Consequently, only the “added value” that each production chain member generates and ultimately transfers to the final customer is subject to VAT.
The tax paid is the same when retail sales tax is applied at a 10% rate. However, it is only evaluated when a buyer makes a purchase.
Check out these instances where 10% VAT is used:
- A wheat farmer sold wheat to a baker for 30 cents. The baker pays 33 cents, and the farmer sends the government an additional 3 cents in the form of VAT.
- A loaf of bread made from wheat is sold by the baker for 70 cents to a nearby store. The price for the grocery store is 77 cents plus 7 cents for VAT. The baker still had to pay the government 4 cents after the farmer paid the final 3 cents.
- Last but not least, the grocer charges a customer $1 for the loaf of bread. The supermarket gives the government 3 cents out of the $1.10 the consumer pays, which is the basic price plus the VAT.
In contrast to a national sales tax, a VAT has benefits. It is a lot simpler to track. Every stage of manufacturing is subject to a known, precise tax.
A sales tax makes it challenging to allocate funds to particular manufacturing phases because the total amount is rendered after the sale.
Goods and services that are not subject to taxes
There are a few exclusions even though GST/HST is generally applied to most goods and services. Some are subject to varied rates of taxation, while others are exempt. Numerous goods and services are either zero-rated or tax-exempt in Canada.
Zero-rated services consist of:
- Farming equipment and agricultural products
- Products for feminine hygiene
- Products for feminine Basic grocery items
- Prescription drugs
- Medical devices
Exempt services consist of:
- Financial and tax services
- Child care
- Medical and dental services
- Ferry service
- Rent
- Travel Insurance
- Municipal transit
For consumers, products and services that are tax-free are not functionally equivalent. In other words, consumers do not pay taxes on goods or services.
When supplies are zero-rated, you may be entitled to input tax credits if you paid GST/HST on the goods and services used to provide the supplies (ITC). If you think you might be entitled to these tax benefits, consult a tax or accounting professional.
Goods And Services That Are Subject To Various Tax Levels
In Canada, taxes on housing are frequently governed by various laws. For newly constructed or significantly renovated housing under $450,000, GST/HST rebates may be available.
A $400,000 property in Ontario might be eligible for $6,300 in GST and $24,000 in HST rebates. Province-specific regulations exist, and they are outside the purview of this page. It is wise to review your province’s regulations if you plan to shop from home.
There are a lot of exclusions. These consist of:
- In Alberta and Manitoba, there are 4% and 5% lodging and hotel room taxes, respectively.
- In Quebec, books are subject to GST but not QST. Thus, a total 5% tax is applied to books.
- 10% tax on alcoholic beverages in Saskatchewan.
Sales Tax Deduction
Paying sales taxes can be a headache, especially if you’re getting ready to purchase an expensive item like a car. However, there might be a solution to lower your tax obligation.
You can either deduct the state, local, and international income taxes you paid throughout the year, or you can do one of two other actions to obtain some tax benefits.
Additionally, there are some limitations. As a general rule, compare your sales tax payment against your state, municipal, and international income tax payment to determine which option is best for you.
If you decide to do so, you have two options regarding how to go about doing it:
- You can either preserve all of your actual sales tax bills and invoices, or
- Using the CRA’s sales tax spreadsheet and tables, for instance, will help you determine how much tax you paid.
If you want to learn more, you can go to the Canada Revenue Agency’s (CRA) official website, where you can obtain all pertinent materials.
You might also like…
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