Canada VAT / Sales Tax

Canada levies a federal Goods and Services Tax (GST) at 5% on most goods and services. Five provinces (Ontario, New Brunswick, Newfoundland and Labrador, Nova Scotia, and Prince Edward Island) have harmonized their provincial sales taxes with the GST to form the Harmonized Sales Tax (HST), with combined rates of 13% to 15%. Quebec operates its own Quebec Sales Tax (QST) at 9.975% in addition to GST, while British Columbia, Saskatchewan, and Manitoba levy separate Provincial Sales Taxes (PST) at rates of 6% to 7%. Alberta, the Northwest Territories, Nunavut, and Yukon have no provincial sales tax, so only the 5% GST applies. Many essential goods and services are GST/HST-exempt or zero-rated, including basic groceries, prescription medications, and most health and dental services.