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GST vs. HST vs. PST in Canada

Understand federal, harmonized and separate provincial sales taxes, including how to reverse a tax-inclusive price correctly.

Published by Beaver Ledger · Edited

Ordinary fully taxable purchases at current rates checked October 3, 2026; historical transactions and special products excluded.

GST is the federal goods and services tax. HST combines federal and provincial components in participating provinces. Other provinces may charge a separate provincial tax alongside GST, including Quebec's QST. The transaction and place-of-supply rules determine what applies.

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Location is more than the seller's address

GST/HST treatment depends on the type of supply and applicable place-of-supply rules. Do not choose a province solely from a shop's head office. Exempt and zero-rated supplies also differ from ordinary fully taxable purchases, so a general calculator cannot decide the classification for you.

Sources: CRA — GST/HST rates and place-of-supply rules

Example: adding and reversing Ontario HST

Assume an ordinary taxable Ontario purchase of $100 before tax at 13% HST. Tax is $13 and the total is $113. To recover the base from $113, divide by 1.13: $113 ÷ 1.13 = $100. Subtracting 13% of $113 instead would give $98.31, which is not the original base.

This example excludes rebates, exemptions, shipping complications and special products. Confirm the applicable rate for the actual transaction date.

Sources: CRA — GST/HST rates and place-of-supply rules

Separate taxes need separate attention

A displayed combined percentage is convenient for an ordinary estimate, but the legal bases and exemptions for GST and a provincial tax can differ. Keep the invoice's separate tax lines when you need records; a combined estimate is not a substitute for them.

The current calculator is not a historical-rate lookup. In particular, Nova Scotia's HST changed to 14% on April 1, 2025, so entering an older purchase under the current rate can be wrong.

Sources: CRA — GST/HST rates and place-of-supply rules

Before checking an invoice

Identify the date, destination, product or service and whether the price includes tax. If any of those are uncertain, settle them before comparing your result with the invoice.

  • Use add-tax mode for a pre-tax amount.
  • Use reverse mode for an inclusive total.
  • Allow for cent rounding when several items or tax components are rounded separately.

Sources checked for this editorial revision on October 3, 2026. Educational content from Beaver Ledger; no professional review is claimed. Methods and limitations · Editorial practices and corrections.