In Canada, three types of sales taxes are levied. These are as follows:
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 do not have either the HST or territorial sales taxes. Only the GST is collected. The three northern jurisdictions are heavily subsidized by the federal government, and its residents receive some additional tax concessions due to the high cost of living in the north.[1]
Separate Provincial Sales Taxes (PST) are collected in the provinces of Manitoba, Prince Edward Island, Quebec (Quebec Sales Tax or QST, French: Taxe de vente du Québec or TVQ), and Saskatchewan. Goods to which the tax is applied vary by province, as does the rate. Moreover, for those provinces whose provincial sales tax is applied to the combined cost and GST, provincial revenues decline or increase with respective changes in the GST. Of the provincial sales taxes, only the QST (and the HST) are value-added; the rest are cascading taxes.
| Province | Type | Prov. rate (%) | Combined fed./prov. rate (%) | Notes |
|---|---|---|---|---|
| Alberta | GST | 0 | 5 | There is a 4% tax on lodging. |
| British Columbia | HST | 7 | 12 |
Main article: Sales taxes in British Columbia
|
| Manitoba | GST + PST | 7 | 12[2] | |
| New Brunswick | HST | 8 | 13 | |
| Newfoundland and Labrador | HST | 8 | 13 | |
| Northwest Territories | GST | 0 | 5 | |
| Nova Scotia | HST | 10 | 15[3] | |
| Nunavut | GST | 0 | 5 | |
| Ontario | HST | 8 | 13 | |
| Prince Edward Island | GST + PST | 10.5 effective 10 nominal |
15.5 eff. 15 nom.[4] |
Provincial rate is nominally 10%, but is also applied to federal 5% GST. Effective provincial rate is 10.5%. |
| Quebec | GST + QST | 9.975 effective 9.5 nominal |
14.975 eff. 14.5 nom.[5] |
Provincial rate is nominally 9.5%, but is also applied to federal 5% GST. Effective provincial rate is 9.975%. |
| Saskatchewan | GST + PST | 5 | 10[6] | There is a separate 10% liquor consumption tax. The non-alcoholic portion of a restaurant meal is not taxed. |
| Yukon | GST | 0 | 5 |
| Book: Canada | |
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