HST (Harmonised Sales Tax)

$$\text{HST Amount} = \text{Net Price} \times \frac{\text{HST Rate}}{100}$$

Use the HST (Harmonised Sales Tax) Calculator → Try the HST (Harmonised Sales Tax) Quiz →

What is HST (Harmonised Sales Tax)?

HST (Harmonised Sales Tax) is a blended federal-provincial consumption tax used in five Canadian provinces. Rather than collecting the 5% federal GST and a separate provincial sales tax (PST) in two distinct streams, participating provinces merged both into a single rate administered by the Canada Revenue Agency (CRA). Ontario applies 13% (5% federal + 8% provincial); New Brunswick, Newfoundland and Labrador, Nova Scotia, and Prince Edward Island each apply 15% (5% federal + 10% provincial).

Like GST and VAT, HST is a multi-stage tax with input tax credits. Registered businesses collect HST on taxable sales and recover it on business purchases by claiming Input Tax Credits (ITCs). Only end consumers bear the full economic cost, since they cannot reclaim HST. The calculation formula is identical to GST and VAT - the only differences are the rate and the fact that both the federal and provincial components arrive in a single charge.

When to use HST (Harmonised Sales Tax)

Use HST rates when invoicing customers in Ontario, New Brunswick, Newfoundland and Labrador, Nova Scotia, or Prince Edward Island. For customers in Alberta, British Columbia, Manitoba, Quebec, or Saskatchewan, apply the 5% federal GST separately alongside any applicable provincial tax - those provinces do not participate in the harmonised system.

Worked examples for HST (Harmonised Sales Tax)

This table quickly gives you the overview you need to understand HST (Harmonised Sales Tax) and its most important comparisons.

Province	HST rate	Net price	HST amount	Gross price
Ontario	13%	CA$100	CA$13	CA$113
New Brunswick	15%	CA$100	CA$15	CA$115
Newfoundland and Labrador	15%	CA$100	CA$15	CA$115
Nova Scotia	15%	CA$100	CA$15	CA$115
Prince Edward Island	15%	CA$100	CA$15	CA$115

Common pitfalls

The most common mistake is applying HST to a province that does not participate in the harmonised system. Alberta has no provincial sales tax at all - only the 5% federal GST applies. British Columbia, Manitoba, and Saskatchewan each collect a separate PST alongside federal GST; the rates are not combined and the PST is administered provincially, not by the CRA. Quebec uses its own QST (Quebec Sales Tax) at 9.975% on top of the federal 5% GST - also administered separately.

Frequently asked questions about HST (Harmonised Sales Tax)

Which Canadian provinces use HST?

Five provinces participate in the harmonised system: Ontario (13%), New Brunswick (15%), Newfoundland and Labrador (15%), Nova Scotia (15%), and Prince Edward Island (15%). Alberta, British Columbia, Manitoba, Quebec, and Saskatchewan do not use HST - each applies the federal GST alongside its own provincial tax structure.

What is the difference between HST and GST in Canada?

GST is the 5% federal tax that applies across all Canadian provinces and territories. HST replaces GST in five participating provinces by merging the federal and provincial portions into one combined rate. In non-participating provinces, businesses charge the federal GST separately from any applicable provincial tax, and may need to file two separate returns.

Can businesses recover HST paid on their purchases?

Yes. Businesses registered for HST claim Input Tax Credits (ITCs) for the HST paid on business-related purchases and expenses. This offsets the HST collected on sales, so only the net difference is remitted to the CRA. End consumers who are not registered for HST cannot claim ITCs and bear the full cost.

Test your knowledge

Quiz: how well do you know HST?

5 questions · ~2 min

1. Ontario's 13% HST rate is made up of which two components?

ℹ The definition states Ontario applies 13% HST composed of 5% federal and 8% provincial. All five HST provinces share the same 5% federal component - only the provincial portion differs.

2. A client in New Brunswick is invoiced CA$500 net. HST is 15%. What is the gross (HST-inclusive) invoice total?

ℹ CA$500 x 1.15 = CA$575. The examples table confirms New Brunswick applies 15% HST: a CA$100 net price becomes CA$115 gross, so the same rate applied to CA$500 gives CA$575.

3. Which of the following provinces does NOT participate in the HST system?

ℹ British Columbia applies the 5% federal GST separately alongside its own provincial sales tax (PST) - it does not participate in the harmonised system. Ontario, Nova Scotia, and New Brunswick are all HST provinces.

4. What is a key operational advantage of HST over separate GST plus PST for businesses?

ℹ The definition notes HST is administered by the CRA rather than split between federal and provincial authorities. Businesses in HST provinces file one return and make one remittance, whereas non-participating provinces require separate federal and provincial filings.

5. A registered Nova Scotia business paid CA$230 HST on purchases and collected CA$575 HST on sales this quarter. How much must it remit to the CRA?

ℹ Businesses remit only the net HST - collected minus recoverable ITCs. CA$575 collected minus CA$230 paid = CA$345 net remittance. This input tax credit mechanism is what prevents HST from cascading through the supply chain.