How to Calculate GST/HST on Invoices in Every Canadian Province

To choose invoice taxes, first establish your registration obligations, where the supply is made, and whether the goods or services are taxable. Provincial rates are one part of that decision. This guide provides a rate reference and examples; it does not determine taxability for every business.

Understanding the Three Tax Systems

Canada has three sales tax structures depending on the province:

• GST (Goods and Services Tax) — A 5% federal tax applied across Canada. Some provinces only charge GST with no provincial component.
• HST (Harmonized Sales Tax) — A combined federal and provincial tax used in Ontario, the Atlantic provinces, and PEI. The rate varies from 13% to 15%.
• GST + PST/QST — In BC, Saskatchewan, Manitoba, and Quebec, the federal GST is charged separately from a provincial sales tax (PST or QST).

Tax Rates by Province

Reference rates reviewed September 19, 2026. Nova Scotia HST is 14% for current supplies; its rate decreased on April 1, 2025. Provincial sales taxes apply only to taxable goods and services.

B.C. update: planned PST expansion paused

On September 18, 2026, B.C. announced a pause to the PST expansion previously scheduled for October 1. This affects the planned expansion to specified accounting and bookkeeping, architectural, engineering and geoscience, security, and non-residential real estate services.

The government announcement says exemptions for the affected services will be maintained through a temporary regulation; it gives no new implementation date. Check B.C.’s updated official notice before changing invoice tax settings for these services. This pause does not remove PST from goods or services that were already taxable.

Calculation Examples

Example 1: Ontario (HST Province)

You sell a consulting service for $1,000 to a client in Ontario.

• Subtotal: $1,000.00
• HST (13%): $130.00
• Total: $1,130.00

Example 2: British Columbia (GST + PST)

You provide $2,500 of web design services in BC without taxable software, hosting, goods, or other bundled taxable elements. This example assumes GST registration.

• Subtotal: $2,500.00
• GST (5%): $125.00
• PST on the web design service in this example: $0.00
• Total: $2,625.00

For bundled taxable elements, check the BC guidance on web design services.

Example 3: Alberta (GST Only)

You invoice a client in Alberta for $500 of photography services.

• Subtotal: $500.00
• GST (5%): $25.00
• Total: $525.00

When Do You Need to Register?

Many small businesses use the $30,000 small-supplier threshold, but exceptions and timing rules apply. Check the CRA registration rules for your circumstances before charging GST/HST.

Input Tax Credits (ITCs)

Eligible GST/HST registrants may recover GST/HST paid on qualifying business purchases through input tax credits. Eligibility, business use, and supporting records matter; not every tax or expense qualifies.

Choose the place of supply before the rate

A Quebec business designing a website for a business whose relevant address is in Ontario can need to charge Ontario HST. Using the seller's province alone would give the wrong result for that example.

The tax province defaults to the client's Canadian province when provided, then your business province. Review it for each sale and use the invoice's tax-province field to override it when needed. Your registration, place of supply, and the goods or services determine which taxes apply. Read the CRA place-of-supply rules and current rate reference.

Let Clear Bill Handle the Math

For CAD invoices, Clear Bill calculates the rates for the selected tax province and the tax controls on each line item. Review those choices before issuing the invoice. A USD invoice currently has a manually entered tax amount; using USD does not itself make a supply exempt from Canadian tax.

Stop calculating taxes manually

Choose the applicable invoice taxes, then let Clear Bill calculate the amounts.