Taxation in Canada - Sales Taxes

Sales Taxes

See also: Sales taxes in Canada

The federal government levies a multi-stage sales tax of 5% (6% prior to January 1, 2008, and 7% before July 1, 2006), that is called the Goods and Services Tax (GST), and, in some provinces, the Harmonized Sales Tax (HST). The GST/HST is a value-added tax.

All provincial governments except Alberta levy sales taxes as well. The provincial sales taxes for the provinces of British Columbia, Nova Scotia, New Brunswick, Newfoundland and Labrador, and Ontario are harmonized with the GST, that is they have a combined tax instead of separate GST and PST. The provinces of Quebec and Prince Edward Island apply provincial sales tax to the sum of price and GST. The territories of Nunavut, Yukon and Northwest Territories charge GST only.

Provincial and federal sales tax rates at the retail level on goods and some services are as follows:

Province HST GST PST Total Tax
Alberta 5% 5%
British Columbia 12% 12%
Manitoba 5% 7% 12%
New Brunswick 13% 13%
Newfoundland and Labrador 13% 13%
Nova Scotia 15% 15%
Ontario 13% 13%
Prince Edward Island 5% 10% 15.5%
Québec 5% 9.5% 14.975%
Saskatchewan 5% 5% 10%

Read more about this topic:  Taxation In Canada

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