Sales tax in 2026: how it works, with a worked example

Questions people ask

What is the sales tax in each province in 2026?

Ontario 13% HST; New Brunswick, Newfoundland and Labrador and PEI 15% HST; Nova Scotia 14% HST; Quebec 5% GST plus 9.975% QST (14.975%); British Columbia 5% GST plus 7% PST (12%); Manitoba 5% GST plus 7% RST (12%); Saskatchewan 5% GST plus 6% PST (11%); Alberta and the three territories 5% GST only.

How do I remove HST from a total?

Divide by 1 plus the rate. A $113 total in Ontario is $113 ÷ 1.13 = $100 before tax, so the HST was $13. The calculator's tax-included mode does this for any province.

Is QST charged on top of GST?

Not since 2013. QST is calculated on the price before GST, so the combined rate is 14.975%, not 15.47%.

What is exempt from GST/HST?

Basic groceries, prescription drugs, most medical devices, residential rent, used homes, most health, dental and childcare services, and financial services. Restaurant meals, snacks, clothing, electronics and most services are taxable.

Do I charge HST on sales to other provinces?

For goods shipped to a customer, charge the rate of the province where the goods are delivered (place-of-supply rules). A Toronto business shipping to Alberta charges 5% GST; to Nova Scotia 14% HST.

When does a business have to register?

Once taxable revenue exceeds $30,000 in a single calendar quarter or over the last four quarters. Below that you are a small supplier and registration is optional. Quebec businesses also register for QST with Revenu Québec.

Which province's tax do I charge a customer in another province?

For most services and goods delivered to the customer, the customer's province: an Ontario business invoicing an Alberta client charges 5% GST, and invoicing a Nova Scotia client charges 14% HST. Provincial sales tax in BC, Saskatchewan and Manitoba is charged only if you are registered for it there.

Do I charge GST/HST to customers outside Canada?

No. Exports of goods and most services to non-residents are zero-rated: you charge 0% but remain a registrant and still claim input tax credits on your expenses. Keep proof that the customer is outside Canada.

When do I have to register for GST/HST?

When your taxable sales exceed $30,000 in a single calendar quarter or over the last four consecutive quarters. Below that you are a small supplier and may not charge tax, but you can register voluntarily to recover the GST/HST you pay on expenses.

Is the quick method worth it?

For service businesses with few taxable expenses, usually yes: you remit a flat percentage of tax-included sales (8.8% in Ontario, 3.6% in GST-only provinces) instead of tracking every input tax credit, and keep the difference. It is available under $400,000 of annual sales and is elected with form GST74. The calculator compares it with the regular method.