Sales taxes in Canada

Short description: Type of taxation in Canada

Taxation

An aspect of fiscal policy

Policies

* Government revenue
* Property tax equalization
* Tax revenue
* Non-tax revenue
* Tax law
* Tax bracket
* Tax threshold
* Exemption
* Credit
* Deduction
* Tax shift
* Tax cut
* Tax holiday
* Tax advantage
* Tax incentive
* Tax reform
* Tax harmonization
* Tax competition
* Double taxation
* Representation
* Unions
* Medical savings account
* Tax, tariff and trade

Economics

|  General Theory

* Price effect
* Excess burden
* Tax incidence
* Laffer curve
* Optimal tax
* Theory
* Optimal capital income taxation

Distribution of Tax

* Tax rate
* Flat
* Progressive
* Regressive
* Proportional

Collection

* Revenue service
* Revenue stamp
* Tax assessment
* Taxable income
* Tax lien
* Tax refund
* Tax shield
* Tax residence
* Tax preparation
* Tax investigation
* Tax shelter
* Private tax collection
* Tax farming

Noncompliance

|  General

* Tax avoidance
* Tax evasion
* Tax resistance
* Tax shelter
* Smuggling
* Black market
* Unreported employment

Corporate

* Tax inversion
* Transfer mispricing
* Base erosion and profit shifting (BEPS)
* Double Irish
* Dutch Sandwich
* Single Malt
* CAIA/Green Jersey

Locations

* Tax havens
* Corporate tax havens
* Offshore financial centres (OFCs)
* Offshore magic circle
* Conduit and Sink OFCs
* Financial centres
* Financial Secrecy Index

Major examples

* Apple €13 billion fine
* Ireland as a tax haven
* Leprechaun economics
* Liechtenstein tax affair
* Luxembourg Leaks
* Offshore Leaks
* Paradise Papers
* Panama Papers
* Swiss Leaks
* United States as a tax haven
* Panama as a tax haven

Types

* Direct
* Indirect
* Per unit
* Ad valorem
* In rem
* Capital gains
* Carbon
* Consumption
* Dividend
* Ecotax
* Excise
* Fuel
* Georgist
* Gift
* Gross receipts
* Income
* Inheritance (estate)
* Land value
* Payroll
* Pigovian
* Property
* Sales
* Sin
* Single
* Stamp
* Steering
* Turnover
* Value-added (VAT)
* Corporate profit
* Excess profits
* Windfall profits
* Negative (income)
* Wealth

International

* Financial transaction tax
* Currency transaction tax
* European Union Common Consolidated Corporate Tax Base (CCCTB)
* Tobin tax
* Spahn tax
* Tax equalization
* Tax treaty
* Permanent establishment
* Transfer pricing
* European Union FTT
* Foreign revenue rule

Trade

* Custom
* Duty
* Tariff
* Import
* Export
* Tariff war
* Free trade
* Free trade zone
* Trade agreement
* ATA Carnet

Research

|  Academic

* Mihir A. Desai
* Dhammika Dharmapala
* James R. Hines Jr.
* Ronen Palan
* Joel Slemrod
* Gabriel Zucman

Advocacy groups

* Tax Justice Network (TJN)
* Institute on Taxation and Economic Policy (ITEP)
* Oxfam (UK)
* Tax Foundation (US)
* Tax Policy Center (US)

Religious

* Church tax
* Eight per thousand
* Teind
* Tithe
* Fiscus Judaicus
* Leibzoll
* Temple tax
* Tolerance tax
* Jizya
* Kharaj
* Khums
* Nisab
* Zakat

By country

|  All Countries

* List of countries by tax rates
* Tax revenues as % of GDP
* Tax rates in Europe

Individual Countries

* Albania
* Algeria
* Argentina
* Australia
* Azerbaijan
* Bangladesh
* Bhutan
* Brazil
* Bulgaria
* BVI
* Canada
* China
* Colombia
* Croatia
* Denmark
* Finland
* France
* Germany
* Greece
* Hong Kong
* Iceland
* India
* Indonesia
* Iran
* Ireland
* Israel
* Italy
* Japan
* Kazakhstan
* Lithuania
* Malta
* Morocco
* Namibia
* Netherlands
* New Zealand
* Norway
* Pakistan
* Palestine
* Peru
* Philippines
* Poland
* Portugal
* Russia
* Singapore
* South Africa
* Sri Lanka
* Sweden
* Switzerland
* Taiwan
* Tanzania
* United Kingdom
* United States
* Uruguay

* v
* t
* e

In Canada, there are two types of sales taxes levied. These are :

* Provincial sales taxes or PST (French: Taxes de vente provinciale - TVP), levied by the provinces.
* Goods and services tax or GST (French: Taxe sur les produits et services - TPS) / Harmonized sales tax or HST (French: Taxe de vente harmonisée - TVH), a value-added tax levied by the federal government. The GST applies nationally. The HST includes the provincial portion of the sales tax but is administered by the Canada Revenue Agency (CRA) and is applied under the same legislation as the GST. The HST is in effect in Ontario, New Brunswick, Newfoundland and Labrador, Nova Scotia and Prince Edward Island.

Every province except Alberta has implemented either a provincial sales tax or the Harmonized Sales Tax. The federal GST rate is 5 percent, effective January 1, 2008.

The territories of Yukon, Northwest Territories, and Nunavut have no territorial sales taxes, so only the GST is collected. The three northern jurisdictions are partially subsidized by the federal government, and their residents receive some additional tax concessions due to the high cost of living in the north.

## Contents

* 1 Provincial sales taxes
* 2 New housing rebate
* 3 References
* 4 Further reading
* 5 External links

## Provincial sales taxes

Separate provincial sales taxes (PST) are collected in the provinces of British Columbia, Saskatchewan, Manitoba (retail sales tax or RST) and Quebec (Quebec sales tax or QST, French: Taxe de vente du Québec or TVQ). Prince Edward Island switched to a HST on April 1, 2013, on the same day that British Columbia reverted to a separate GST/PST, from a short-lived HST that was put in place in 2010 but rejected by voters in a referendum soon after.[1] Goods to which the tax is applied vary by province, as does the rate. In all provinces where the provincial sales tax is collected, the tax is imposed on the sale price without GST (in the past, in Quebec and in Prince Edward Island, PST was applied to the combined sum of sale price and GST). Of the provincial sales taxes, only the QST is a value-added tax.

Province  | Type  | Prov. rate (%)  | Total tax rate (%)  | Notes

|
|
|
|

Alberta | GST | 0 | 5  | Short-term accommodation is subject to 5% federal GST and the Alberta Tourism Levy. The Tourism Levy increased from 4% to 6% effective April 1, 2026, making the standard combined government tax on most post-March 31, 2026 accommodation bookings 11%. Bookings made before April 1, 2026 may remain subject to the former 4% levy.[2]
British Columbia  | GST + PST | 7 | 12  |

Main article: Sales taxes in British Columbia

Reverted to a separate GST/PST on April 1, 2013, with a PST of 7%, after their adoption of a HST in 2010 was rejected in a referendum.[1] A higher 10% PST rate applies to liquor.[3]
Manitoba  | GST + RST | 7  | 12[4] | The RST was increased one point to 8% on July 1, 2013. It reverted to 7% as of July 1, 2019 and although it was planned to drop to 6% as of July 1, 2020[5][6] due to the COVID-19 pandemic the province has deferred the reduction until further notice.[7]

Manitoba municipalities may also impose separate local taxes by by-law, including taxes on motel and hotel accommodation; such by-laws must set the tax rate and receive provincial approval before taking effect.[8] Examples include Winnipeg, which increased its accommodation tax from 5% to 6% effective April 1, 2024,[9] while other Manitoba municipalities such as Brandon,[10] Portage la Prairie,[11] Thompson,[12] The Pas,[13] Gimli,[14] Churchill,[15] Dauphin,[16] and Flin Flon[17] may set their own local accommodation-tax rates.

New Brunswick  | HST | N/A | 15  | The HST was increased two points to 15% on July 1, 2016.[18]
Newfoundland and Labrador  | HST | N/A  | 15  | The HST was increased two points to 15% on July 1, 2016.[19]
Northwest Territories | GST | 0 | 5  |
Nova Scotia  | HST | N/A | 14  | The HST was reduced from 15% to 14% starting April 1, 2025.[20]
Nunavut | GST | 0 | 5  |
Ontario  | HST | N/A | 13  |
Prince Edward Island  | HST | N/A | 15[21] | The HST was increased one point to 15% on October 1, 2016.[1]
Quebec  | GST + QST | 9.975[22] | 14.975[23] | Books are taxed at 5.0% (considered essential goods for QST but not for GST). There is an additional tax on tourist lodgings such as hotels which is usually 3.5%. This tax does not apply in Nunavik.[24][25]
Saskatchewan  | GST + PST  | 6 | 11  | The 6% rate is effective for goods and services effective March 23, 2017.[26] Effective April 1, 2017, New Homes, restaurant meals and other prepared food and beverages are subject to PST.[27]

Special rules apply in Lloydminster, Saskatchewan: PST is generally not collected on goods delivered to or picked up in Lloydminster for use or consumption within the city limits, subject to exceptions such as vehicles, lodging, telecommunication services, commercial electricity, and insurance contracts; liquor sales there are also exempt from Saskatchewan’s Liquor Consumption Tax.[28]

Yukon | GST | 0 | 5  |

## New housing rebate

Sales taxes on new or significantly renovated housing used as a primary residence may be eligible to have a portion of charged federal and provincial sales taxes rebated. New homes valued up to $450,000 may be eligible for a 36% rebate on GST charged up to a maximum of $6,300.[29] Provincial sales tax rebate programs on new housing are offered in Ontario, British Columbia, Nova Scotia, Saskatchewan, and Quebec (for QST). Terms and conditions vary by province.

## References

1. ↑ 1.0 1.1 1.2 "P.E.I. budget announces increase in HST". CBC News. April 19, 2016. http://www.cbc.ca/news/canada/prince-edward-island/pei-budget-2016-1.3542573.
2. ↑ "Tourism levy". Government of Alberta. https://www.alberta.ca/tourism-levy.
3. ↑ "PST Bulletin: Restaurants and Liquor Sellers". https://www2.gov.bc.ca/assets/gov/taxes/sales-taxes/publications/pst-119-restaurants-liquor-sellers.pdf.
4. ↑ "Retail Sales Tax". Manitoba Finance. Manitoba Ministry of Finance. 2013. https://www.gov.mb.ca/finance/taxation/taxes/retail.html.
5. ↑ Siragusa, Austin. "Manitoba provincial sales tax rate drops to 7% on Canada Day". https://globalnews.ca/news/5449555/manitoba-provincial-sales-tax-canada-day/.
6. ↑ Froese, Ian. "Pallister Government to cut PST by 1 percentage point using revenues from its own carbon tax". https://www.cbc.ca/news/canada/manitoba/manitoba-pst-green-levy-1.5486838.
7. ↑ "Information Bulletin 120". https://www.gov.mb.ca/finance/taxation/pubs/bulletins/2020budget.pdf.
8. ↑ "C.C.S.M. c. M265: The Municipal Taxation and Funding Act". Government of Manitoba. https://web2.gov.mb.ca/laws/statutes/ccsm/m265.php.
9. ↑ "Accommodation Tax". https://assessment.winnipeg.ca/asmttax/english/other_taxes/accommodation.stm.
10. ↑ "Hotelier - Event Accommodation Tax Grant". https://www.brandon.ca/business-building-development/grants-and-incentives/event-accommodation-tax-grant/hotelier/.
11. ↑ "Accommodation Tax in Portage la Prairie: FAQ for Hoteliers". https://www.city-plap.com/media/3wsjj3o2/accommtaxfaqforhoteliers.pdf.
12. ↑ "Consolidated Accommodation By-law 2017". https://www.thompson.ca/Home/DownloadDocument?docId=c64e639c-0e69-4a09-9e82-357a49c3357c.
13. ↑ "Accommodation Tax By-Law No. 4535". https://townofthepas.ca/vertical/sites/{B1225F10-83CE-4583-9E63-CD3FD10CA66A}/uploads/Accommodation_Tax_-_By-Law_No._4535.pdf.
14. ↑ "Accommodation Tax By-Law No. 23-0012". https://www.gimli.ca/Home/DownloadDocument?docId=27525afd-c8c9-4947-bece-b0c3c66140a4.
15. ↑ "By-Laws". https://www.churchill.ca/p/by-laws.
16. ↑ "Accommodation Tax". https://www.dauphin.ca/Home/DownloadDocument?docId=005d3ddd-8b01-4eba-8c50-4253f8fd34b9.
17. ↑ "Municipality of Bifrost-Riverton Municipal Service Delivery Improvement Program". https://www.gov.mb.ca/mr/mfpp/pubs/bifrost-riverton-mnp-final_report.pdf.
18. ↑ "Harmonized Sales Tax (HST) - Finance". February 11, 2013. http://www2.gnb.ca/content/gnb/en/departments/finance/taxes/hst.html.
19. ↑ "Harmonized Sales Tax". July 22, 2019. http://www.fin.gov.nl.ca/fin/tax_programs_incentives/personal/hst.html.
20. ↑ Finance and Treasury Board: HST, Nova Scotia (October 23, 2024). "Finance and Treasury Board: HST". https://www.novascotia.ca/finance/en/home/taxation/tax101/hst/default.aspx.html.
21. ↑ Public Treasury, Prince Edward Island Department of (January 7, 2008). "Tax and Land Information Website: Revenue Tax (PST)". http://www.gov.pe.ca/pt/taxandland/index.php3?number=76948&lang=E.
22. ↑ As of January 1, 2013, Quebec officially changed the QST rate to 9.975. Previously, it had a nominal rate of 9.5 (Quebec raised the QST from 7.5 to 8.5 on Jan 1 2011, and then from 8.5 to 9.5 on Jan 1 2012), but the QST was applied to the combined sum of sale price and GST, making the effective QST rate 9.975. As of January 1, 2013, the rate no longer applies to the combined sum of sale price and GST, and is simply 9.975.
23. ↑ "QST and GST/HST". Revenu Quebec. https://www.revenuquebec.ca/en/businesses/consumption-taxes/gsthst-and-qst/basic-rules-for-applying-the-gsthst-and-qst/.
24. ↑ "Revenu Québec - Calculating and Collecting the Tax on Lodging". https://www.revenuquebec.ca/en/businesses/consumption-taxes/tax-on-lodging/calculating-and-collecting/.
25. ↑ "Revenu Québec - Establishments Subject to the Tax on Lodging". https://www.revenuquebec.ca/en/businesses/consumption-taxes/tax-on-lodging/establishments-subject-to-the-tax-on-lodging/.
26. ↑ "IN 2017-01 PST Transitional Rules". http://www.finance.gov.sk.ca/revenue/pst/IN2017-01-PSTRateTransitionRules.pdf.
27. ↑ "Restaurants, Caterers and Other Businesses Selling Prepared Food and Beverage". March 22, 2017. http://finance.gov.sk.ca/revenue/pst/bulletins/PST-33 Restaurants.pdf.
28. ↑ "Businesses Operating in Lloydminster, Saskatchewan: Provincial Sales Tax, Liquor Consumption Tax and Vapour Products Tax". Government of Saskatchewan. https://sets.saskatchewan.ca/rptp/wcm/connect/2a42e0d0-4389-4105-9e01-1884cae029ef/IN+2018-02+Lloydminster+Businesses,+PST,+LCT+and+VPT.pdf.
29. ↑ Agency, Canada Revenue (2017-06-22). "GST/HST New Housing Rebate". https://www.canada.ca/en/revenue-agency/services/forms-publications/publications/rc4028/gst-hst-new-housing-rebate.html.

## Further reading

* Bird, R. M. (2012). The GST/HST: Creating an Integrated Sales Tax in a Federal Country. Rotman School of Management Working Paper, (2115620).

## External links

* GST/HST rates table at the Canada Revenue Agency
* Government of British Columbia: Sales Taxes
* Revenu Quebec website
* Revenu Québec (General Information Concerning the QST and the GST/HST

* v
* t
* e

Sales taxes in North America

Sovereign states|

* Antigua and Barbuda
* Bahamas
* Barbados
* Belize
* Canada
* Costa Rica
* Cuba
* Dominica
* Dominican Republic
* El Salvador
* Grenada
* Guatemala
* Haiti
* Honduras
* Jamaica
* Mexico
* Nicaragua
* Panama
* Saint Kitts and Nevis
* Saint Lucia
* Saint Vincent and the Grenadines
* Trinidad and Tobago
* United States

Dependencies and
other territories

* Anguilla
* Aruba
* Bermuda
* Bonaire
* British Virgin Islands
* Cayman Islands
* Curaçao
* Greenland
* Guadeloupe
* Martinique
* Montserrat
* Puerto Rico
* Saint Barthélemy
* Saint Martin
* Saint Pierre and Miquelon
* Saba
* Sint Eustatius
* Sint Maarten
* Turks and Caicos Islands
* United States Virgin Islands

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