Canada GST and HST

Canada GST and HST

The Canadian federal GST, Goods and Services Tax, is similar to VAT in other countries.
The GST and HST, Harmonized Salea Tax, apply to most supplies of goods and services supplied in or imported into Canada.
The standard GST rate is 5%
The three provinces of Ontario, New Brunswick and Newfoundland and Labrador harmonize the 8% sales tax with the 5% GST, creating a 13% harmonized sales tax, HST.
The HST in Prince Edward Island is 14%.
The HST in Nova Scotia is 15%.

Zero rated Goods and Services
Basic groceries.
Agricultural products.
Medical drugs and services.

Exempt Goods and Services

Health services.
Educational services.
Services by financial institutes.
Long term residential rent.

Payroll Tax

The tax is imposed by several provinces, including Ontario, Manitoba and Quebec on gross salaries.
The Employment Insurance (EI) and Canada Pension Plan (CPP) rates have both increased in 2023.
The EI rate has increased from 1.58% to 1.63% based on maximum annual insurable earnings of $61,500.