Plain-language guides
Canadian tax guides
Short, sourced explanations of GST, HST, PST and QST, running a GST/HST-registered business, income tax and benefits — each one starts with the answer.
Sales tax
- GST vs HST vs PST vs QST: What’s the Difference? GST is the 5% federal sales tax charged everywhere in Canada. HST combines GST with a provincial part into one tax (13–15%). PST, RST and QST are separate provincial taxes charged next to GST in B.C., Saskatchewan, Manitoba and Quebec.
- How to Calculate Sales Tax in Canada (With Examples) Multiply the price before tax by the tax rate to get the tax, or by 1 plus the rate to get the total. In Ontario, $80 × 0.13 = $10.40 HST, and $80 × 1.13 = $90.40 total.
- How to Calculate Tax Backwards From a Total (Reverse GST/HST) Divide the total by 1 plus the tax rate. In Ontario, $113 ÷ 1.13 = $100 before tax, so the HST is $13. Subtracting 13% of the total ($14.69) would be wrong.
- GST and QST in Quebec: Rates and How to Calculate Them Quebec charges 5% GST plus 9.975% QST, both on the price before tax, for 14.975% combined. On $100 you pay $5.00 GST and $9.98 QST, for $114.98.
Business
- Do You Need to Register for GST/HST? The $30,000 Rule Explained You must register once your worldwide taxable sales pass $30,000 in one calendar quarter or over four consecutive quarters. Below that you are a small supplier and registering is optional — except taxi and ride-sharing drivers, who must always register.
- Which GST/HST Rate to Charge Customers in Other Provinces Charge the GST/HST rate of the province where your customer receives the goods or services — 13% HST for an Ontario customer even if your business is in Alberta. Charge PST or QST only if you are registered for that province’s tax.
- Input Tax Credits (ITCs) Explained for Canadian Businesses Input tax credits let a GST/HST registrant recover the GST/HST paid on purchases used in the business. You subtract them from the tax you collected: collect $5,000, claim $1,800 of ITCs, and you remit $3,200.
- Zero-Rated vs Exempt Supplies: What’s the Difference? Both have no GST/HST on the price. The difference is for the seller: zero-rated supplies (like basic groceries) are taxable at 0%, so the seller can claim input tax credits. Exempt supplies (like residential rent) are outside the system, so the seller cannot.
- GST/HST Filing Deadlines and Reporting Periods Monthly and quarterly GST/HST returns are due one month after the period ends; annual returns three months after year-end. Sole proprietors with business income and a December 31 year-end file by June 15 but pay by April 30.
- The GST/HST Quick Method: How It Works and When It Pays Under the Quick Method you charge customers the normal GST/HST but remit a lower fixed percentage of your tax-included sales — 8.8% for an Ontario service business — instead of tax collected minus input tax credits. It pays off when your taxable expenses are low.
Income tax
- Canada Income Tax Brackets 2026: Federal and Provincial Federal tax for 2026 is 14% on the first $58,523 of taxable income, then 20.5%, 26%, 29% and 33% above $258,482. Provincial tax is added on top, using each province’s own brackets.
- CPP, CPP2 and EI Deductions in 2026: Rates and Maximums In 2026 employees pay 5.95% CPP on earnings between $3,500 and $74,600 (max $4,230.45), 4% CPP2 on earnings from $74,600 to $85,000 (max $416), and 1.63% EI on up to $68,900 (max $1,123.07). Quebec has QPP, a lower EI rate and QPIP instead.
Benefits & housing
- Canada Groceries and Essentials Benefit: The New GST Credit Explained In July 2026 the GST/HST credit became the Canada Groceries and Essentials Benefit, with payments 25% higher for five years. For July 2026 to June 2027 it pays up to $679 for a single person, $890 for a couple and $234 per child.
- First-Time Home Buyers’ GST Rebate: Up to $50,000 on a New Home First-time buyers of a newly built home can get back the full 5% GST — up to $50,000 — on homes up to $1 million, phasing out to nothing at $1.5 million. The agreement must be signed on or after March 20, 2025 and before 2031.
- Ontario and Toronto Land Transfer Tax Explained (2026) Ontario land transfer tax runs from 0.5% to 2.5% on slices of the price — $6,475 on a $500,000 home. Toronto charges its own matching tax on top, so Toronto buyers pay roughly double. First-time buyers get up to $4,000 back from Ontario and $4,475 from Toronto.