GST and PST Calculator
Easily calculate the Goods and Services Tax (GST) and Provincial Sales Tax (PST) for any purchase in Canada. Understand total costs quickly and accurately.
functions Mathematical Formula
Formulas Used:
- GST Amount = Original Price × (GST Rate / 100)
- PST Amount = Original Price × (PST Rate / 100)
- Total Tax = GST Amount + PST Amount
- Final Price = Original Price + Total Tax
Understanding GST (Goods and Services Tax)
The Goods and Services Tax (GST) is a federal value-added tax levied on most goods and services sold for domestic consumption in Canada. It's a national tax that applies uniformly across the country (currently 5%). Businesses collect the GST on behalf of the government, and consumers ultimately bear the cost.
- Federal Tax: Applied nationwide.
- Standard Rate: Currently 5%.
- Broad Application: Covers most products and services.
Understanding PST (Provincial Sales Tax)
Provincial Sales Tax (PST) is a retail sales tax charged by some Canadian provinces on the sale of most goods and some services. Unlike GST, PST rates vary significantly by province, and some provinces have harmonized their PST with the GST to create a Harmonized Sales Tax (HST). Our calculator focuses on provinces with a separate PST.
- Provincial Tax: Varies by province.
- Retail Focus: Primarily on goods and select services.
- Separate from GST: Applied in addition to GST in some provinces.
How GST and PST Work Together
In provinces that have both GST and PST (e.g., British Columbia, Manitoba, Saskatchewan, Quebec with QST), both taxes are typically applied to the original price of a good or service. This means the consumer pays 5% GST on the item, plus the provincial PST rate on the same item. Our calculator simplifies this combined calculation, showing you the total tax burden and the final price.
- Dual Application: Both taxes apply to the original price.
- Varying Rates: PST rates differ by province.
- Total Transparency: See breakdown of each tax and final cost.
Key Considerations and Exemptions
While GST and PST apply broadly, there are important exemptions and special rules. Essential groceries, prescription drugs, and certain medical devices are generally exempt from GST. PST also has its own list of exemptions, which can include specific food items, professional services, or educational materials, depending on the province.
- GST Exemptions: Basic groceries, prescription drugs.
- PST Exemptions: Province-specific for goods/services.
- Harmonized Sales Tax (HST): Some provinces use HST instead of separate GST/PST.
Frequently Asked Questions
What is the difference between GST and PST? +
GST (Goods and Services Tax) is a federal tax applied across Canada, currently at 5%. PST (Provincial Sales Tax) is a provincial tax levied by individual provinces. Not all provinces have PST; some have opted for a Harmonized Sales Tax (HST) which combines federal and provincial taxes into one.
Which provinces use GST and PST separately? +
As of recent, provinces that levy both GST and a separate PST include British Columbia (PST), Manitoba (RST), Quebec (QST), and Saskatchewan (PST). The rates for PST/RST/QST vary by province.
Are all goods and services subject to GST and PST? +
No, there are various exemptions. Basic groceries, prescription drugs, and certain medical devices are generally exempt from GST. PST exemptions are province-specific and can include items like certain food products, professional services, and educational materials. Always check provincial regulations for precise details.
How accurate is this calculator? +
This calculator provides an accurate estimate based on the original price and the GST and PST rates you input. It's a great tool for quick calculations, but always refer to official government sources for the most current rates and specific tax rules, especially for complex transactions or businesses.
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