PST (Provincial Sales Tax)
PST is a provincial sales tax levied separately from the federal GST. British Columbia charges 7%, Saskatchewan charges 6%, and Manitoba charges 7% (called Retail Sales Tax, or RST). Unlike the HST, PST is administered by the provincial government, not the CRA.
PST rules and exemptions vary by province. Generally, PST applies to tangible personal property and some services, but the specific items taxed and the exemptions differ. For example, BC exempts food, children's clothing, and bicycles from PST, while Saskatchewan exempts children's clothing but taxes restaurant meals.
Businesses operating in PST provinces must register separately with the provincial tax authority and file PST returns on a different schedule than their GST returns. This creates additional compliance burden compared to HST provinces, which is one reason some business groups advocate for HST adoption in remaining PST provinces.
How it works
PST is charged and collected entirely separately from the federal GST, and it's administered by the provincial government rather than the CRA. Rates vary by province: British Columbia charges 7%, Saskatchewan charges 6%, and Manitoba charges 7% under its own name, Retail Sales Tax.
What counts as taxable under PST differs from province to province, so you can't assume the rules from one PST province apply in another. British Columbia exempts food, children's clothing, and bicycles from PST, while Saskatchewan exempts children's clothing but still taxes restaurant meals, so the same purchase can be treated very differently depending on where you are.
Businesses operating in a PST province must register separately with that province's tax authority, on top of registering for GST with the CRA, and file PST returns on a different schedule than their GST returns. This extra layer of registration and filing is one reason some business groups have pushed for these provinces to adopt HST instead.
Example: Combined GST and PST on the same purchase
A $200 purchase in British Columbia attracts 5% GST, which is $10, plus 7% PST, which is $14, for $24 of total tax and a final price of $224.
The same $200 purchase in Saskatchewan attracts the same $10 of GST, but only 6% PST, which is $12, for $22 of total tax and a final price of $222 - two dollars less than in BC purely because of the lower provincial rate.
Frequently asked questions
Is PST the same thing as HST?
No, PST is a separate provincial tax administered by the province itself, filed and collected apart from GST, whereas HST combines the federal and provincial portions into one tax administered by the CRA.
Which provinces charge PST?
British Columbia (7%), Saskatchewan (6%), and Manitoba (7%, called Retail Sales Tax there) all levy a separate provincial sales tax outside the HST and QST systems.
Are PST exemptions the same in every province?
No, exemptions are set province by province - for example British Columbia exempts food, children's clothing, and bicycles, while Saskatchewan exempts children's clothing but still taxes restaurant meals.
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.
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.
QST (Quebec Sales Tax)
The QST is Quebec's provincial sales tax at 9.