HST (Harmonized Sales Tax)
HST combines the 5% federal GST with a provincial portion into a single harmonized tax, simplifying compliance for businesses operating in multiple provinces. The total HST rate is 13% in Ontario, 14% in Nova Scotia, and 15% in New Brunswick, Newfoundland & Labrador, and Prince Edward Island.
The HST is administered by the CRA on behalf of participating provinces. Businesses file a single HST return covering both the federal and provincial components. This is simpler than in non-HST provinces, where businesses may need to register and file separately for PST or QST.
HST applies to most goods and services, with the same exemptions and zero-rated categories as the GST. Some provinces provide point-of-sale rebates on certain items (e.g. Ontario rebates the provincial portion on children's clothing and prepared food under $4). Low- and modest-income Canadians receive the GST/HST credit to offset the cost.
How it works
HST folds the 5% federal GST and a provincial sales tax into one combined rate, so businesses charge and remit a single tax instead of tracking two separate ones. Rates differ by province: 13% in Ontario, 14% in Nova Scotia, and 15% in New Brunswick, Newfoundland and Labrador, and Prince Edward Island.
Because the CRA administers HST on behalf of the participating provinces, a business only needs to file one combined HST return, rather than registering and filing separately with a provincial tax authority the way businesses in PST provinces must. This makes HST provinces noticeably simpler for businesses that operate across provincial lines.
Some provinces layer point-of-sale rebates on top of HST for specific items, such as Ontario's rebate of the provincial portion on children's clothing and on prepared food under $4, so those purchases end up taxed at a lower effective rate than the full HST rate. Lower- and modest-income Canadians also receive the quarterly GST/HST credit to help offset the overall cost of the tax.
Example: The same purchase in different HST provinces
A $100 purchase in Ontario, where the HST rate is 13%, costs $113 after tax. The same $100 purchase in Nova Scotia, at a 14% HST rate, costs $114, and in New Brunswick, Newfoundland and Labrador, or Prince Edward Island, at 15%, it costs $115.
The only difference across all four provinces is the provincial component folded into the single HST rate - the federal 5% GST portion is identical everywhere HST applies.
Frequently asked questions
Is the HST rate the same across every HST province?
No, it ranges from 13% in Ontario up to 15% in New Brunswick, Newfoundland and Labrador, and Prince Edward Island, with Nova Scotia at 14%, since each province sets its own provincial component.
Do businesses in HST provinces file separate GST and provincial returns?
No, HST combines both into a single return filed with the CRA, which is simpler than PST provinces where GST and the provincial sales tax are registered and filed separately.
Are there any rebates on HST purchases?
Some provinces offer point-of-sale rebates on specific items, such as Ontario rebating the provincial portion of HST on children's clothing and on prepared food under $4.
Related Terms
GST (Goods and Services Tax)
The GST is a 5% federal value-added tax applied to most goods and services sold in Canada.
PST (Provincial Sales Tax)
PST is a provincial sales tax levied separately from the federal GST.
QST (Quebec Sales Tax)
The QST is Quebec's provincial sales tax at 9.
GST/HST Credit
The GST/HST credit is a tax-free quarterly payment from the CRA designed to help individuals and families with low and modest incomes offset the GST/HST they pay on everyday purchases.