Saskatchewan is one of the provinces in Canada that charges a separate Provincial Sales Tax (PST) and federal Goods and Services Tax (GST). In Saskatchewan, the PST is set at 6% and the GST is 5%. Most goods and services are charged with both taxes.
|=||Sales Taxes (11%)||$||5.50|
|Total After Taxes||$||55.50|
Unlike other provinces, there are almost no exemptions to Saskatchewan’s PST. Non-residents can purchase vehicles without paying PST. Registered First Nations are also exempt from the PST for goods and services purchased on First Nations lands. SeeSourcefor more details.
In 2020, Saskatchewan rolled out a new rebate for New Homes. Up to 42% of the PST paid for new homes closed from April 1st, 2020 to March 31st, 2023 can be rebated.
There are a number of conditions for the New Home Rebate:
There are two types of exemptions for GST: 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 GST on items from either category.
Goods and services that are zero-rated from GST include:
Goods and services that are directly exempt from GST include:
Sales taxes make up a significant portion of Saskatchewan’s budget. Revenues from sales taxes such as the PST are expected to total $2.555 billion, or 33.7% of all of Saskatchewan’s taxation revenue, during the 2019 fiscal year. This is greater than revenue from Saskatchewan’s corporate income tax and property tax combined.
Sales taxes also contribute to the Canadian government’s budget. The 5% Goods and Services Tax is expected to bring $40.8 billion in tax revenue during the 2019 fiscal year. This amounts to 14.2% of total tax revenue on the federal level. This is almost double the amount Canada spends on national defence every year.