GST vs HST vs PST: What's the Difference? (2026 Canada Guide)

Canada has three sales taxes, and figuring out which one applies to you can be confusing, especially if you're a non-resident doing business here. The difference between GST, HST, and PST depends entirely on the province. GST is a 5% federal tax charged everywhere. PST is a separate provincial tax added on top of GST in four provinces. HST is a single blended tax that merges the two in five provinces.

Get this wrong and it affects your pricing, your customs clearance, and your cash flow. This guide breaks down each tax, shows the current 2026 rate for every province, and explains how all three apply when you import into Canada.

GST vs HST vs PST at a Glance

The fastest way to see the difference is side by side. GST is federal and applies nationwide. PST is provincial and stacks on top of GST. HST combines both into one tax collected by the federal government.

In short:

• GST is a 5% federal value-added tax collected by the CRA and charged across all of Canada.
• PST is a provincial tax added on top of GST (rates of 6% to 9.975%), administered by each province in BC, Manitoba, Saskatchewan, and Quebec.
• HST blends GST and the provincial portion into one CRA-collected tax (13% to 15%) in Ontario, Nova Scotia, New Brunswick, Newfoundland & Labrador, and PEI.

Every province and territory uses one of these three setups: GST only, GST plus PST, or HST. Once you know which province you're selling into or importing through, you know which taxes apply. You can calculate your duties and taxes for a specific shipment in a couple of minutes.

What Is GST (Goods and Services Tax)?

GST is a 5% federal value-added tax applied to most goods and services across Canada, including imports. It's the one tax that shows up in every province and territory, and it has stayed at 5% since 2008.

In some parts of the country, GST is the only sales tax you'll pay. Four jurisdictions have no provincial sales tax at all: Alberta, Northwest Territories, Nunavut, and Yukon. In those four places, the total sales tax on most goods and services is a flat 5%. Everywhere else, GST is either bundled into HST or joined by a separate PST. GST also applies to goods imported into Canada, which we cover in detail further down.

What Is PST (Provincial Sales Tax)?

PST is a separate provincial sales tax charged on top of the 5% GST. It exists in four provinces, each setting its own rate and running its own registration system.

• British Columbia: 7% PST (12% total with GST)
• Manitoba: 7% Retail Sales Tax, or RST (12% total with GST)
• Saskatchewan: 6% PST (11% total with GST)
• Quebec: 9.975% Quebec Sales Tax, or QST (14.975% total with GST)

PST is calculated separately from GST on the pre-tax price, and the two taxes appear as their own line items on a receipt. Registration is handled province by province, not through the federal government. If you sell into British Columbia and Saskatchewan, for example, you register for PST with each province individually, in addition to your federal GST/HST registration.

What Is HST (Harmonized Sales Tax)?

HST combines GST and the provincial portion into a single tax, collected federally by the Canada Revenue Agency. Five provinces use it, and the goal is to simplify collection by charging one tax instead of two.

• Ontario: 13%
• Nova Scotia: 14%
• New Brunswick: 15%
• Newfoundland and Labrador: 15%
• Prince Edward Island: 15%

One recent change to watch: Nova Scotia dropped its HST from 15% to 14% on April 1, 2025, when the provincial component fell from 10% to 9%. If you're working from older figures, update them. As for when GST and PST first became HST, the harmonized tax launched in 1997 for the first participating provinces, with Ontario and British Columbia adopting it in 2010 (BC later reversed back to a separate GST plus PST in 2013).

Sales Tax Rates by Province (2026)

Below is every province and territory with its current sales tax breakdown for 2026. Use it as your quick reference.

The pattern breaks down into three groups:

• 5% total (GST only): Alberta, Northwest Territories, Nunavut, and Yukon charge only the federal GST.
• 11% to 14.975% total (GST + PST): British Columbia and Manitoba land at 12%, Saskatchewan at 11%, and Quebec at 14.975% once its 9.975% QST is added.
• 13% to 15% total (HST): Ontario is lowest at 13%, Nova Scotia sits at 14%, and New Brunswick, Newfoundland & Labrador, and PEI are each at 15%.

These are the standard rates on most goods and services. Some items, such as basic groceries, prescription drugs, and certain medical devices, are zero-rated or exempt.

How GST, HST, and PST Apply to Imports into Canada

When you import goods into Canada, you pay 5% GST on the value of the shipment, no matter which province the goods are destined for. This is separate from any customs duties you may owe. Provincial PST and HST are generally not collected at the border by the Canada Border Services Agency, though they can apply later when the goods are sold.

GST on imports catches a lot of first-time importers off guard, so the mechanics are worth spelling out:

• You pay 5% GST on the declared value of the imported shipment.
• You also pay 5% GST on the customs clearance fee. If your clearance fee is $200, that's an extra $10 in GST.
• If you import into an HST province, you still only pay the 5% federal GST at the border, not the full HST rate.

For a full breakdown of how the numbers stack up, see our guide on how duties and taxes are calculated on imports into Canada. Surprise charges at delivery are one of the most common importer complaints, and most are avoidable once you understand the tax base. Our guide on how to avoid surprise customs fees walks through the rest.

Not sure what a specific shipment will cost you? Get an instant duty and tax estimate before you ship, so there are no surprises when it reaches the border.

Registering for and Reclaiming GST/HST

If you sell more than $30,000 per year in Canada, you must register for GST/HST and charge it to your customers. Registering also lets you claim back the GST you pay on imports, which is why many smaller businesses register voluntarily.

Typically the end customer pays the applicable sales tax. But as an importer, you often pay GST up front at the border and need a way to recover it. Two paths exist:

• If you're registered for GST/HST, you reclaim the import GST by claiming an input tax credit (ITC) on your GST/HST return. Note that once you register for GST, you're automatically registered for HST as well.
• If you're a non-resident importer and not registered, you may still recover the GST through a Canadian purchaser who is GST/HST registered. You provide your import documentation, and they claim the ITC on your behalf.

Even if you qualify as a small supplier earning under $30,000 a year, voluntary registration is often worth it once you're importing regularly, because the ITCs offset the GST you pay on every shipment. Our guide to GST for small businesses in Canada covers the mechanics, and if you're based outside Canada, start with becoming a non-resident importer.

How Canada's System Compares to US Sales Tax

Unlike Canada, the United States has no federal sales tax. Instead, individual states charge their own sales taxes, and those do not apply to imports.

That's the main structural difference. In Canada, the federal GST reaches every province and applies at the border on imports. In the US, sales tax is a state-level, point-of-sale charge that importers don't pay on the goods coming in. US importers pay duties instead, which range from 0% to 37% depending on the product, with an average of around 6%.

Frequently Asked Questions

Are HST and GST the same?

No, but HST includes GST. HST is a single harmonized tax that combines the 5% federal GST with a provincial portion. So in an HST province like Ontario, the 13% HST already contains the 5% you'd otherwise pay as standalone GST.

Is HST the same as PST and GST?

HST replaces the need to charge GST and PST separately. In HST provinces, you charge one blended tax instead of two. In non-HST provinces, GST and PST are charged and reported separately.

What's the difference between PST and HST?

PST is a standalone provincial tax charged on top of GST, with each province collecting and administering its own. HST merges the provincial portion into a single federally collected tax. PST provinces show two taxes on a receipt; HST provinces show one.

Do I pay PST and GST, or HST?

It depends on the province. In BC, Manitoba, Saskatchewan, and Quebec, you pay GST plus a separate provincial tax. In Ontario, Nova Scotia, New Brunswick, Newfoundland & Labrador, and PEI, you pay a single HST. In Alberta and the three territories, you pay only the 5% GST.

What does PST stand for?

PST stands for Provincial Sales Tax. In Manitoba it's called the Retail Sales Tax (RST), and in Quebec it's the Quebec Sales Tax (QST), but all three are provincial taxes charged in addition to the federal GST.

The Bottom Line

Which sales tax you deal with comes down to the province. GST applies everywhere at 5%, PST is added on top in British Columbia, Manitoba, Saskatchewan, and Quebec, and HST rolls both into one tax in the five harmonized provinces. On imports, the rule is simpler: you pay 5% GST at the border regardless of destination.

The taxes are only half the equation. Duties, clearance fees, and correct HS classification all factor into what a shipment actually costs. That's where a customs broker earns its keep. BorderBuddy's licensed brokers handle the classification, duty and tax calculation, and CBSA filing so your goods clear quickly and you're not left guessing at the total. Get a free duty and tax estimate or talk to a broker to get started.