Sales taxes in Canada
In Canada, there are two types of sales taxes levied. These are :
- Provincial sales taxes, levied by the provinces.
- Goods and Services Tax /Harmonized Sales Tax, a value-added tax levied by the federal government. The GST applies nationally. The HST includes the provincial portion of the sales tax but is administered by the Canada Revenue Agency and is applied under the same legislation as the GST. The HST is in effect in Ontario, New Brunswick, Newfoundland and Labrador, Nova Scotia and Prince Edward Island.
The territories of Yukon, Northwest Territories, and Nunavut have no territorial sales taxes, so only the GST is collected. The three northern jurisdictions are heavily subsidized by the federal government, and its residents receive some additional tax concessions due to the high cost of living in the north.
Provincial sales taxes
Separate provincial sales taxes are collected in the provinces of British Columbia, Saskatchewan, Manitoba and Quebec. Prince Edward Island switched to a HST on April 1, 2013, the same date that British Columbia reverted to a separate GST/PST after their adoption of a HST in 2010 was rejected in a referendum. Goods to which the tax is applied vary by province, as does the rate. In all provinces where the provincial sales tax is collected, the tax is imposed on the sale price without GST. Of the provincial sales taxes, only the QST are value-added; the rest are cascading taxes.| Province | Type | Prov. rate | Total Tax Rate | Notes |
| Alberta | GST | 0 | 5 | There is a 4% tax on lodging and 4% tax on hotel room fees. |
| British Columbia | GST + PST | 7 | 12 | Reverted to a separate GST/PST on April 1, 2013, with a PST of 7%, after their adoption of a HST in 2010 was rejected in a referendum. |
| Manitoba | GST + RST | 7 | 12 | The RST was increased one point to 8% on July 1, 2013. It reverted to 7% as of July 1, 2019 and is planned to drop to 6% as of July 1, 2020. There is a 5% tax on lodging and 5% tax on hotel room fees. |
| New Brunswick | HST | 10 | 15 | The HST was increased two points to 10% with an overall tax of 15% on July 1, 2016. |
| Newfoundland and Labrador | HST | 10 | 15 | The HST was increased two points to 10% with an overall tax of 15% on July 1, 2016. |
| Northwest Territories | GST | 0 | 5 | |
| Nova Scotia | HST | 10 | 15 | Rates were meant to be reduced to 14 and 13% on July 1, 2014 and July 1, 2015 respectively. However, the government has stated that the province cannot afford reductions. |
| Nunavut | GST | 0 | 5 | |
| Ontario | HST | 8 | 13 | |
| Prince Edward Island | HST | 10 | 15 | The HST was increased one point to 15% on October 1, 2016. |
| Quebec | GST + QST | 9.975 | 14.975 | Books are taxed at 5.0%. There is an additional tax on tourist lodgings such as hotels which varies by region, ranging from $2 per night to 3.5%. |
| Saskatchewan | GST + PST | 6 | 11 | The 6% rate is effective for goods and services effective March 23, 2017. Effective April 1, 2017, New Homes, restaurant meals and other prepared food and beverages are subject to PST. There is a separate 10% liquor consumption tax. PST is not applicable for any exempt business in Lloydminster. |
| Yukon | GST | 0 | 5 |