GST/HST in Canada: how the sales tax works

What is GST/HST?

GST/HST is one federal sales tax with two names: the Goods and Services Tax (GST) is 5% across Canada, and in five participating provinces it is combined with the provincial sales tax into a single Harmonized Sales Tax (HST).^[cra_rates] The Canada Revenue Agency collects both, registrants report them on one GST/HST return, and an HST receipt shows one tax line, not a GST line and a provincial line.

Because GST/HST is a value-added tax, each business in a supply chain charges it on its sales and claims back the tax it paid on its own business purchases as input tax credits; the final consumer bears the tax.^[cra_rc4022] Work out the tax on any amount with the GST calculator, or take it back out of a receipt total with the reverse HST calculator.

GST rate in Canada and HST by province

The GST rate in Canada is 5% in every province and territory; the HST rate is 13% in Ontario, 14% in Nova Scotia (since April 1, 2025) and 15% in New Brunswick, Newfoundland and Labrador and Prince Edward Island.^[cra_rates] British Columbia, Saskatchewan and Manitoba charge their own provincial sales tax next to GST, Quebec charges the 9.975% QST administered by Revenu Québec, and Alberta and the three territories charge GST only.^[rq_rates]

HST provinces are highlighted. Compare one amount across all of them on the sales tax calculator for Canada, or see the federal and provincial parts of each HST dollar on the HST calculator.

Which rate to charge: the place-of-supply rules

A registrant charges the rate of the province where the supply is made, which for goods is generally the province where they are delivered and for services the province of the customer's address, not the province where the seller is located.^[cra_pos]

The difference is real money: a $1,000.00 sale delivered in Ontario carries $130.00 HST, while the same sale delivered in British Columbia carries $50.00 GST (plus B.C.'s own $70.00 PST, a separate provincial tax with its own rules).^{[cra_pos][cra_rates]}

Taxable, zero-rated and exempt supplies

Most sales are taxable at the GST or HST rate; zero-rated supplies are taxable at 0%, so no tax is charged but the seller can still claim input tax credits, and exempt supplies carry no GST/HST and generally no input tax credits.^[cra_rc4022]

HST exempt items in Ontario

Ontario has no separate list of HST exempt items: the federal zero-rated and exempt categories above apply, and on top of them Ontario rebates its 8% provincial part at the till on books, children's clothing and footwear, children's car seats and booster seats, diapers, print newspapers and prepared food and drinks totalling $4 or less, so those items carry only 5%.^[on_pos] The HST calculator has a point-of-sale rebate option for them.

GST number in Canada: registering for a GST/HST account

A GST/HST number is your 9-digit Business Number followed by RT and a 4-digit account number, for example 123456789 RT 0001; RT identifies the GST/HST program account.^[cra_rc4022] You must register once your worldwide taxable sales pass $30,000 in a calendar quarter or over four consecutive quarters; below that you are a small supplier and may register voluntarily to claim input tax credits.^{[cra_register]} Run the test with your own quarters on the small supplier calculator. A receipt of $100 or more must show the supplier's GST/HST number before the buyer can claim the tax back.^[itc_regs]

Filing GST/HST returns: reporting periods and due dates

The CRA assigns an annual, quarterly or monthly reporting period by your annual taxable supplies, and returns are due one month after each monthly or quarterly period and three months after the fiscal year for annual filers.^[cra_rc4022]

Individuals with business income and a December 31 year end who file annually have until June 15 to file but must pay by April 30. Annual filers whose net tax was $3,000 or more in the previous year, and again in the current one, pay quarterly instalments. Small businesses with up to $400,000 of annual taxable revenue, GST/HST included, can elect the quick method, which applies a reduced remittance rate to sales instead of tracking input tax credits on most expenses.^[cra_rc4022]

GST/HST for households: the credit that became the CGEB

Consumers do not file GST/HST returns; low and modest income households instead receive the quarterly benefit that was the GST/HST credit until July 2026 and is now the Canada Groceries and Essentials Benefit.^[cgeb] Amounts and the next payment are on the GST payment dates page.

Common GST/HST mistakes

• Charging your own province's rate on goods shipped to a customer in another province.
• Showing HST as separate "GST" and "PST" lines; it is one tax.
• Treating zero-rated and exempt as the same thing: only zero-rated sales keep input tax credits.
• Using 15% for Nova Scotia after March 31, 2025.
• Waiting to register after crossing $30,000 in a single quarter: tax starts on the sale that crosses the line.