Canada has the most fragmented sales-tax system of any developed country. Ten provinces and three territories collect at six different rates under three different regimes: HST in five provinces, GST plus a separate PST in four, and GST only in Alberta and the three territories. Quebec runs its own system (QST) on top of the federal GST. If you invoice across provincial lines, you have to get every line right.
This is a 2026 cheat sheet of every rate, every type, every registration threshold contractors care about, verified against the CRA rate table and the provincial sources for each line. Where older articles you may have read are wrong, this guide flags the correction.
Sales tax rates by province (2026)
Rates apply to taxable supplies of goods and services. Most contractor work is fully taxable.
| Province / territory | Type | Rate | Combined effective |
|---|---|---|---|
| Ontario | HST | 13% | 13% |
| British Columbia | GST + PST | 5% + 7% | 12% |
| Alberta | GST | 5% | 5% |
| Quebec | GST + QST | 5% + 9.975% | 14.975% |
| Saskatchewan | GST + PST | 5% + 6% | 11% |
| Manitoba | GST + RST | 5% + 7% | 12% |
| New Brunswick | HST | 15% | 15% |
| Nova Scotia | HST | 14%* | 14% |
| Newfoundland & Labrador | HST | 15% | 15% |
| Prince Edward Island | HST | 15%** | 15% |
| Northwest Territories | GST | 5% | 5% |
| Nunavut | GST | 5% | 5% |
| Yukon | GST | 5% | 5% |
* Nova Scotia HST was reduced from 15% to 14% effective April 1, 2025 (CRA Notice 342). Older invoicing templates often still calculate NS at 15%.
** PEI HST is 15%. Many older articles cite 17%; that figure is wrong and has never been correct. There is no 17% HST in Canada.
HST vs GST + PST: what changes for contractors
In HST provinces (ON, NB, NS, NL, PE), a single tax replaces both the federal GST and the provincial sales tax. You collect one rate, register with one authority (the CRA), and remit one return. The full HST is recoverable as an Input Tax Credit (ITC) if you are registered.
In GST + PST provinces (BC, MB, SK), you collect two separate taxes on most supplies. The 5% GST goes to the CRA on your GST/HST return; the PST goes to the province on a separate return. PST is generally not recoverable as an ITC; it is a cost. This is the single biggest reason cross-province pricing gets contractors in trouble: a $100 line in Ontario costs the customer $113; the same $100 line in Saskatchewan costs the customer $111 but you cannot recover the $6 PST on your inputs.
Manitoba calls its PST “Retail Sales Tax” (RST) on official forms. The rate is the same regardless of the name.
Quebec QST: pre-GST base, not stacked
Quebec runs QST at 9.975%, but it is calculated on the pre-GST base, not on the GST-inclusive total. Quebec changed this in 2013 to align with the rest of the country. Older invoice software that stacks QST on top of GST is wrong.
The combined effective rate in Quebec is therefore 14.975%, not the 15.5% that stacking would produce. Markup’s tax engine handles the pre-GST base calculation automatically.
When you have to register
GST/HST: $30,000 over four quarters
You must register for GST/HST when your taxable revenue exceeds $30,000 over four consecutive calendar quarters(or in a single quarter). Below that threshold, you are a “small supplier” and registration is optional. Public service bodies have a higher threshold.
Once you cross the threshold, you must register before your next taxable supply. Many contractors cross $30K without realizing it (a single $20K kitchen renovation plus a few smaller jobs in the same quarter can do it), and miss months of ITC claims by not registering promptly.
Provincial PST registration
Provincial registration thresholds are smaller and the rules vary by province.
- BC PST. Out-of-province sellers must register when BC-sourced revenue exceeds $10,000 over 12 months (rolling). In-province businesses must register at the first taxable sale.
- SK PST. There is no commercial small-supplier threshold. Out-of- province vendors selling tangible goods or taxable services in Saskatchewan must register regardless of sales volume. The $10,000 floor that appears in some older articles applies only to individuals selling craft items non-commercially.
- MB RST. Commercial sellers register before the first taxable sale. A separate $10,000 small-seller threshold applies to individuals selling goods non-commercially.
- QC QST. Resident vendors register at the same $30,000 threshold as GST/HST. Specified suppliers (such as non-resident digital sellers) register at any amount.
Input Tax Credits (ITCs): what you can claim back
Once you are GST/HST registered, you can claim Input Tax Credits for the GST or HST you paid on business inputs. The full federal/HST portion is recoverable; the provincial portion in non-harmonized provinces (BC PST, SK PST, MB RST) is not recoverable and remains a cost.
ITCs must be supported by a valid invoice from the supplier that includes the supplier’s GST/HST Business Number. An invoice missing the BN cannot support an ITC claim. ITCs can be claimed within four years of the original filing period (two years for large businesses).
Filing and remittance schedule
CRA sets your GST/HST remittance frequency based on annual taxable revenue:
- Annual: under $1.5M in taxable supplies. Return due 3 months after fiscal year end.
- Quarterly: $1.5M to $6M. Returns due 1 month after each quarter.
- Monthly: over $6M. Returns due 1 month after each month.
Contractors near the $1.5M threshold should be aware that crossing it shifts you from annual to quarterly filing, which can change your cash-flow rhythm meaningfully.
The Quick Method: a shortcut worth checking
Most small contractors qualify for the CRA Quick Method, which lets you remit a smaller percentage of taxable revenue instead of calculating ITCs line by line. The Quick Method rate for service providers in HST provinces is typically the HST rate minus 4-5 percentage points; for example, the Ontario Quick Method rate is 8.8% for a contractor with no purchases.
The Quick Method usually nets out in your favour when your recoverable GST/HST inputs are low (mostly labour-based work) and against you when your inputs are high (material-heavy projects). Eligibility is capped at $400,000 of taxable revenue. Run the math both ways before electing.
This article is general information for Canadian trades contractors, not tax advice. Tax rates and thresholds change. Before relying on any rate, threshold, or filing rule, confirm with the CRA rate table and your provincial tax authority for 2026, or consult a CPA licensed in your province. Markup is a software platform, not a tax firm.