Key takeaways
- PST is a provincial sales tax charged on top of 5% GST in British Columbia (7%), Manitoba (7% RST) and Saskatchewan (6%); Quebec charges 9.975% QST.
- Five provinces use a single HST instead: 13% in Ontario, 14% in Nova Scotia and 15% in New Brunswick, Newfoundland and Labrador and Prince Edward Island.
- Businesses register for GST/HST above C$30,000 of taxable sales; non-resident sellers of digital services use the simplified regime above C$30,000 in 12 months.
In short: In Canada, PST is the Provincial Sales Tax that some provinces charge on top of the 5% federal Goods and Services Tax (GST). British Columbia and Manitoba charge 7%, Saskatchewan 6%, and Quebec charges its own 9.975% QST. Five provinces instead combine GST and provincial tax into one Harmonized Sales Tax (HST) of 13% to 15%.
Updated October 2026: We rechecked every rate against the CRA, Revenu Québec and the British Columbia, Manitoba and Saskatchewan governments. British Columbia paused its planned PST on professional services on 18 September 2026, but its other 1 October 2026 changes (cable TV, phone services, clothing repair) went ahead.
Canadian sales tax can be hard to follow. Different taxes apply in different provinces and territories, and they work quite differently to US sales tax. This guide explains GST, HST and PST, the rate in each province, and when you must register. We cover selling in Canada in more detail in Selling Online in Canada: Everything You Need to Know.
Note: in this guide, PST means Provincial Sales Tax. It has nothing to do with Pacific Standard Time (PST), the time zone used in most of British Columbia and the western United States. During daylight saving time, that region switches to Pacific Daylight Time (PDT). If you were looking for the local time in Vancouver, this is the wrong page. If you sell to customers in British Columbia, read on.
At a glance:
- GST: 5% federal tax, run by the Canada Revenue Agency (CRA). It applies everywhere except the five HST provinces.
- HST: 13% to 15%, combining GST and a provincial portion. Used in Ontario and the four Atlantic provinces, and also run by the CRA.
- PST: a separate provincial tax of 6% or 7% in British Columbia, Manitoba (called RST) and Saskatchewan. Quebec charges 9.975% QST.
- No provincial tax: Alberta, Yukon, the Northwest Territories and Nunavut charge 5% GST only.
- Registration: GST/HST registration starts above C$30,000 of taxable sales. Each province sets its own PST rules.
What are the sales tax rates in Canada by province in 2026?
Every province and territory charges either 5% GST or a combined HST. Four provinces add their own separate sales tax. These are the general rates in force in October 2026, per the CRA GST/HST rates page:
| Province or territory | Federal tax | Provincial tax | Total rate |
|---|---|---|---|
| Alberta | 5% GST | None | 5% |
| British Columbia | 5% GST | 7% PST | 12% |
| Manitoba | 5% GST | 7% RST | 12% |
| New Brunswick | 15% HST | Included in HST | 15% |
| Newfoundland and Labrador | 15% HST | Included in HST | 15% |
| Northwest Territories | 5% GST | None | 5% |
| Nova Scotia | 14% HST (15% until 31 March 2025) | Included in HST | 14% |
| Nunavut | 5% GST | None | 5% |
| Ontario | 13% HST | Included in HST | 13% |
| Prince Edward Island | 15% HST | Included in HST | 15% |
| Quebec | 5% GST | 9.975% QST | 14.975% |
| Saskatchewan | 5% GST | 6% PST | 11% |
| Yukon | 5% GST | None | 5% |
The CRA administers GST and HST. British Columbia, Manitoba and Saskatchewan run their own PST (Manitoba calls it Retail Sales Tax, or RST). Revenu Québec administers the QST. We checked the provincial rates against the BC government, Manitoba Finance, the Government of Saskatchewan and Revenu Québec.
What is GST in Canada?
GST is a 5% federal sales tax on most goods and services sold in Canada. It was introduced in 1991. Read more in our guide: A Guide to GST (Goods and Services Tax) Around the World.
GST is a value-added tax. It is charged at each stage of the supply chain. Businesses collect it and pay it to the Canada Revenue Agency (CRA). If you know how input and output VAT work in Europe, GST follows the same logic.
What is the GST rate?
The GST rate is 5%. It applies across Canada, except in provinces that use HST. In those provinces, the 5% is built into the HST rate.
Who pays GST?
The end consumer pays GST. Businesses collect it at the point of sale and send it to the CRA. Registered businesses can usually recover the GST they pay on their own purchases.
What is HST in Canada?
HST is a single tax that combines the 5% GST with a provincial portion. Five provinces use it to reduce admin for businesses. You can also read Canada Unveils 2025 Tax Relief to Help Businesses Weather U.S. Tariffs.
What is the HST rate?
The HST rate depends on the province, because each one sets its own provincial portion:
- Ontario: 13%
- Nova Scotia: 14% (since 1 April 2025)
- New Brunswick: 15%
- Newfoundland and Labrador: 15%
- Prince Edward Island: 15%
What are the benefits of HST?
HST means one tax, one return and one tax authority. Businesses in HST provinces deal only with the CRA. This makes it simpler to sell across those provincial borders.
What is PST in Canada?
PST is a provincial sales tax that a province charges on goods and some services sold or used within its borders. Unlike GST and HST, each province runs its own PST, with its own rules, returns and registration.
What is the PST rate?
The PST rate depends on the province:
- British Columbia: 7% PST
- Manitoba: 7% RST
- Saskatchewan: 6% PST
- Quebec: 9.975% QST, which works more like GST than a classic PST
Alberta, the three territories and the five HST provinces have no separate PST.
What is exempt from PST?
Each province sets its own exemptions. Basic groceries and prescription drugs are commonly exempt. But the details differ, so always check the rules in each province where you sell.
Two 2026 changes show how exemptions shift:
- Manitoba: From 1 July 2026, per Manitoba's Budget 2026 bulletin, RST no longer applies to more food and drinks sold by grocery stores, including some prepared foods, and to prenatal vitamins.
- British Columbia: From 1 October 2026, PST applies to basic cable TV, residential landline and toll-free phone services, and some clothing-making materials and clothing repair services. Basic laundry services stay exempt.
Did BC PST expand to professional services in October 2026?
No. British Columbia had planned to charge PST on five groups of professional services from 1 October 2026. On 18 September 2026, it paused that expansion through a temporary regulation. The exemptions therefore stay in place for:
- Accounting and bookkeeping services
- Architectural services
- Engineering and geoscience services
- Non-residential real estate commissions and services
- Security and private investigation services
The province told businesses that had already registered for a PST account for these services to cancel it. The other 1 October 2026 changes listed above did take effect.
How do GST, PST and HST work together?
The tax you charge depends on where your customer is. In each province, one of three set-ups applies:
- GST only: 5% in Alberta and the three territories.
- GST plus PST: two separate taxes in British Columbia, Manitoba, Saskatchewan and Quebec.
- HST: one combined tax in Ontario and the four Atlantic provinces.
For example, a customer in Ontario pays 13% HST. A customer in British Columbia pays 5% GST plus 7% PST, a total of 12%.
When should you charge GST, HST and PST?
You charge GST or HST once you are registered and make taxable sales in Canada. PST depends on each province’s own rules. Here are the key scenarios.
When do you charge GST?
You must register for GST once you stop being a “small supplier”. That happens when your taxable sales exceed C$30,000 in a single calendar quarter or over the last four consecutive quarters.
- Single quarter: if you exceed C$30,000 in one quarter, you must register from the sale that took you over.
- Four quarters: if you exceed it over four quarters, you stop being a small supplier at the end of the following month.
Worldwide taxable sales count, including those of associated businesses. Once registered, you charge GST on all taxable sales, except those that are exempt or zero-rated.
When do you charge HST?
You charge HST on taxable sales delivered to customers in an HST province. The same C$30,000 small-supplier test applies, because GST and HST share one registration.
When do you charge PST?
You charge PST when a province’s own rules require you to register there. These rules vary. For example, in British Columbia you must register if you sell or lease taxable goods, software or services in the province, including some businesses based outside BC.
What are a business’s main responsibilities?
A business must register where required, charge the right rate, file returns on time and keep records. If you get it wrong, you can face penalties and interest.
Registered businesses can claim input tax credits (ITCs). These recover the GST or HST paid on business purchases. This keeps the tax burden on the final consumer, not on businesses in the supply chain.
How do GST, HST and PST affect e-commerce businesses?
Online sellers must charge tax based on where the customer is, and they may need several provincial registrations. Here are the key points.
When does an online business need to register?
For GST/HST, the C$30,000 test applies. For PST, each province sets its own rules for sellers based elsewhere. A physical location, staff or significant sales in a province can all create an obligation.
What is destination-based taxation?
Destination-based taxation means the rate follows the customer’s location, not yours. For example, an Alberta business selling to a customer in Ontario charges 13% HST, not Alberta’s 5% GST.
How are digital goods and services taxed?
Digital products such as e-books, software and streaming are subject to GST/HST. Provincial treatment varies. For example, BC PST applies to software, and Manitoba RST applies to music and video streaming.
Do US or EU sellers need to register for GST/HST in Canada?
Often, yes. Since 1 July 2021, non-resident sellers must register if they pass C$30,000 of relevant sales to Canada in any 12-month period. The CRA sorts them into these cases:
| Situation | Threshold | Which regime |
|---|---|---|
| Digital products and services sold to Canadian consumers | C$30,000 in any 12 months | Simplified regime (normal regime in some cases) |
| Goods in a Canadian fulfilment warehouse or shipped from within Canada | C$30,000 in any 12 months | Normal regime only |
| Platform operators facilitating sales by unregistered non-resident vendors | C$30,000 in any 12 months | Depends on the supplies |
| Platforms for short-term accommodation in Canada | C$30,000 in any 12 months | Simplified or normal regime |
| Carrying on business in Canada | C$30,000 small-supplier test | Normal regime, usually with a security deposit |
A non-resident that does not carry on business in Canada and falls outside these cases generally does not need to register. Sales made through a GST/HST-registered marketplace count towards the platform’s threshold, not the seller’s. If you sell into the US too, see our VAT and US sales tax compliance guide.
How does the simplified GST/HST regime work?
The simplified regime is a collect-and-remit system for non-resident sellers of digital services. It works like this:
- You file a return every calendar quarter.
- Each return is due one month after the quarter ends.
- You cannot claim input tax credits.
- You file in Canadian dollars, or in US dollars or euros once the CRA approves your request.
When does a non-resident need a security deposit?
A non-resident with no permanent establishment in Canada that registers under the normal regime generally must pay a security deposit. There is an exception for small businesses. You do not need a deposit if your taxable sales in Canada will be C$100,000 or less a year and your annual net tax is within C$3,000 either way. Otherwise the deposit is generally 50% of your estimated net tax, with a minimum of C$5,000 and a maximum of C$1 million.
Worked example: a US SaaS company selling to Canadian consumers
A US software company sells C$45,000 of subscriptions to Canadian consumers over 12 months. That exceeds C$30,000, so it registers under the simplified regime. It charges the rate for each customer’s province: 13% HST in Ontario, 15% in New Brunswick and 5% GST in Alberta. Sales to businesses registered under the normal regime do not count towards the threshold.
Do provinces tax digital services and online marketplaces?
Yes, some do. Provincial registration is separate from GST/HST registration:
- British Columbia: Sellers outside BC may need to register if they sell taxable goods, software or services to BC customers. Since 1 July 2022, online marketplace facilitators must collect 7% PST on facilitated sales (Bulletin PST 142).
- Manitoba: Since 1 December 2021, RST applies to music and video streaming. Online marketplace operators must collect RST on taxable sales made through their platforms (Bulletin RST 064).
- Quebec: Suppliers outside Quebec that sell to Quebec consumers above C$30,000 in 12 months must register for QST under Revenu Québec’s specified system.
- Saskatchewan: Has its own registration rules for out-of-province sellers. Check with the Saskatchewan Ministry of Finance.
What should you do next?
Map where your Canadian customers are, check each threshold, and register before you pass it.
- List your sales by province over the last 12 months.
- Check the federal C$30,000 test and each provincial rule.
- Register for GST/HST and any PST or QST you need.
- Set the right rate for each province in your checkout.
- File returns on time and claim ITCs where you can.
GST works much like a VAT registration in Europe, so the same discipline applies. Do you need help with your Canadian sales tax compliance? Book a free call with one of our tax experts to discuss your situation.
Sources
- Canada Revenue Agency: GST/HST rates by province
- CRA: Doing Business in Canada – GST/HST Information for Non-Residents (RC4027)
- CRA: GST/HST for digital-economy businesses – find out if you need to register
- CRA: Simplified regime – complete and file a return
- Government of British Columbia: PST budget changes
- BC Government News: B.C. pauses PST expansion to professional services (18 September 2026)
- Government of British Columbia: PST on telecommunication services
- Government of Saskatchewan: Provincial Sales Tax
- Manitoba Finance: Retail Sales Tax
- Manitoba Finance: Bulletin RST 064
- Revenu Québec: QST
- Revenu Québec: Tables of GST and QST rates
How Taxually handles this
Taxually’s LumaTax runs a nexus analysis on your sales, helps you register in the states where you must collect, and prepares and files multi-state sales tax returns, including Canadian GST/HST. LumaTax is currently available to enterprises and accounting firms. For the full workflow, read how to automate US sales tax filing in every state.
Related guides
Frequently asked questions
What is PST in Canada?
PST is the Provincial Sales Tax that some provinces charge on top of the 5% federal GST. British Columbia and Manitoba charge 7%, Saskatchewan 6%, and Quebec charges its own 9.975% QST.
What is the difference between GST, HST and PST?
GST is a 5% federal tax across Canada. HST combines GST with a provincial portion in five provinces, at 13% to 15%. PST is a separate provincial tax, run by each province that charges it.
Which provinces use HST?
Ontario (13%), Nova Scotia (14%), and New Brunswick, Newfoundland and Labrador and Prince Edward Island (15% each).
Do all provinces have PST?
No. Only British Columbia, Manitoba (as RST) and Saskatchewan charge a separate PST, and Quebec charges QST. Alberta and the three territories charge only 5% GST. The HST provinces have no separate PST.
Did BC start charging PST on professional services in October 2026?
No. On 18 September 2026, British Columbia paused the planned expansion to accounting, architectural, engineering and geoscience, non-residential real estate and security services. Its 1 October 2026 changes to basic cable TV, residential landline and toll-free phone services and clothing repair did take effect.
Is PST in Canada the same as Pacific Standard Time?
No. In Canadian tax, PST means Provincial Sales Tax. Pacific Standard Time is the west coast time zone, which becomes Pacific Daylight Time during daylight saving time.
When do businesses need to register for GST/HST?
When taxable sales exceed C$30,000 in a single calendar quarter or over the last four consecutive quarters. PST registration rules are set by each province.
Do US or EU sellers need to register for GST in Canada?
Often, yes. Sellers of digital products or services to Canadian consumers register under the simplified regime once they exceed C$30,000 in any 12-month period. Sellers of goods stored or shipped from inside Canada above the same threshold register under the normal regime.
Can sellers under the simplified GST/HST regime claim input tax credits?
No. Simplified registrants file quarterly and cannot claim input tax credits. Businesses that want to recover GST/HST on their costs must register under the normal regime.
