GST HST Calculator

Understanding GST (Goods and Services Tax)

The GST is a 5% federal tax applied to most goods and services sold in Canada. It's a value-added tax, meaning it's applied at each stage of the supply chain, from manufacturing to retail. Businesses collect GST on their sales and can claim input tax credits (ITCs) for the GST they pay on their purchases, effectively remitting only the net amount to the government.

What is HST (Harmonized Sales Tax)?

HST is a combined federal and provincial sales tax. In provinces that have 'harmonized' their provincial sales tax with the federal GST, a single HST is charged. This simplifies the tax collection process for businesses and consumers alike. The HST rate varies by province, as it includes the 5% federal GST plus a provincial portion.

How GST/HST Works Across Canada

Not all provinces charge HST. Some provinces still have their own separate provincial sales taxes (PST) in addition to the 5% federal GST. This means consumers in these provinces pay two distinct taxes. Our calculator allows you to input the combined effective rate, whether it's just GST, or a harmonized HST rate applicable to your specific transaction and location.

• GST-only provinces (e.g., Alberta): 5% GST
• HST provinces (e.g., Ontario, Nova Scotia): Combined rate (e.g., 13%, 15%)
• PST + GST provinces (e.g., British Columbia, Saskatchewan): Two separate taxes

Important Exemptions and Credits

While most goods and services are subject to GST/HST, certain items are zero-rated or exempt. Zero-rated items (like basic groceries and prescription drugs) have a 0% tax rate, allowing businesses to claim ITCs. Exempt items (like certain financial services and residential rents) do not charge tax, but businesses cannot claim ITCs for related expenses. Low-income Canadians may also be eligible for the GST/HST credit, a tax-free payment.