GST PST and HST in Canada: rates and registration guide

Published Tuesday 6 October 2026

Table of contents

• What are goods and services tax (GST), harmonized 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 GST, HST, and PST compliance with Xero
• FAQs on GST, HST, and PST for small businesses

Key takeaways

• Check which tax system your province uses: HST provinces charge one combined rate of 13% to 15%, while PST provinces require separate federal and provincial registration
• Register for GST/HST once taxable supplies pass $30,000 in one calendar quarter or over four consecutive quarters. Below that, registering lets you claim input tax credits.
• Apply place of supply rules by charging the rate for the province where your customer receives the goods or service
• File and pay your GST/HST returns electronically to meet Canada Revenue Agency (CRA) requirements, and track the deadlines for your reporting period to avoid penalties

What are goods and services tax (GST), harmonized 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, a 5% federal goods and services tax applied nationwide
• PST, a provincial sales tax that select provinces charge at varying rates
• HST, a single harmonized sales tax used in five provinces that have combined their provincial sales tax with the GST

Here’s a closer look at each one.

What is GST (goods and services tax)?

The 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 CRA.

Some of those provinces add their own tax on top of GST.

What is PST (provincial sales tax)?

Provincial sales tax (PST) is a provincial tax charged in addition to GST in several provinces that don’t use HST. Each province sets its own rate and decides which items are taxable.

Here are the 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)

Five other provinces fold their provincial tax into GST instead.

What is HST (harmonized sales tax)?

Harmonized sales tax (HST) combines the 5% federal GST with provincial sales tax into a single tax. You charge one rate instead of two separate taxes, which makes collecting simpler. 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%
• Prince Edward Island: 15%

Nova Scotia’s HST dropped from 15% to 14% on April 1, 2025, as shown in the CRA’s GST/HST rates table. Four other provinces keep GST and provincial tax separate.

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

The rest of Canada charges GST alone.

Territories and provinces with GST only

In Alberta and the three territories, you charge only the 5% GST, with no provincial sales tax on top:

• Alberta
• Northwest Territories
• Nunavut
• Yukon

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.

Here’s how to work out HST in Ontario at 13%:

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

For GST plus PST in British Columbia, follow these steps:

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

Each example uses the rate for the province where your customer is.

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 Nova Scotia’s 14% HST instead of Alberta’s 5% GST.

Common exemptions and zero-rated items

Goods and services fall into different tax categories. Knowing these categories helps you charge the correct amount.

Zero-rated items are taxed at 0%, and you can still claim input tax credits (ITCs) on related costs. Common examples include:

• Basic groceries like milk and bread
• Prescription medications
• Medical devices
• Exports

Exempt items carry no tax, and you can’t claim ITCs on related costs. Common examples include:

• 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 once your worldwide taxable supplies go over $30,000 in a single calendar quarter or over four consecutive calendar quarters. At that point you’re no longer a small supplier, and you have 29 days to register.

This applies to most business types. 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.

Here’s how the small supplier test affects your registration:

• Register if you have more than $30,000 in taxable supplies in a single calendar quarter or over four consecutive calendar quarters
• Choose whether to register if you’re a small supplier at or under $30,000
• Claim ITCs on business expenses once you’re registered

Tax categories determine how much tax to charge:

• Taxable items carry the full tax rate, which you remit to the CRA, and you can claim ITCs on business expenses
• Zero-rated items carry 0% tax but still count as taxable, so you can claim ITCs on related expenses; basic groceries are a common example
• Exempt items carry no tax, and you can’t claim ITCs on them

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

How to register for GST/HST

Here’s how to complete your GST/HST registration:

1. Register online using the Business Registration Online program
2. Receive the nine-digit business number ending with “RT” that’s assigned to your entity during registration
3. Start charging the appropriate tax rates to your customers
4. File regular tax returns with 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, separately from your business income tax return. Since January 2024, all registrants except charities and selected listed financial institutions must file electronically for periods ending in 2024 and later.

You can file your return in one of these ways:

• Electronic filing, which is mandatory for most registrants and has the fastest processing time
• Telefile, a phone-based filing system for eligible businesses
• Paper filing, a 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?

Your filing deadline depends on your reporting period. The CRA assigns your reporting period based on your annual taxable supplies:

• Annual filing if your taxable supplies are $1,500,000 or less
• Quarterly filing if they’re more than $1,500,000 up to $6,000,000
• Monthly filing if they’re more than $6,000,000

You can choose to file more often than your assigned period. Once your reporting period is set, these deadlines apply:

• Monthly and quarterly filers file and pay within one month of the period end
• Most annual filers file and pay within three months of their fiscal year-end
• Sole proprietors with a December 31 fiscal year-end and business income file by June 15 and pay by April 30

See CRA reporting requirements for details. 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:

• Pay through My Business Account, the online portal, for the fastest processing
• Pay directly from your business bank account with online banking
• Mail a cheque to “Receiver General for Canada” for payments under $10,000
• Pay in person at a bank or financial institution 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 GST, HST, and PST compliance with Xero

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.

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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 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, and in others they’re combined into HST.

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

GST is the 5% federal tax applied nationwide, and PST is a provincial tax some provinces charge on top of it. HST is a single tax that combines the federal and provincial portions, and five provinces use it.

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

No, you’re a small supplier if your worldwide taxable supplies stay at $30,000 or less in a calendar quarter and over four consecutive quarters. Registering is optional, and it lets you claim ITCs within four years of when you could first claim them.

What happens if I charge the wrong tax rate?

Undercharging means you pay the difference to the CRA, while overcharging means you refund your customer or remit the excess to the CRA. Either way, correct the error promptly and keep a record of the adjustment.

Can I claim input tax credits on PST?

No, PST is a retail sales tax paid by the final consumer, so you can’t recover it through ITCs. Once you’re registered, you can claim ITCs only on the GST/HST you pay for eligible business expenses.