Sales Taxes in Canada
In Canada, there are retail sales taxes that apply when a taxable good or service is purchased. Most goods and services are taxable –except for the following:
- most agricultural products and farm livestock
- prescription drugs
- basic groceries
- many medical devices, such as hearing aids and artificial teeth
- products marketed exclusively for feminine hygiene purposes
The Goods and Services Tax (GST) is a 5% tax imposed on the supply of goods and services that are purchased in Canada.
The Provincial Services Tax (PST) is a tax imposed by provinces on goods and services purchased in most provinces.
The Harmonized Sales Tax (HST) is a consumption tax in Canada. It is used in provinces where both the federal goods and services tax (GST) and the regional provincial sales tax (PST) have been combined into a single tax.
|Sales Taxes by Province or Territory (2016)|
|Province or Territory||Type||Provincial Tax||Federal Tax||Total|
|Newfoundland and Labrador||HST||10%||5%||15%|
|Newfoundland and Labrador||HST||8%||5%||13%|
|Prince Edward Island||HST||10%||5%||15%|
|Québec||GST + QST||9.98%||5%||14.98%|
|Saskatchewan||GST + PST||5%||5%||10%|
|Source: Government of Canada|