Canadian Federal and Provincial Sales Tax Rates

Posted on July 7, 2010 by Cyndee Todgham Cherniak

I have been asked many times in the last week (primarily by businesses that sell goods and deliver the goods across Canada) for the Canadian/provincial sales tax rates. Here they are:

 Province/Territory

PST Rate

GST/HST

Rate

GST Included

In PST Tax Base?

Combined Rate

British Columbia

N/A

12%

N/A

12%

Alberta

Nil

5%

N/A

5%

Saskatchewan

5%

5%

No

10%

Manitoba

7%

5%

No

12%

Ontario

N/A

13%

N/A

13%

Quebec

7.5%

5%

Yes

12.875%

New Brunswick

N/A

13%

N/A

13%

Newfoundland

N/A

13%

N/A

13%

Nova Scotia

N/A

15%

N/A

15%

Prince Edward Island

10%

5%

Yes

15.5%

Northwest Territories

Nil

5%

N/A

5%

Yukon

Nil

5%

N/A

5%

 

Notes that may help:

  • British Columbia – 12% HST (5% federal component and 7% provincial component)
  • Ontario – 13% HST (5% federal component and 8% provincial component)
  • New Brunswick and Newfoundland – 13% HST (5% federal component and 8% provincial component)
  • Nova Scotia – 15% HST (5% federal component and 10% provincial component)
  • Quebec – QST rate will rise to 8.5% on January 1, 2011 and to 9.5% on January 1, 2012

Comments:

1. It is important to note that the tax rates can change (often in the Spring at the time budgets are tabled).

2. If a supplier is registered for GST purposes, they will have to charge (1) GST in respect of taxable sales in Canada and (2) HST at the applicable HST rate if the HST place of supply rules deem a supply to be made in a participating province.

3. The rules may be different on when a vendor must register for provincial sales tax purposes (in Quebec, Prince Edward island, Manitoba or Saskatchewan) and charge provincial sales tax on a sale of goods in a province or on services in respect of tangible personal property.

NOTE: I acknowledge that assistance of Allan Gelkopf in the preparation of this piece.  I wrote an article on The HST Blog and Allan and I modified the article for publication by the Canadian Bar Associaiton, National Sales Tax, Customs and Trade Section in the newsletter.  I have modified it again for this post.
 

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This Blog/Web Site is made available by Cyndee Todgham Cherniak and Cyndee Todgham Cherniak Professional Corporation for educational purposes only as well as to give you general information and a general understanding of the law, not to provide specific legal advice. By using this blog site you understand that there is no attorney client relationship between you and the Blog/Web Site publisher. The Blog/Web Site should not be used as a substitute for competent legal advice from a licensed professional attorney in your province.

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