HST (Harmonized Sales Tax)
HST combines the 5% federal GST with a provincial portion into a single harmonized tax, simplifying compliance for businesses operating in multiple provinces. The total HST rate is 13% in Ontario and 15% in Nova Scotia, New Brunswick, Newfoundland & Labrador, and Prince Edward Island.
The HST is administered by the CRA on behalf of participating provinces. Businesses file a single HST return covering both the federal and provincial components. This is simpler than in non-HST provinces, where businesses may need to register and file separately for PST or QST.
HST applies to most goods and services, with the same exemptions and zero-rated categories as the GST. Some provinces provide point-of-sale rebates on certain items (e.g. Ontario rebates the provincial portion on children's clothing and prepared food under $4). Low- and modest-income Canadians receive the GST/HST credit to offset the cost.
Related Terms
GST (Goods and Services Tax)
The GST is a 5% federal value-added tax applied to most goods and services sold in Canada.
PST (Provincial Sales Tax)
PST is a provincial sales tax levied separately from the federal GST.
QST (Quebec Sales Tax)
The QST is Quebec's provincial sales tax at 9.
GST/HST Credit
The GST/HST credit is a tax-free quarterly payment from the CRA designed to help individuals and families with low and modest incomes offset the GST/HST they pay on everyday purchases.