Provinces with Lowest Sales Tax in Canada 2026
Alberta stands alone as Canada's only province with no provincial sales tax. Compare PST, GST, and HST rates across all 13 provinces and territories.
Last Updated: January 2026 | Source: Canada Revenue Agency and Provincial Tax Authorities
Table of Contents
Quick Comparison: All Provincial Sales Tax Rates 2026
| Province/Territory | Tax Type | Provincial Rate | Federal GST | Total Rate |
|---|---|---|---|---|
| Alberta | GST only | 0% | 5% | 5% |
| Yukon | GST only | 0% | 5% | 5% |
| Northwest Territories | GST only | 0% | 5% | 5% |
| Nunavut | GST only | 0% | 5% | 5% |
| Saskatchewan | GST + PST | 6% | 5% | 11% |
| British Columbia | GST + PST | 7% | 5% | 12% |
| Manitoba | GST + PST | 7% | 5% | 12% |
| Ontario | HST | 8% | 5% | 13% |
| Quebec | GST + QST | 9.975% | 5% | 14.975% |
| New Brunswick | HST | 10% | 5% | 15% |
| Newfoundland & Labrador | HST | 10% | 5% | 15% |
| Nova Scotia | HST | 10% | 5% | 15% |
| Prince Edward Island | HST | 10% | 5% | 15% |
Understanding GST, PST, and HST
Canada's sales tax system can be confusing because different provinces use different structures. Here's what each means:
GST (Goods and Services Tax)
The federal sales tax of 5% that applies in all provinces and territories. This is collected by the Canada Revenue Agency and goes to the federal government.
PST (Provincial Sales Tax)
An additional provincial tax collected separately from GST. Used in British Columbia (7%), Saskatchewan (6%), and Manitoba (7%). Alberta and the territories have no PST.
HST (Harmonized Sales Tax)
A combined federal-provincial tax that merges GST and PST into one rate. Used in Ontario (13%), the Atlantic provinces (15%), and formerly British Columbia. Administered by the CRA, with provincial portion remitted to provinces.
QST (Quebec Sales Tax)
Quebec's unique provincial sales tax at 9.975%. Unlike other provinces, QST is administered by Revenu Quebec rather than the CRA, and is calculated on the GST-included price (making the effective combined rate 14.975%).
Provinces and Territories with Lowest Sales Tax
1 Alberta - 5% (GST Only)
Alberta is Canada's only province with zero provincial sales tax. This policy has been in place since Alberta joined Confederation in 1905 and remains a cornerstone of the province's economic identity.
Why Alberta Has No PST
- Oil & gas revenue: Historically, resource royalties have funded provincial programs that other provinces fund through PST
- Political commitment: Successive governments have maintained the no-PST policy as a competitive advantage
- Economic diversification tool: Attracts businesses and residents from higher-tax provinces
Real Savings for Albertans
On $50,000 of annual taxable spending, an Albertan pays $2,500 in sales tax. The same spending in Ontario would cost $6,500 in sales tax. That's $4,000 per year in savings.
2-4 Territories - 5% (GST Only)
The three northern territories (Yukon, Northwest Territories, and Nunavut) also charge only the federal 5% GST with no territorial sales tax.
Why Territories Don't Have Sales Tax
- High cost of living: Adding sales tax would further burden residents who already face elevated costs for goods
- Small populations: Administrative costs of collecting territorial sales tax would be disproportionately high
- Federal transfers: Territorial governments receive significant federal funding to compensate for limited tax bases
Note: While territorial sales taxes are low, the cost of goods is significantly higher in northern communities due to transportation costs. A $5 item in southern Canada might cost $10-15 in remote northern locations.
5 Saskatchewan - 11% (5% GST + 6% PST)
Saskatchewan has the lowest PST rate among provinces that levy one, at just 6%. Combined with the 5% federal GST, the total rate is 11%.
Saskatchewan PST Details
- PST expanded to include restaurant meals and snack foods in 2017
- Children's clothing remains PST-exempt
- Used vehicles are taxed based on the greater of purchase price or book value
Sales Tax Savings Calculator
Calculate Your Provincial Sales Tax
Enter your annual spending on taxable goods to see how much you'd pay in each province.
$2,500
Lowest - GST only
$5,500
6% PST
$6,500
13% HST
$7,488
9.975% QST
$7,500
15% HST - Highest
$5,000
Per year
Impact on Major Purchases
Sales tax differences become especially significant on large purchases. Here's how much you'd pay on common big-ticket items in different provinces:
| Province | Tax Rate | Tax Amount | vs Alberta |
|---|---|---|---|
| Alberta | 5% | $2,250 | - |
| Saskatchewan | 11% | $4,950 | +$2,700 |
| Ontario | 13% | $5,850 | +$3,600 |
| Quebec | 14.975% | $6,739 | +$4,489 |
| Nova Scotia | 15% | $6,750 | +$4,500 |
| Province | Tax Amount | Savings vs Ontario |
|---|---|---|
| Alberta | $1,500 | Save $2,400 |
| Saskatchewan | $3,300 | Save $600 |
| British Columbia | $3,600 | Save $300 |
| Ontario | $3,900 | - |
| Nova Scotia | $4,500 | Extra $600 |
(Refrigerator, stove, washer, dryer)
| Province | Tax Amount | vs Alberta |
|---|---|---|
| Alberta | $250 | - |
| Ontario | $650 | +$400 |
| Nova Scotia | $750 | +$500 |
Lifetime Sales Tax Savings: Alberta vs Ontario
Assuming average annual taxable spending of $50,000 over a 40-year period:
- Alberta resident total sales tax: $100,000 (5% x $50,000 x 40 years)
- Ontario resident total sales tax: $260,000 (13% x $50,000 x 40 years)
- Lifetime savings in Alberta: $160,000
Provinces with Highest Sales Tax
Why Some Provinces Have Higher Sales Tax
Higher sales tax rates in Atlantic Canada and Quebec reflect several factors:
- Smaller tax bases: With fewer residents and businesses, these provinces need higher rates to generate equivalent revenue
- Expanded public services: Quebec's comprehensive childcare and social programs are partially funded through QST
- HST harmonization: Atlantic provinces agreed to higher rates when harmonizing with the federal GST
- Economic geography: Without major resource revenues (like Alberta's oil), provinces rely more heavily on consumption taxes
Did you know? British Columbia briefly had a 12% HST (2010-2013) but returned to a separate GST+PST system after a public referendum rejected harmonization. This was the first successful referendum to reverse a tax policy in Canadian history.
Common Sales Tax Exemptions
While rates vary, most provinces exempt certain essential items from provincial sales tax:
| Item Category | GST | PST/HST Provincial Portion | Notes |
|---|---|---|---|
| Basic groceries | Exempt (0%) | Exempt (0%) | Excludes prepared foods, snacks, alcohol |
| Prescription medications | Exempt (0%) | Exempt (0%) | Includes dispensing fees |
| Medical devices | Exempt (0%) | Exempt (0%) | Wheelchairs, hearing aids, etc. |
| Children's clothing | 5% | Varies (exempt in some provinces) | SK, MB exempt; ON, Atlantic taxed |
| Books (print) | 5% | Varies | Exempt in BC, ON; taxed in most others |
| Residential rent | Exempt (0%) | Exempt (0%) | Long-term residential only |
| Used residential homes | Exempt (0%) | Exempt (0%) | New homes are taxable |
Important: Exemptions vary by province. Always verify with your provincial tax authority before assuming an item is exempt. For example, children's clothing is PST-exempt in Saskatchewan but fully taxed (at HST rates) in Ontario.
Frequently Asked Questions
Which Canadian provinces have no provincial sales tax?
Alberta is the only Canadian province with no Provincial Sales Tax (PST). Alberta residents only pay the federal 5% GST on purchases. The three territories (Yukon, Northwest Territories, and Nunavut) also have no territorial sales tax, charging only the 5% federal GST.
What is the difference between PST, GST, and HST?
GST (Goods and Services Tax) is the federal 5% tax applied across Canada. PST (Provincial Sales Tax) is an additional provincial tax that varies by province (0-10%). HST (Harmonized Sales Tax) combines GST and PST into a single tax in participating provinces. Ontario HST is 13%, while Atlantic provinces charge 15% HST.
How much can I save on a car purchase in Alberta vs Ontario?
On a $40,000 vehicle: In Alberta, you pay only 5% GST = $2,000 in sales tax. In Ontario, you pay 13% HST = $5,200 in sales tax. That's a savings of $3,200 on a single purchase. For a $60,000 vehicle, the savings increase to $4,800.
Can I avoid HST by buying in Alberta and shipping to another province?
Generally no. When you bring goods back to your home province, you may owe provincial sales tax. For vehicles, you typically pay the sales tax of your province of residence when you register the vehicle. Some exceptions exist for goods purchased for personal use while visiting, but large purchases are usually subject to your home province's tax upon import.
Which province has the highest sales tax in Canada?
The Atlantic provinces (Nova Scotia, New Brunswick, Newfoundland and Labrador, and Prince Edward Island) have the highest combined sales tax at 15% HST. Quebec has a combined rate of 14.975% (5% GST + 9.975% QST).
How much do Alberta residents save annually on sales tax?
The average Canadian household spends approximately $65,000 on taxable goods and services annually. An Alberta household paying only 5% GST would pay $3,250 in sales tax. An Ontario household at 13% HST would pay $8,450. That's annual savings of approximately $5,200 for Alberta residents.
Related Resources
Disclaimer: This guide provides general information about Canadian provincial sales taxes for educational purposes only. Tax laws change frequently, and individual circumstances vary. Consult a qualified tax professional for advice specific to your situation. Data sourced from the Canada Revenue Agency and provincial tax authorities as of January 2026.