Canada Reverse GST/HST Calculator 2020

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Overview of sales tax in Canada

  • The Harmonized Sales Tax, or HST, is a sales tax that is applied to most goods and services in a number of Canadian provinces: New Brunswick, Newfoundland and Labrador, Nova Scotia, Ontario, and Prince Edward Island.

  • Other provinces in Canada do not use the HST and instead use a distinct Goods and Services Tax (GST) and/or Provincial Sales Tax (PST). Provinces with both a GST and PST or PST-equivalent include British Columbia, Saskatchewan, Quebec, and Manitoba.

  • Quebec and Manitoba use the QST and RST respectively in lieu of a PST. Some provinces such as Alberta and also all territories do not charge a PST.

attach_money
PST (8%) $3.54
+GST (5%) $2.21
=HST (13%) $5.75
Amount Before Taxes$44.25

ProvinceProvincial TaxFederal TaxTotal Tax
Alberta 0% 5% 5%
British Columbia 7% 5% 12%
Manitoba 7% 5% 12%
New Brunswick 10% 5% 15%
Newfoundland and Labrador 10% 5% 15%
Northwest Territories 0% 5% 5%
Nova Scotia 10% 5% 15%
Nunavut 0% 5% 5%
Ontario 8% 5% 13%
Prince Edward Island 10% 5% 15%
Québec 9.975% 5% 14.975%
Saskatchewan 6% 5% 11%
Yukon 0% 5% 5%

Sales Tax Structure of Canadian Provinces and Territories

HST only Provinces

New Brunswick-new-brunswick-flag.svgNew BrunswickHST
Newfoundland and Labrador-newfoundland-and-labrador-flag.svgNewfoundland and LabradorHST
Nova Scotia-nova-scotia-flag.svgNova ScotiaHST
Ontario-ontario-flag.svgOntarioHST
Prince Edward Island-prince-edward-island-flag.svgPrince Edward IslandHST

GST+PST Provinces

British Columbia-bc-flag.svgBritish ColumbiaGST + PST
Manitoba-manitoba-flag.svgManitobaGST + RST
Québec-quebec-flag.svgQuébecGST + QST
Saskatchewan-saskatchewan-flag.svgSaskatchewanGST + PST

GST only Provinces/Territories

Alberta-alberta-flag.svgAlbertaGST
Northwest Territories-northwest-territories-flag.svgNorthwest TerritoriesGST
Nunavut-nunavut-flag.svgNunavutGST
Yukon-yukon-flag.svgYukonGST

Harmonized Sales Tax (HST)

The Harmonized Sales Tax, or HST, is a sales tax that is applied to most goods and services in a number of Canadian provinces: New Brunswick, Newfoundland and Labrador, Nova Scotia, Ontario, and Prince Edward Island. It ranges from 13% in Ontario to 15% in other provinces and is composed of a provincial tax and a federal tax.

Exemptions to the HST

There are two types of exemptions for HST: direct exemptions and zero-rated goods and services. The difference is related to how businesses handle costs related to the exemptions, but as a consumer, you would not have to pay HST on items from either category.

Goods and services that are zero-rated from HST include:

  • Basic groceries, including meats, fish, cereals, dairy products, eggs, vegetables, coffee, tea. Some foods including snack foods, liquor, and carbonated beverages are charged HST.
  • Prescription drugs, but not any drugs available over-the-counter (OTC).
  • Medical devices
  • Feminine hygiene products

Goods and services that are directly exempt from HST include:

  • Residential resales of property that has been previously owned and used
  • Rental accommodations of longer than a month
  • Educational services that lead to a certificate or diploma or are required for a certain practice
  • Medical and dental services
  • Financial services such as bank fees
  • Legal aid services
  • Day-care services

There are special cases that are exempt from HST but are still taxed a provincial sales tax.

The Goods and Services Tax (GST) and Provincial Sales Tax (PST)

Other provinces in Canada do not use the HST and instead use a distinct Goods and Services Tax (GST) and/or Provincial Sales Tax (PST). Provinces with both a GST and PST or PST-equivalent include British Columbia, Saskatchewan, Quebec, and Manitoba. Quebec and Manitoba use the QST and RST respectively in lieu of a PST.

Some provinces and territories do not charge a PST. These include Alberta, the Northwest Territories, Nunavut, and Yukon.

History of Sales Taxes in Canada

To finance the First World War, Canada first introduced the Manufacturers’ Sales Tax (MST) along with other sales taxes in 1920. The MST was charged at every stage of the manufacturing process, causing a negative cascading effect. In 1991, the government replaced the MST with a consumption value-added tax known as the GST. The series of reforms included a provision to prevent double-taxation with the ability of individuals to claim input tax credits (ITCs) on purchases. This change to the GST was done with the exception of Quebec, who introduced their own form of value-added tax (QST). The GST rate was decreased from 7% to 5% between 2006 to 2008.

After 1996, several provinces adopted HST, a combination of PST and GST into a single value-added tax. Currently, Ontario, Prince Edward Island, New Brunswick, Newfoundland and Labrador, and Nova Scotia have adopted the HST. British Columbia, Manitoba, Quebec, and Saskatchewan still pay separate GSTs and HSTs, and Alberta, Northwest Territories, Nunavut, and Yukon do not have a provincial sales tax.

This calculator is provided for general information purposes only. WOWA does not guarantee the accuracy of information shown, and is not responsible for any consequences of the use of the calculator.
* Rates shown are on approved credit and subject to change without notice.