June 18, 2026 5 min read
How GST/HST Is Calculated in Canada (2026 Rates)
How GST, HST, PST and QST work across every province in 2026 — the combined rate table, how to add tax to a price, extract tax from a total, and reverse-calculate the pre-tax amount.
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Sales tax in Canada looks simple — until you cross a provincial border. The federal Goods and Services Tax (GST) is the same everywhere, but each province either folds it into a single Harmonized Sales Tax (HST), layers its own Provincial Sales Tax (PST) on top, or runs a parallel Québec Sales Tax (QST). The arithmetic is identical; only the rate changes. Here is exactly how it is calculated in 2026.
The Three Sales-Tax Systems
Canada uses three overlapping systems:
- GST only — the 5% federal tax applies, with no provincial sales tax. Used in Alberta and the three territories.
- HST — the federal and provincial portions are blended into one harmonized rate collected by the CRA. Used in Ontario and Atlantic Canada.
- GST + PST (or QST) — two separate taxes appear on the receipt. Used in British Columbia, Saskatchewan, Manitoba, and Quebec.
Whichever system applies, the rate is a flat percentage of the selling price (with limited exceptions for zero-rated and exempt supplies such as basic groceries, most health care, and residential rent).
2026 Combined Rates by Province
| Province / Territory | Combined rate | Components |
|---|---|---|
| Alberta | 5% | GST 5% |
| British Columbia | 12% | GST 5% + PST 7% |
| Manitoba | 12% | GST 5% + PST 7% |
| New Brunswick | 15% | HST 15% |
| Newfoundland and Labrador | 15% | HST 15% |
| Northwest Territories | 5% | GST 5% |
| Nova Scotia | 14% | HST 14% (5% federal + 9% provincial) |
| Nunavut | 5% | GST 5% |
| Ontario | 13% | HST 13% |
| Prince Edward Island | 15% | HST 15% |
| Quebec | 14.975% | GST 5% + QST 9.975% |
| Saskatchewan | 11% | GST 5% + PST 6% |
| Yukon | 5% | GST 5% |
Nova Scotia is the rate to watch. As of April 1, 2025, Nova Scotia cut its HST from 15% to 14% — the federal 5% plus a reduced 9% provincial portion. Any content or invoice still showing 15% for Nova Scotia is out of date.
Which Rate Applies — Place of Supply
The rate is set by where the customer receives the good or service (the CRA’s “place of supply” rules), not where the seller is located. A Toronto business shipping goods to a customer in Halifax charges Nova Scotia’s 14% HST, not Ontario’s 13%. For most digital and remote services, place of supply follows the customer’s address.
Calculating Tax — The Three Operations
1. Adding tax to a price
Multiply the pre-tax price by the combined rate, then add it back:
Tax = Price × Rate Total = Price × (1 + Rate)
A $200 item in Ontario (13%): tax = $200 × 0.13 = $26.00; total = $226.00. The same item in Alberta (5%): tax = $10.00; total = $210.00.
2. Extracting tax from a tax-included total
When a total already includes tax, divide out the rate to find the tax portion:
Tax included = Total × Rate ÷ (1 + Rate)
A $226.00 tax-included total in Ontario: $226.00 × 0.13 ÷ 1.13 = $26.00 of HST, leaving a $200.00 pre-tax base.
3. Reverse-calculating the pre-tax price
To strip tax out and recover the original price:
Pre-tax price = Total ÷ (1 + Rate)
A $113.00 total in Ontario becomes $113.00 ÷ 1.13 = $100.00 before tax.
GST + PST provinces — watch the stacking
In British Columbia, Saskatchewan, and Manitoba, GST and PST are both calculated on the pre-tax price — they do not compound on each other. A $100 purchase in BC carries $5 GST and $7 PST for a $112 total. Quebec works the same way: QST is applied to the pre-tax price (not on top of the GST), so a $100 sale carries $5 GST plus $9.975 QST = $114.975.
Input Tax Credits — Why Registrants Track Both Directions
If you are a GST/HST registrant, you charge tax on sales and recover the GST/HST you pay on business purchases as input tax credits (ITCs). That makes the “extract tax” operation a daily task — you constantly back the tax portion out of tax-included supplier invoices to claim your ITCs. Net tax remitted to the CRA is GST/HST collected minus ITCs claimed.
Crossing the $30,000 small-supplier threshold in any four consecutive quarters means you must register and start charging. See GST/HST registration for the consumer-side credit, which is a separate program for individuals.
Worked Example — A $1,000 Invoice, Three Provinces
| Province | Rate | Tax | Total |
|---|---|---|---|
| Ontario | 13% | $130.00 | $1,130.00 |
| Nova Scotia | 14% | $140.00 | $1,140.00 |
| Quebec | 5% GST + 9.975% QST | $50.00 + $99.75 | $1,149.75 |
| Alberta | 5% | $50.00 | $1,050.00 |
The same $1,000 of work costs the customer anywhere from $1,050 to $1,150 depending only on where it is delivered.
Key Takeaways
- GST is 5% federally and never changes; the spread between provinces comes entirely from the provincial portion.
- HST provinces: Ontario 13%, Nova Scotia 14% (cut from 15% on April 1, 2025), and New Brunswick / Newfoundland and Labrador / Prince Edward Island at 15%.
- GST + PST/QST provinces: BC 12%, Manitoba 12%, Saskatchewan 11%, Quebec 14.975% — two separate lines, both on the pre-tax price.
- GST-only: Alberta and the three territories at 5%.
- Add tax by multiplying by
(1 + rate); extract tax withTotal × Rate ÷ (1 + Rate); recover the pre-tax price withTotal ÷ (1 + Rate).
Run any of these in seconds with the GST/HST calculator, which handles add, extract, and reverse modes for every provincial rate.
Sources
Primary sources
Use our calculators to apply these concepts to your own income. Tax information is for general guidance only — consult a CPA for advice specific to your situation.
Tax rates and thresholds sourced from the Canada Revenue Agency (CRA). Last verified for the 2025 tax year.