GST/HST Rates by Province, and Why They're Not the Same
Coming from South Africa’s single national VAT rate, the idea that sales tax changes depending on which province you’re standing in takes some getting used to. The spread of GST/HST rates by province in Canada is nearly ten percentage points between the cheapest and the most expensive, and it’s real enough to notice on an ordinary shopping trip.
The three different structures
So why is sales tax different in every Canadian province? Because Canada doesn’t have one sales tax system — it has three, layered differently depending on where you are.
Some provinces charge only the federal GST, at 5%, with no separate provincial sales tax on top — Alberta, and the three territories (Yukon, Northwest Territories, Nunavut), sit here. And do the territories have provincial sales tax at all? No — like Alberta, all three simply charge the federal 5% and nothing on top of it.
Some provinces charge GST plus their own separate provincial sales tax, calculated and sometimes administered independently — British Columbia (5% GST + 7% PST = 12%), Manitoba (5% + 7% RST = 12%), and Saskatchewan (5% + 6% PST = 11%) all follow this pattern.
The rest have harmonised the two into a single combined HST rate, collected as one number rather than two separate calculations: Ontario at 13%, Nova Scotia at 14% (cut from 15% in April 2025), and New Brunswick, Newfoundland & Labrador, and Prince Edward Island all at 15%. Ontario is where most South African arrivals land first, so it’s the one people ask about: what is the total sales tax rate in Ontario? 13%, all combined into the single HST line on a receipt.
Quebec is its own case again — 5% GST plus a 9.975% QST, combining to 14.975%, administered through Quebec’s own revenue agency rather than following the federal HST model. In the end, which provinces charge HST and which charge GST alone or GST-plus-PST comes down entirely to this three-way split, and it’s worth knowing before you budget a move to a specific province.
Why Alberta looking cheap on tax doesn’t tell the whole story
Alberta’s 5% rate, combined with no provincial income tax surtaxes some other provinces carry, gets marketed as a tax haven. At middle incomes it’s a real but modest advantage — roughly $300 a year better than Ontario at a $90,000 salary, once income tax, CPP and EI are all factored in together. The sales tax gap matters more to daily spending than that headline number suggests: an Ontario household paying 13% on non-grocery, non-rent purchases spends noticeably more at the till than an Alberta household paying 5% on the same basket, and that difference compounds every time you buy anything taxable.
What’s actually zero-rated everywhere
Basic groceries, prescription drugs and most medical devices are zero-rated for GST/HST regardless of province, and rent is exempt entirely. This matters for budgeting: the sales tax rate you’re comparing between provinces mostly affects discretionary and non-grocery spending rather than your baseline cost of living.
The habit that catches every newcomer at least once
Canadian shelf prices are displayed excluding sales tax, unlike South Africa where VAT is baked into the sticker price. A $20 item is $22.60 at the till in Ontario, rather than the $20 on the shelf tag. Add the customary 15–20% tip on restaurant bills — again calculated separately — and a night out can cost noticeably more than the menu prices suggested. Budget with the tax and tip added mentally before you get to the counter.
The practical takeaway
If you have a genuine choice of province, the sales tax rate is one input among several — income tax rates, cost of living, job market, and the things that actually matter more day to day. It’s a real number worth knowing, but a poor foundation for a relocation decision on its own.
Our What It Really Costs guide breaks a full Canadian budget down category by category, sales tax included — useful if you’re comparing more than one province at once.