GST HST Calculator Canada — Calculate Federal Sales Tax
Calculate GST and HST on purchases across all Canadian provinces. See which provinces charge GST only HST or PST plus GST.
Canada sales tax system varies by province: some charge only 5% federal GST others charge combined HST (13-15%) and some charge separate GST + provincial PST. Alberta has the lowest sales tax at 5% GST only while Nova Scotia and PEI have the highest at 15% HST. Understanding these differences helps with purchase planning especially for big-ticket items where the tax difference can be hundreds or thousands of dollars.
How much is sales tax on a $50000 car in Ontario?
In Ontario (13% HST): $50000 x 13% = $6500 in HST. In Alberta (5% GST only): $50000 x 5% = $2500. In BC (5% GST + 7% PST = 12%): $50000 x 12% = $6000. Buying in Alberta saves $4000 compared to Ontario. However most provinces charge tax based on where you register the vehicle not where you buy it so cross-border shopping has limited benefit for vehicles.
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How Tax Calculation Works
Income tax is calculated on your total taxable income after deducting eligible exemptions and deductions from your gross income. The tax is applied progressively — you pay a lower rate on initial income slabs and higher rates only on income that exceeds each threshold. This means moving into a "higher tax bracket" does not mean your entire income is taxed at the higher rate. Understanding marginal vs effective tax rate is crucial: your marginal rate applies only to the last rupee earned, while your effective rate is the average across all slabs.
Tax-Saving Strategies
Under the old regime, maximize deductions: Section 80C allows up to Rs 1.5 lakh through PPF, ELSS, EPF, and life insurance. Section 80D covers health insurance premiums up to Rs 25,000 (Rs 50,000 for senior citizens). Section 80CCD(1B) offers an additional Rs 50,000 deduction for NPS contributions. Home loan interest up to Rs 2 lakh is deductible under Section 24. Under the new regime, the Rs 75,000 standard deduction and lower slab rates may save you more if your total deductions are below Rs 3.75 lakh. Calculate under both regimes before choosing.
Key Information
| Parameter | Details |
|---|---|
| GST (Federal) | 5% across all provinces |
| HST (ON NB NL NS PEI) | 13% - 15% combined |
| GST + PST (BC SK MB QC) | 5% GST + 6-9.975% PST |
| Alberta | 5% GST only (no provincial) |
Frequently Asked Questions
How much is sales tax on a $50000 car in Ontario?
In Ontario (13% HST): $50000 x 13% = $6500 in HST. In Alberta (5% GST only): $50000 x 5% = $2500. In BC (5% GST + 7% PST = 12%): $50000 x 12% = $6000. Buying in Alberta saves $4000 compared to Ontario. However most provinces charge tax based on where you register the vehicle not where you buy it so cross-border shopping has limited benefit for vehicles.
Which province has the lowest sales tax?
Alberta has the lowest at 5% GST only with no provincial sales tax. This makes Alberta the cheapest province for purchases especially big-ticket items. The territories (Yukon NWT Nunavut) also charge only 5% GST. British Columbia at 12% combined and Saskatchewan at 11% are next lowest. Nova Scotia PEI and Newfoundland at 15% HST are highest.
Do businesses get GST/HST back?
Yes registered businesses can claim Input Tax Credits (ITCs) to recover GST/HST paid on business expenses and purchases. This means GST/HST is effectively only paid by the end consumer not by businesses in the supply chain. To claim ITCs your business must be registered for GST/HST (mandatory if revenue exceeds $30000 in any 4 consecutive quarters).
Which tax regime should I choose — old or new?
Choose the new regime if your total deductions are below Rs 3.75 lakh. Choose the old regime if you claim HRA, 80C (Rs 1.5L), 80D, home loan interest, and NPS totaling more than Rs 3.75 lakh. Salaried employees can switch every year.
Is income up to Rs 12 lakh really tax-free?
Under the new regime for FY 2025-26, income up to Rs 12 lakh is effectively tax-free due to Section 87A rebate. After Rs 75,000 standard deduction, taxable income is Rs 11.25 lakh which qualifies for full rebate. However, income even slightly above Rs 12 lakh loses this entire benefit.
How can I save more tax legally?
Under the old regime, maximize 80C (Rs 1.5L via PPF, ELSS, EPF), 80D (Rs 25K-50K for health insurance), 80CCD(1B) (Rs 50K for NPS), HRA exemption, and home loan interest (Rs 2L under Section 24).
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Last updated: March 2026