Quick Reference: 2026 Canadian Tax Rates by Province
Complete 2026 Canadian Sales Tax Rates
The tax you charge on invoices depends on where your customer is located. Here's every province and territory:
| Province/Territory | GST | PST/HST | Total Tax | Type |
|---|---|---|---|---|
| Alberta | 5% | 0% | 5% | GST only |
| British Columbia | 5% | 7% | 12% | GST + PST |
| Manitoba | 5% | 7% | 12% | GST + PST |
| New Brunswick | 15% | 15% | HST | |
| Newfoundland & Labrador | 15% | 15% | HST | |
| Northwest Territories | 5% | 0% | 5% | GST only |
| Nova Scotia | 14% | 14% | HST | |
| Nunavut | 5% | 0% | 5% | GST only |
| Ontario | 13% | 13% | HST | |
| Prince Edward Island | 15% | 15% | HST | |
| Quebec | 5% | 9.975%* | 14.975% | GST + QST |
| Saskatchewan | 5% | 6% | 11% | GST + PST |
| Yukon | 5% | 0% | 5% | GST only |
Important: Quebec QST Calculation
Since 2013, Quebec's QST (9.975%) is calculated on the subtotal only, the same base as GST. Both taxes are applied separately to the subtotal. The combined effective rate is 14.975%. See the Quebec example below.
How to Calculate GST (5% Provinces)
For provinces with GST only (Alberta, NWT, Nunavut, Yukon), the calculation is straightforward:
GST Formula
GST Amount = Subtotal × 0.05
Total = Subtotal + GST Amount
Example: Invoice to Alberta Customer
Consulting services: $1,500.00
How to Calculate HST (Combined Tax Provinces)
HST provinces combine federal GST and provincial tax into one rate. Use a single calculation:
HST Formula
HST Amount = Subtotal × HST Rate
Total = Subtotal + HST Amount
Example: Invoice to Ontario Customer (13% HST)
Web design services: $2,000.00
Example: Invoice to Nova Scotia Customer (14% HST)
Photography services: $800.00
How to Calculate GST + PST (BC, Manitoba, Saskatchewan)
These provinces charge GST and PST separately. Both are calculated on the subtotal:
GST + PST Formula
GST Amount = Subtotal × 0.05
PST Amount = Subtotal × PST Rate
Total = Subtotal + GST + PST
Example: Invoice to BC Customer (5% GST + 7% PST)
Marketing services: $3,000.00
How to Calculate GST + QST (Quebec) - Special Rules
Quebec is unique: GST and QST are both charged separately, each calculated on the subtotal. The combined effective rate is 14.975% (5% + 9.975%).
Quebec GST + QST Formula
GST Amount = Subtotal × 0.05
QST Amount = Subtotal × 0.09975
Total = Subtotal + GST + QST
Example: Invoice to Quebec Customer
Graphic design services: $1,000.00
Common Quebec Mistake
Don't use the outdated pre-2013 compound formula! Since 2013, QST is calculated on the subtotal only, not on (Subtotal + GST). Using the old compound method would give you $104.74 instead of the correct $99.75 - overcharging by $4.99 on a $1,000 invoice.
How to Calculate GST From Total (Reverse Calculation)
Sometimes you need to work backwards - you know the total amount including tax and need to find the original subtotal and tax amount. This is called a "reverse" or "back" calculation.
Reverse GST Formula (5%)
Subtotal = Total ÷ 1.05
GST Amount = Total - Subtotal
Example: Finding GST from a $525 Total
You paid $525 total (including 5% GST). What was the subtotal and GST?
Reverse Calculation for All Tax Rates
| Province/Rate | Divide By | Example ($1,000 total) |
|---|---|---|
| Alberta, Territories (5% GST) | 1.05 | $952.38 subtotal + $47.62 GST |
| Saskatchewan (11% GST+PST) | 1.11 | $900.90 subtotal + $99.10 tax |
| BC, Manitoba (12% GST+PST) | 1.12 | $892.86 subtotal + $107.14 tax |
| Ontario (13% HST) | 1.13 | $884.96 subtotal + $115.04 HST |
| New Brunswick, NL, PEI (15% HST) | 1.15 | $869.57 subtotal + $130.43 HST |
| Nova Scotia (14% HST) | 1.14 | $877.19 subtotal + $122.81 HST |
| Quebec (14.975% GST+QST) | 1.14975 | $869.78 subtotal + $130.22 tax |
Common GST Calculation Mistakes to Avoid
Wrong Province Rate
Using YOUR province's rate instead of your CUSTOMER'S province. Tax is based on where the customer is located (place of supply), not where you are.
Quebec QST Error
Using the outdated pre-2013 compound formula. Since 2013, Quebec QST is calculated on the subtotal only, not on (Subtotal + GST). Using the old formula overcharges by ~$5 per $1,000.
Rounding Errors
Rounding mid-calculation instead of at the end. Calculate the full tax amount first, then round to 2 decimal places for the final invoice.
Tax on Tax-Exempt Items
Charging GST/HST on exempt items like basic groceries, prescription drugs, or certain medical services. Know what's taxable in your industry.
Charging Without Registration
Charging GST/HST without being registered. You cannot charge and collect tax unless you have a GST/HST number from CRA.
Not Showing Tax Separately
CRA requires tax amounts to be shown separately on invoices. Don't just include tax in the price - break it out on a separate line.
Do I Need to Charge GST/HST?
Small Supplier Threshold
You don't need to register for or charge GST/HST if:
- Your total taxable revenue is $30,000 or less in any four consecutive calendar quarters, AND
- Your total taxable revenue is $30,000 or less in any single calendar quarter
When You Must Register
You must register for GST/HST within 29 days if:
- You exceed $30,000 in taxable supplies in a single calendar quarter, OR
- You exceed $30,000 over four consecutive calendar quarters
Voluntary Registration
Even if under $30,000, you may want to register voluntarily to:
- Claim Input Tax Credits (ITCs) on business purchases
- Appear more professional to clients
- Avoid back-registration if you exceed the threshold
What Must Appear on a CRA-Ready Invoice?
For invoices over $30, the CRA requires:
- Your business name or legal name
- Your GST/HST registration number
- Invoice date
- Customer's name or trading name
- Brief description of goods or services
- Total amount paid or payable
- Tax amounts (GST/HST/PST/QST) shown separately OR statement that tax is included
For invoices over $150, you also need:
- Customer's address
- Payment terms (e.g., Net 30)
- Amount of tax charged on each taxable item
Skip the Math - Let iBill Calculate Automatically
iBill.ca automatically calculates GST, HST, PST, and QST based on your customer's province. No more manual calculations or formula lookups.
Create Free InvoiceGST Calculation Examples by Industry
Here's how GST/HST calculation works for common industries and professions:
Freelance Designer (Ontario)
Logo Design Project
Services: Logo design, brand guidelines, business card design
IT Consultant (Alberta)
Monthly Retainer Invoice
Services: IT support and consulting
Contractor (British Columbia)
Home Renovation Invoice
Services: Kitchen renovation labour and materials
Marketing Agency (Quebec)
Social Media Campaign
Services: Social media management and ad spend
Frequently Asked Questions
What if my customer is in a different province than me?
You charge tax based on the place of supply - usually where your customer is located or where the service is performed. For most services delivered remotely, charge the tax rate for your customer's province.
Do I charge tax on services provided to US clients?
Generally, no. Services provided to customers outside Canada are typically zero-rated (0% tax). However, keep documentation proving the customer is outside Canada.
How do I handle tax on invoices with multiple line items?
Calculate tax on the subtotal of all taxable items. If some items are tax-exempt (like basic groceries or medical services), calculate tax only on the taxable portion.
When do I remit GST/HST to the CRA?
Filing frequency depends on your annual revenue:
- Under $1.5 million: Annual filing
- $1.5 million to $6 million: Quarterly filing
- Over $6 million: Monthly filing
How do I calculate GST on a receipt that includes tax?
Use the reverse calculation: divide the total by 1.05 (for 5% GST) to get the subtotal. The difference is the GST amount. For example, a $105 total ÷ 1.05 = $100 subtotal, so GST was $5.00.
Is GST the same as HST?
Not exactly. GST (Goods and Services Tax) is the federal 5% tax. HST (Harmonized Sales Tax) combines federal GST with provincial tax into a single rate (13% in Ontario, 14% in Nova Scotia, 15% in New Brunswick, Newfoundland and Labrador, and PEI). In HST provinces, you charge one combined rate instead of separate taxes.
Do I charge GST on tips or gratuities?
No. Voluntary tips and gratuities are not subject to GST/HST because they are not considered payment for a supply. However, mandatory service charges (like automatic 18% for large groups) are taxable.
How do I handle GST on deposits or partial payments?
GST/HST is charged when the invoice is issued, not when payment is received. If you invoice $1,000 with $130 HST and the client pays a $500 deposit, you still owe $130 HST to CRA (proportionally over your filing period).
Can I claim GST back on business expenses (Input Tax Credits)?
Yes, if you're GST/HST registered. You can claim back the GST/HST you paid on business expenses by claiming Input Tax Credits (ITCs) when you file your GST/HST return. This reduces your net tax owing to CRA.
What's the penalty for GST calculation errors?
CRA charges interest on underpayments (currently around 5-6% annually). Repeated or significant errors can result in penalties of 5% of the balance owing plus 1% per month. Using invoicing software like iBill helps prevent calculation errors.