GST/HST Rates by Province in Canada

GST/HST rates in Canada are not a single national number: the federal Goods and Services Tax applies across the country, some provinces replace it with a combined Harmonized Sales Tax, and others add a separate provincial sales tax on top. For a sole proprietor, what you actually charge depends on your province of registration, the type of supply you make, and where your customer is located. The sections below explain how the system is structured today, how to confirm the current rate for your province, and what to check before you issue an invoice. This is general information, not tax advice.

How GST and HST fit together in Canada

The GST is a federal value-added tax administered by the Canada Revenue Agency (CRA). It applies to most taxable supplies of goods and services made in Canada at one rate nationwide, and the current rate is published on the CRA website. In participating provinces, the federal and provincial governments have harmonized their sales taxes into a single HST. The HST is also administered by the CRA, so a registered business collects both portions under one GST/HST account tied to its Business Number (BN).

In provinces that have not harmonized, a separate retail sales tax may apply alongside the GST. That provincial tax — whether it is called PST, RST or QST — is generally administered by the province rather than the CRA, which means separate registration, separate remittance, and separate rules from your federal account.

Which provinces use HST, GST plus PST, or GST only

The table below summarizes the general structure as of the current tax year. Rates and provincial components can change, so always confirm the current combined rate and the correct treatment on the CRA website or the relevant provincial finance website before you invoice.

In practice, this means an HST province has one combined rate you apply on your invoices, while a GST-only province has no provincial sales tax to add. The GST plus provincial tax provinces sit in between: you may need to register separately with the province.

Why your customer's location can change the tax you charge

Under the CRA's place-of-supply rules, the tax you charge is generally based on where a supply is considered to be made, not simply on where your business is located. For services, the rules typically point to the recipient's address. For goods, the answer often depends on where the goods are delivered and whether the buyer takes possession in your province. For in-person services, such as repairs or personal care, it usually depends on where the service is performed.

That is why a sole proprietor registered in an HST province may still charge GST only on some sales into a non-HST province, and why an Alberta-based consultant serving an Ontario client may need to charge HST. Review the rules for your specific supply type and confirm them with the CRA. A useful starting point is Do I need to charge GST/HST?

Small supplier status and registration

Many new sole proprietors do not have to register for GST/HST at all. If you are a small supplier — your taxable supplies stay under the threshold the CRA sets — registration is generally optional until you cross that line. The rules for when small supplier status ends, and how the measurement periods work, are set out on the CRA website, so confirm the current threshold and timing before you register.

Registration is often worthwhile even when it is optional, because it lets you claim back the GST/HST you pay on business purchases. If you sell mainly to other registered businesses, your customers can generally claim that tax back too, so it is not a competitive disadvantage. More detail: Small supplier status in Canada.

Collecting, remitting, and claiming input tax credits

Once registered, you charge the applicable GST/HST on your taxable supplies, hold that money separately, and remit it to the CRA through regular or annual returns. The filing frequency assigned to your account depends on the size of your taxable revenues, and the CRA sets it when you register. Because the tax you collect is not your revenue, you report business income on your income tax return net of GST/HST.

On the other side of the ledger, you can claim input tax credits (ITCs) to recover the GST/HST paid on eligible business expenses. To support ITCs, keep receipts that show the supplier's GST/HST number and the amount of tax charged. See How to file a GST/HST return, Input tax credits explained, and the T2125 explained for how it all lines up with your income tax filing.

How to confirm the current rate

Sales tax rates do change: provinces have adjusted their HST components and their separate provincial taxes in the past and can do so again. Rather than relying on an old invoice, a rate you remember, or software you have not updated, verify the current numbers regularly.

• Confirm your province of registration and whether it uses HST, GST plus a provincial tax, or GST only.
• Apply the place-of-supply rules to each sale rather than assuming your home rate always applies.
• Check the CRA's GST/HST pages for the current federal and harmonized rates before invoicing.
• Keep GST/HST collected in a separate account from your business revenue.

Your GST/HST account is separate from provincial business name registration and licensing, which are handled by your province or territory. If you are still setting up, start with how to report self-employment income in Canada to see where the pieces fit together.