How to Calculate GST, HST & PST on Canadian Invoices
Canada has three sales taxes, five different combinations, and a rate for every province. Here's the plain-English version — with a worked example for each scenario — so your next invoice is correct the first time.
If you invoice Canadian customers, the single most common mistake is charging the wrong sales tax. Canada doesn't have one national rate — it has a federal tax (GST), provincial taxes (PST), and a blended version (HST) that some provinces use instead. Which one you charge depends entirely on where your customer is, not where you are.
This guide breaks down exactly what to charge, province by province, with the current 2026 rates and a worked dollar example for each of the three scenarios you'll run into.
GST = 5% federal tax, applies everywhere. HST = a single combined rate used by 5 provinces (you charge one number). PST/RST/QST = a separate provincial tax in BC, Saskatchewan, Manitoba and Quebec that sits alongside the 5% GST. Charge based on your customer's province.
The three taxes, explained
Before the rates, you need to know the three abbreviations that show up on Canadian invoices:
- GST (Goods and Services Tax) — a flat 5% federal tax that applies in every province and territory.
- HST (Harmonized Sales Tax) — used by five provinces that "harmonized" their provincial tax with the GST into one combined rate. You charge a single percentage and the government splits it behind the scenes.
- PST (Provincial Sales Tax) — a separate provincial tax charged in addition to the 5% GST. Saskatchewan and Manitoba call their version PST, BC calls it PST too, Quebec calls it QST, and Manitoba's is sometimes called RST. Functionally, for your invoice, it's a second line of tax.
2026 sales tax rates by province
Here is what you actually charge a customer in each province as of 2026:
| Province / Territory | Type | GST | PST/QST | Total |
|---|---|---|---|---|
| Alberta | GST only | 5% | — | 5% |
| British Columbia | GST + PST | 5% | 7% | 12% |
| Manitoba | GST + PST (RST) | 5% | 7% | 12% |
| Saskatchewan | GST + PST | 5% | 6% | 11% |
| Quebec | GST + QST | 5% | 9.975% | 14.975% |
| Ontario | HST | — | — | 13% |
| New Brunswick | HST | — | — | 15% |
| Newfoundland & Labrador | HST | — | — | 15% |
| Nova Scotia | HST | — | — | 14% |
| Prince Edward Island | HST | — | — | 15% |
| NWT / Nunavut / Yukon | GST only | 5% | — | 5% |
Nova Scotia reduced its HST to 14% in 2025. Always confirm the current rate with the CRA before filing — provincial rates do change.
Scenario 1 — GST-only province (e.g. Alberta)
This is the simplest case. You charge a flat 5% GST on the subtotal. Say you're billing a client in Calgary $1,000 for design work:
Subtotal: $1,000.00
GST (5%): $50.00
Invoice total: $1,050.00
Scenario 2 — HST province (e.g. Ontario)
In HST provinces you charge a single combined rate — no separate GST and PST lines. For an Ontario customer at 13% HST:
Subtotal: $1,000.00
HST (13%): $130.00
Invoice total: $1,130.00
On the invoice you show one tax line labelled "HST" with your HST number — not two.
Scenario 3 — GST + PST province (e.g. BC or Saskatchewan)
This is where most people get it wrong. In BC, Saskatchewan, Manitoba and Quebec you charge two separate taxes, and — importantly — both are calculated on the original pre-tax subtotal. You do not charge PST on top of the GST-inclusive amount.
Subtotal: $1,000.00
GST (5% of $1,000): $50.00
PST (7% of $1,000): $70.00
Invoice total: $1,120.00
How to know which province's tax to charge
The rule is the place of supply — generally where the customer receives the goods or service. For most service businesses invoicing remotely, that means:
- Look at your customer's billing province, not your own.
- Apply that province's rate from the table above.
- If you sell physical goods shipped somewhere, the destination province usually governs.
So an Alberta freelancer billing an Ontario client charges 13% Ontario HST — not 5% Alberta GST. This trips up almost everyone the first time.
Do you even need to charge GST/HST?
You only register for and charge GST/HST once your business passes the small supplier threshold: CAD $30,000 in worldwide taxable revenue over four consecutive calendar quarters. Below that you generally don't charge it (though you can register voluntarily to claim input tax credits). PST registration thresholds vary by province and are often lower or zero.
Let GetInvoiceMaker calculate it for you
Pick the province, enter your subtotal, and the correct GST / HST / PST lines are added automatically. Free, no signup, instant PDF.
What a compliant Canadian invoice must show
For your customer to claim their input tax credit, the CRA requires specific fields on invoices over $30 and $150. At minimum, include:
- Your business name and the date
- Your GST/HST registration number (this is mandatory — without it the customer can't claim credits)
- A clear description of the goods or services
- The subtotal, each tax shown separately with its rate, and the total
- For invoices over $150: the buyer's name and your payment terms