How to Remove GST from a Price in Alberta
Alberta is the only Canadian province with no provincial sales tax. The only tax on most purchases is the federal 5% GST. When you have a GST-included total and need the pre-tax amount — for expense reports, reimbursements, or business records — the reverse GST formula is straightforward.
The Reverse GST Formula (Alberta 5%)
The formula is straightforward:
Pre-tax amount = Total ÷ 1.05
Alberta applies only the federal GST — there is no provincial sales tax:
- GST rate: 5% (federal only — no PST in Alberta)
- Formula: Pre-tax = Total ÷ 1.05
- GST amount: Total − Pre-tax
4 Worked Examples
| Total Paid | Pre-Tax Amount | GST (5%) |
|---|---|---|
| $10.50 | $10.00 | $0.50 |
| $52.49 | $49.99 | $2.50 |
| $105.00 | $100.00 | $5.00 |
| $262.50 | $250.00 | $12.50 |
Example 1 — $10.50 total: $10.50 ÷ 1.05 = $10.00 pre-tax. $10.50 − $10.00 = $0.50 GST.
Example 2 — $52.49 total: $52.49 ÷ 1.05 = $49.99 pre-tax. $52.49 − $49.99 = $2.50 GST.
Example 3 — $105.00 total: $105.00 ÷ 1.05 = $100.00 pre-tax. $105.00 − $100.00 = $5.00 GST.
Example 4 — $262.50 total: $262.50 ÷ 1.05 = $250.00 pre-tax. $262.50 − $250.00 = $12.50 GST.
Skip the Math — Use the Calculator
Enter any Alberta total into the free Alberta reverse GST calculator and get the pre-tax amount and GST breakdown instantly — no division required.
What If You're a Business? (Input Tax Credits)
If your business is registered for GST, you may be able to claim Input Tax Credits (ITCs) to recover the 5% GST paid on eligible business expenses. Since Alberta has no provincial sales tax, there is no provincial component to recover. ITC eligibility depends on your registration status and the nature of the expense — consult a tax professional for advice specific to your situation.
Alberta GST Exemptions
Not every Alberta purchase includes 5% GST. Common exempt and zero-rated items include:
- Basic groceries
- Prescription drugs
- Most medical devices
- Residential rent
- Child care services
If an item is exempt, there is no GST to remove — do not apply the ÷ 1.05 formula to those totals.
Use the free Alberta reverse GST calculator to extract GST from any Alberta total instantly.
For the full Alberta tax reference including common amounts table and ITC rules, see the Alberta Province Tax Guide.
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.