GST PST and HST in Canada: rates and registration guide

Published Monday 20 April 2026

Table of contents

• What are goods and services tax (GST), harmonised sales tax (HST) and provincial sales tax (PST)?
• Current GST/HST/PST rates by province (2026)
• How to calculate GST/HST/PST for your sales
• Do you need to register and collect these taxes?
• How to register for GST/HST
• How to file your GST/HST/PST return and pay your tax
• Simplify your tax compliance with cloud accounting
• FAQs on GST, HST, and PST for small businesses

Key takeaways

• Recognize which tax system applies to your province: businesses in HST provinces charge one combined rate (13–15%), while businesses in PST provinces must register separately with both federal and provincial tax authorities to collect and remit two distinct taxes.
• Register for GST/HST as soon as your business earns $30,000 or more annually, and consider registering voluntarily even below that threshold so you can claim Input Tax Credits (ITCs) to recover the GST/HST you pay on eligible business expenses.
• Apply the place of supply rules when charging tax, meaning you charge the tax rate for where your customer receives the goods or service, not where your business is located.
• File and pay your GST/HST returns electronically to meet CRA requirements, and track your deadlines based on your filing frequency, whether monthly, quarterly, or annual, to avoid penalties for late remittance.

What are goods and services tax (GST), harmonised sales tax (HST) and provincial sales tax (PST)?

GST, PST, and HST are consumption taxes you collect from customers when they buy goods or services. You charge these taxes based on purchase amounts, then remit them to the government.

Canada uses three main sales tax types:

• GST (Goods and Services Tax): a 5% federal tax applied nationwide
• PST (Provincial Sales Tax): a provincial tax charged in select provinces at varying rates
• HST (Harmonized Sales Tax): a single tax combining federal GST with provincial tax, as five provinces have harmonized their provincial sales tax with the GST

What is GST (goods and services tax)?

Goods and Services Tax (GST) is a 5% federal tax applied to most goods and services sold in Canada. You charge this rate in provinces and territories that don't use HST, then remit the collected tax to the Canada Revenue Agency (CRA).

What is PST (provincial sales tax)?

Provincial Sales Tax (PST) is a provincial tax charged in addition to GST in provinces that don't use HST. Each province sets its own rate and determines which items are taxable.

Current PST rates by province:

• British Columbia: 7% PST
• Saskatchewan: 6% PST
• Manitoba: 7% RST (Retail Sales Tax)
• Quebec: 9.975% QST (Quebec Sales Tax)

What is HST (harmonized sales tax)?

Harmonized Sales Tax (HST) combines the 5% federal GST with provincial sales tax into a single tax. This simplifies collection because you charge one rate instead of two separate taxes. HST rates range from 13% to 15% depending on the province.

Now that you understand the three tax types, here are the current rates across Canada.

Current GST/HST/PST rates by province (2026)

The tax rate you charge depends on where your customer receives the goods or services. Here's how sales taxes break down across Canada.

Provinces using HST

Five provinces use HST, which combines federal GST with provincial tax into a single rate. Charge these rates when your customer is in:

• Ontario: 13%
• New Brunswick: 15%
• Newfoundland and Labrador: 15%
• Nova Scotia: 14% (Note: The rate decreased to 14% effective 1 April 2025)
• Prince Edward Island: 15%

Provinces using GST plus PST

In these provinces, you charge both 5% GST and the provincial tax separately. You must register with each provincial government to collect and remit PST.

• British Columbia: 5% GST + 7% PST = 12% total
• Saskatchewan: 5% GST + 6% PST = 11% total
• Manitoba: 5% GST + 7% RST = 12% total
• Quebec: 5% GST + 9.975% QST = 14.975% total

Territories and provinces with GST only

These provinces and territories have no provincial sales tax. You charge only the 5% GST:

• Alberta: 5% GST only
• Northwest Territories: 5% GST only
• Nunavut: 5% GST only
• Yukon: 5% GST only

Understanding rates is just the first step. Next, you need to know how to calculate the taxes on your sales.

How to calculate GST/HST/PST for your sales

Calculate sales tax by multiplying your sale amount by the applicable tax rate. Accounting software can automate this process and reduce calculation errors.

Here are the formulas for calculating each tax type.

Basic calculation methods

Use these examples to understand how each calculation works.

HST calculation example (Ontario):

1. Start with the sale amount: $100
2. Calculate the tax: $100 × 0.13 = $13
3. Add to get the total invoice: $113

GST + PST calculation example (British Columbia):

1. Start with the sale amount: $100
2. Calculate GST: $100 × 0.05 = $5
3. Calculate PST: $100 × 0.07 = $7
4. Add to get the total invoice: $112

Which rate to charge based on customer location

Place of supply rules determine which province's tax rate applies. Charge the tax rate where your customer receives the goods or where you perform the service.

For example, if you're based in Alberta but ship a product to Nova Scotia, you charge the Nova Scotia HST rate of 15%, not Alberta's 5% GST.

Common exemptions and zero-rated items

Not all goods and services are taxed the same way. Understanding these categories helps you charge the correct amount.

Zero-rated items (0% tax, ITCs claimable):

• basic groceries like milk, bread, and vegetables
• prescription medications
• medical devices
• exports

Exempt items (no tax, no ITCs):

• health and dental services
• childcare services
• most financial services
• residential rent

Check with the CRA for a complete list of zero-rated and exempt items in your industry.

Do you need to register and collect these taxes?

You must register for GST/HST if your business earns $30,000 or more in annual revenue. This applies to most business types, although if you're a self-employed taxi or commercial ride-sharing driver, you have to register even if your gross income is under $30,000.

Registration requirements:

• Mandatory: businesses earning $30,000 or more annually must register
• Voluntary: businesses earning under $30,000 can choose to register
• Benefit of registering: you can claim Input Tax Credits on business expenses

Tax categories determine how much tax to charge:

• Taxable items: charge full tax rates and remit to CRA. You can claim Input Tax Credits (ITCs) on business expenses.
• Zero-rated items: you charge 0% tax, but items are still considered taxable. Basic groceries are a common example. You can claim ITCs on related expenses.
• Exempt items: no tax charged or collected. You cannot claim ITCs on these items.

Once you determine you need to register, follow these steps.

How to register for GST/HST

Here's how to complete your registration.

GST/HST registration process:

1. Register online: use the Business Registration Online program
2. Receive your business number: your entity will be assigned a 9-digit business number ending with "RT" during registration
3. Start collecting: charge appropriate tax rates to customers
4. File returns: submit regular tax returns to the CRA

Create a My Business Account with the CRA to track payments, view tax details, and file through GST/HST Netfile.

After you're registered and collecting taxes, you'll need to file returns and remit what you've collected.

How to file your GST/HST/PST return and pay your tax

You must file GST/HST returns regularly with the CRA. Since January 2024, all registrants except charities and selected listed financial institutions must file electronically for periods ending in 2024 and later.

Filing methods:

• Electronic filing: mandatory for most registrants; fastest processing time
• Telefile: phone-based filing system for eligible businesses
• Paper filing: traditional mail-in option for those exempt from electronic filing

Check CRA requirements to confirm which method applies to your business.

The CRA publishes instructions for completing your return.

Knowing when to file is just as important as knowing how.

When is your return due?

Filing deadlines depend on your annual revenue and reporting period:

• Monthly filers: file and pay within one month of period end
• Quarterly filers: file and pay within one month of period end
• Annual filers (non-December year-end): file and pay within three months of period end
• Annual filers (December 31 year-end): file by 15 June; your final payment deadline is 30 April if you have business income for the year. See CRA reporting requirements for details.

Higher revenue typically means more frequent filing requirements.

Once you've calculated what you owe, you need to submit payment.

How to pay your GST/HST

Since January 2024, you must pay electronically if your payment is $10,000 or more. Choose from these payment methods:

• My Business Account: pay through the online portal for fastest processing
• Online banking: pay directly from your business bank account
• Cheque: mail to "Receiver General for Canada" for payments under $10,000
• In-person: pay at banks or financial institutions for payments under $10,000

If you operate in provinces with separate PST, you have additional filing obligations.

Provincial PST filing requirements

Provinces with separate PST have their own registration, filing, and payment requirements. You must register directly with each provincial tax authority where you collect PST.

Contact your provincial tax authority or accountant for specific PST filing deadlines and payment methods in your province.

Managing all these tax requirements can be time-consuming. Technology can help.

Simplify your tax compliance with cloud accounting

Cloud accounting software can simplify GST, HST, and PST management. Xero automatically applies the correct tax rates to your invoices based on your customer's location and generates accurate GST/HST reports in a few clicks.

With real-time financial data, you can track what you've collected, prepare returns with confidence, and stay compliant. Spend less time on bookkeeping and more time running your business.

Ready to simplify your tax compliance? Get one month free today.

FAQs on GST, HST, and PST for small businesses

Small business owners often have questions about Canadian sales taxes. Here are answers to the most common ones.

Is GST the same as PST?

No, GST and PST are different taxes. GST is a 5% federal tax charged across Canada, while PST is a provincial tax set by individual provinces. In some provinces, you charge both separately. In others, they're combined into HST.

What's the difference between GST, PST, and HST?

• GST is the federal Goods and Services Tax at 5%, applied nationwide
• PST is a Provincial Sales Tax charged in addition to GST in some provinces
• HST is a single Harmonized Sales Tax combining federal and provincial portions, used in five provinces

Do I need to register if I make less than $30,000?

No, registration is optional if you earn $30,000 or less annually. You're considered a "small supplier" and don't have to register for a GST/HST account.

However, voluntary registration lets you claim Input Tax Credits (ITCs) on the GST/HST you pay for business expenses. You must claim ITCs within four years of when you could first claim them.

What happens if I charge the wrong tax rate?

If you charge too little tax, you're responsible for paying the difference to the CRA. If you charge too much, you must refund the excess to your customer or remit it to the CRA. Correct errors promptly and keep records of any adjustments. Cloud accounting software can help prevent mistakes by automatically applying the correct rates.

Can I claim input tax credits on PST?

No, you cannot claim Input Tax Credits for PST paid on business purchases. PST is a retail sales tax paid by the final consumer and is not recoverable.

GST/HST works differently. If you're registered, you can claim ITCs to recover the GST/HST you pay on eligible business expenses.