Goods and Services Tax

Goods and Services Tax (GST)

The Goods and Services Tax (GST) is Canada’s federal sales tax of 5% on most purchases nationwide. Some provinces blend GST with provincial tax into one Harmonized Sales Tax (HST) line. Others add a separate provincial tax on top: Provincial Sales Tax (PST), Retail Sales Tax (RST), or, in Quebec, Quebec Sales Tax (QST).

Basic groceries, prescription drugs, and many medical, dental, and educational services are zero-rated or exempt, which is why those receipt lines often show no sales tax.

Click Here for our lesson on How Canadian Taxes Impact Your Personal Finances

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