What's the Difference Between GST and HST?

GST is Canada's federal 5% tax applied in every province and territory. HST is what provinces like Ontario, Nova Scotia, and New Brunswick charge instead — it combines the 5% federal GST with a provincial portion into one blended rate, so you see a single tax line on your receipt rather than two. Provinces that didn't harmonize (BC, Saskatchewan, Manitoba, and Quebec) charge the federal GST plus a separate provincial tax as two distinct lines.

If you've ever looked at a Canadian receipt and wondered why the tax line looks different depending on where you are, you're not alone. Canada has three types of sales tax — GST, HST, and PST — and which one you pay depends entirely on the province or territory. Here's what each one is and where it applies.

GST — Goods and Services Tax

• Federal tax, 5%, applies in every province and territory
• Charged on its own in Alberta, Yukon, Northwest Territories, and Nunavut (no provincial sales tax in these places)
• In provinces with PST or QST, GST is charged alongside the provincial tax as two separate line items
• In HST provinces, GST is folded into the single harmonized rate — you don't see it separately on the receipt

HST — Harmonized Sales Tax

A single combined federal + provincial tax used in five provinces. HST replaced the separate GST + PST with one rate to simplify collection.

On a receipt in an HST province, you'll see one tax line (HST) instead of two.

PST — Provincial Sales Tax

A provincial-only tax charged on top of GST in four provinces. Each province sets its own rate and its own rules about what's taxable.

Quebec calls its provincial tax QST (Quebec Sales Tax) and Manitoba calls theirs RST (Retail Sales Tax) — both function like PST. On a receipt in a PST province, you'll typically see two tax lines: GST and PST (or QST/RST).

Why Does Canada Have Both HST and PST?

Canada's split system is the result of provincial choice. When the federal government introduced the GST in 1991, each province had to decide whether to harmonize their existing provincial sales tax with the federal system or keep it separate. Provinces that agreed to harmonize — beginning with Atlantic Canada in 1997 and Ontario in 2010 — merged their taxes into a single HST collected and administered by the CRA, simplifying tax filing to one combined return. Provinces like British Columbia, Saskatchewan, Manitoba, and Quebec chose to maintain their own separate provincial taxes, administered by their own authorities, so businesses operating there must register and file with both the CRA and the relevant province.

GST, HST, and Input Tax Credits (ITCs)

For registered businesses, the practical difference between these taxes often comes down to recoverability. GST and HST are value-added taxes (VATs): registered businesses can recover the amount paid on eligible business inputs by claiming an Input Tax Credit (ITC) on their CRA return. BC PST, Saskatchewan PST, and Manitoba RST are retail sales taxes, not VATs — they generally cannot be claimed as ITCs and become a direct cost of doing business. Quebec's QST is structured like a VAT and is recoverable for eligible registrants, but as an Input Tax Refund (ITR) filed with Revenu Québec rather than an ITC with the CRA.

Quick Reference — Tax by Province and Territory

Frequently Asked Questions

Is GST the same as HST?

Not exactly. GST is the 5% federal tax that applies across all of Canada. HST includes that same 5% federal GST blended together with a provincial portion into one combined rate — Ontario's 13% HST is 5% federal GST + 8% provincial. In provinces without HST, you pay the 5% federal GST and a separate provincial tax (or no provincial tax at all, as in Alberta and the territories).

Why do some provinces charge HST and others charge GST + PST?

It comes down to provincial choice. When Canada introduced the GST in 1991, each province had to decide whether to merge their provincial sales tax with the federal system. Atlantic provinces and Ontario eventually agreed to harmonize, creating HST administered by the CRA. BC, Saskatchewan, Manitoba, and Quebec chose to keep their own separate provincial taxes with their own administration and rules.

Does every province charge the same GST rate?

Yes — GST is always 5% regardless of province, because it is a federal tax set by the federal government. In HST provinces, the 5% federal component is folded into the combined HST rate and not shown separately on your receipt, but the underlying rate is the same everywhere. Alberta and the territories charge only the 5% GST with no provincial tax on top.

What is the difference between PST and QST?

Both are provincial-level taxes charged on top of the federal 5% GST, but they work differently. PST in BC (7%), Saskatchewan (6%), and Manitoba (7% RST) is a retail sales tax — generally not recoverable as an Input Tax Credit for businesses — and is administered by each province's own authority. Quebec's QST (9.975%) is structured like a value-added tax, similar to the GST, so registered businesses can recover it as an Input Tax Refund (ITR) through Revenu Québec.

Can businesses claim back GST and HST they paid?

Yes, if your business is registered for GST/HST with the Canada Revenue Agency. You recover the GST or HST paid on eligible business purchases by claiming an Input Tax Credit (ITC) on your GST/HST return, which reduces the net tax you owe to the CRA. Valid documentation — typically an invoice showing the supplier's GST/HST registration number and the tax amount — is required to support each claim.

Can businesses claim back PST they paid?

Generally no. BC PST, Saskatchewan PST, and Manitoba RST are retail sales taxes with no Input Tax Credit mechanism, so PST paid on eligible business purchases is typically a non-recoverable cost that flows to the expense or asset. Some narrow exemptions exist in each province (for example, manufacturing inputs or purchases for resale), so verify eligibility with the relevant provincial tax authority.

Which province has the highest sales tax in Canada?

At a combined rate, New Brunswick, Newfoundland and Labrador, and Prince Edward Island are tied at the top at 15% HST. Quebec follows at 14.975% (5% GST + 9.975% QST), and Nova Scotia is at 14% HST (reduced from 15% on April 1, 2025).

Which province has the lowest sales tax in Canada?

Alberta has the lowest sales tax in Canada at 5% (GST only) — it is the only province with no provincial sales tax of any kind. The three territories (Yukon, Northwest Territories, and Nunavut) also charge only the 5% federal GST with no territorial sales tax.

How to Remove Any of These Taxes from a Price

Regardless of which tax type applies, removing it from a total uses the same reverse formula — divide the total by 1 plus the rate. See the full explanation in our reverse tax formula Canada guide. Or use the free province-specific calculators on TaxBackwards.ca:

• Ontario
• Quebec
• British Columbia
• Alberta
• Nova Scotia
• New Brunswick
• Newfoundland and Labrador
• Prince Edward Island
• Saskatchewan
• Manitoba
• Yukon, Northwest Territories & Nunavut

Use the free Canadian reverse tax calculator to extract tax from any total instantly.

Calculations are arithmetic estimations only and do not constitute formal tax or corporate auditing advice. All figures must be verified against current CRA guidelines before filing.