Canadian Sales Tax Rates (as at October 1, 2016)

Canadian Sales Tax Rates Chart
As at October 1, 2016

 

Province/Territory Provincial Sales Tax GST/HST Rate GST Included in PST Tax Base Combined Rate
British Columbia 7% 5% N/A 12%
Alberta Nil 5% N/A 5%
Saskatchewan 5% 5% No 10%
Manitoba 8% 5% No 13%
Ontario N/A 13% N/A 13%
Quebec 9.975% 5% N/A 14.975%
New Brunswick N/A 15% N/A 15%
Nova Scotia N/A 15% N/A 15%
Newfoundland/Labrador N/A 15% N/A 15%
Prince Edward Island N/A 15% Yes 15%
Northwest Territories Nil 5% N/A 5%
Yukon Nil 5% N/A 5%
Nunavut Nil 5% N/A 5%

The HST rate for Newfoundland/Labrador increased to 15% from 13% effective July 1, 2016.

The HST rate for New Brunswick increased to 15% from 13% effective July 1, 2016.

The HST rate for Prince Edward Island increased to 15% effective October 1, 2016.

The ITC recapture rate in Ontario decreased to 50% as of July 1, 2016.

Steps To Take

  1. Are you charging the correct amount of sales tax?
    • Sales departments/accounts receivable departments that have programmed HST-included pricing will need to update the sales tax rates in their systems.
    • Even companies that calculate sales tax separately will need to make sure that computer programs have been updated.
  2. Are you paying the correct amount of sales tax?
    • Payroll departments will need to review invoices in the months following the sales tax increases to ensure that they are being charged the correct amount of sales tax.
    • This means not paying the higher rate for property and services provided before July 1, 2016 and paying the higher rate, if applicable, after July 1, 2016.
  3. Are you claiming the correct amount of ITCs?
    • The finance department will need to make sure that computerized programs that break out the amount of HST payable on invoices have been updated to reflect the higher HST rates.
  4. Are Ontario businesses not giving too much back?
    • The ITC recapture rate in Ontario has decreased to 50% from 75%.  This means the amount of ITCs that companies can claim may have increased for some large businesses.
    • Have you updated your computerized records to reduce the recapture rate?

For more information, please contact Cyndee Todgham Cherniak at 416-307-4168 or at cyndee@lexsage.com. Alternatively, visit www.lexsage.com.

Canadian Sales Tax Rates (as at January 1, 2016)

Canadian Sales Tax Rates Chart
As at January 1, 2016

 

Province/Territory

Provincial Sales Tax

GST/HST Rate

GST Included in PST Tax Base

Combined Rate

British Columbia

7%
 

5%
 

N/A

12%

Alberta

Nil

5%

N/A

5%

Saskatchewan

5%

5%

No

10%

Manitoba

8%

5%

No

13%

Ontario

N/A

13%

N/A

13%

Quebec

9.975%

5%

N/A

14.975%

New Brunswick

N/A

13%

N/A

13%

Nova Scotia

N/A

15%

N/A

15%

Newfoundland/Labrador

N/A

13%

N/A

13%

Prince Edward Island

9%

5%

Yes

14%

Northwest Territories

Nil

5%

N/A

5%

Yukon

Nil

5%

N/A

5%

Nunavut

Nil

5%

N/A

5%



 

Canadian Sales Tax Rates (as at May 1, 2012)

Canadian Sales Tax Rates Chart
As at May 1, 2012

Province/Territory

Provincial Sales Tax

GST/HST Rate

GST Included in PST Tax Base

Combined Rate

British Columbia

N/A[1]

12%[2]

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

9.5%[3]

5%[4]

Yes[5]

14.98%

New Brunswick

N/A

13%

N/A

13%

Nova Scotia

N/A

15%

N/A

15%

Newfoundland/Labrador

N/A

13%

N/A

13%

Prince Edward Island

10%[6]

5%[7]

Yes[8]

15.5%[9]

Northwest Territories

Nil

5%

N/A

5%

Yukon

Nil

5%

N/A

5%

Nunavut

Nil

5%

N/A

5%



[1] British Columbia will reinstate provincial sales tax on April 1, 2013 at a rate of 7%

[2] On April 1, 2013, the GST/HST rate will decrease to 5% because British Columbia is de-harmonizing

[3] Quebec will harmonize with GST on January 1, 2013. The proposed amended QST rate is 9.975%

[4] On January 1, 2013, the Amended QST, GST rate will be 14.975%

[5] Starting January 1, 2013 there will no longer be tax on tax

[6] Prince Edward Island will harmonize with GST on April 1, 2013. The proposed rate will be 14%.

[7] Prince Edward Island will harmonize with the GST on April 1, 2013 and impose HST at the rate of 14%

[8] Starting on April 1, 2013, there will no longer be tax on tax

[9] Will reduce to 14% on April 1, 2013