Comprehensive Guide to GST, PST, & QST in Canada (2026)
Table of Contents
The Three Types of Sales Tax
Canada's tax system is a mosaic of federal and provincial levies. Unlike many countries with a uniform Value Added Tax (VAT), Canada operates under a dual-level system where you might see one, two, or three different acronyms on your receipt depending on where you are.
1. GST (Goods and Services Tax)
The 5% federal tax applies to most goods and services across all of Canada. It is administered by the Canada Revenue Agency (CRA). In provinces like Alberta, Nunavut, Northwest Territories, and Yukon, this is often the only sales tax consumers see.
2. PST (Provincial Sales Tax) / RST (Retail Sales Tax)
Several provinces have chosen to keep their local tax separate from the federal system. British Columbia (7% PST), Saskatchewan (6% PST), and Manitoba (7% RST) charge this tax on top of the GST. While GST is broad-based, PST often has specific exemptions; for example, in BC, safety equipment and children's clothing are exempt from PST but not GST.
3. QST (Quebec Sales Tax)
Quebec has a unique system with the QST, currently set at 9.975%. Combined with the 5% GST, the total effective rate is 14.975%. Although it is administered separately by Revenu Québec, it mostly follows the same rules and base as the GST.
Detailed Provincial Breakdown (Non-Harmonized)
Here is how the tax math works in provinces that do not use HST.
| Province | GST Rate | Provincial Rate | Total Tax | Notes |
|---|---|---|---|---|
| Alberta | 5% | 0% | 5% | No PST. Only GST applies. |
| British Columbia | 5% | 7% (PST) | 12% | PST is calculated on the pre-GST price. |
| Saskatchewan | 5% | 6% (PST) | 11% | Expanded PST base recently. |
| Manitoba | 5% | 7% (RST) | 12% | Called Retail Sales Tax (RST). |
| Quebec | 5% | 9.975% (QST) | 14.975% | Administered by Revenu Québec. |
Understanding Quebec Sales Tax (QST)
Quebec is unique. While it has harmonized its tax base significantly with the federal GST, it retains separate administration.
- Historical Note: Before 2013, QST was charged on top of the GST (tax-on-tax). This is no longer the case. QST is now charged on the sale price excluding GST.
- Revenu Québec: Businesses in Quebec register with Revenu Québec for both GST and QST. Revenu Québec administers the GST on behalf of the federal government within the province.
- Books: Printed books are exempt from the provincial QST portion, meaning you only pay the 5% GST on book purchases in Quebec.
PST Rules for BC, Manitoba & Saskatchewan
The Provincial Sales Tax (PST) in these western provinces behaves more like a traditional sales tax. It is often not recoverable by businesses (unlike GST/HST Input Tax Credits), which can result in "tax cascading" in the supply chain.
PST Registration: If you sell goods to customers in these provinces, you may need to register for their specific PST accounts, separate from your federal GST/HST number.
Business Registration & Obligations
If you run a business in a non-harmonized province (like BC or Quebec), your invoicing is slightly more complex than in HST provinces.
Your invoice must clearly show:
- The subtotal (net price).
- The GST amount (5%) identified as "GST".
- The PST/QST amount identified separately (e.g., "PST" or "QST").
- The total amount payable.
- Your GST number AND your provincial PST/QST registration number.
Example Invoice (BC):
Service: $100.00
GST (5%): $5.00
PST (7%): $7.00
Total: $112.00