HST is a single sales tax that combines federal and provincial tax into one rate
HST stands for Harmonized Sales Tax. It is a combined sales tax that replaces separate federal and provincial sales taxes in the provinces that use it. When you buy something in an HST province, the tax you pay at checkout includes both the federal portion and the provincial portion in a single number.
HST applies to most goods and services you purchase. The rate depends on which province you are in, because each HST province sets its own rate. The federal government sets a base rate, but provinces add their own portion on top of it.
HST is collected by the business selling you the item. The business then sends that money to the Canada Revenue Agency (CRA), which distributes the provincial share to the province and keeps the federal share.
Key Takeaways
- HST combines federal and provincial sales tax into one rate that varies by province, ranging from 13% to 15% depending on where you live.
- Five Canadian provinces use HST: Nova Scotia, New Brunswick, Newfoundland and Labrador, Ontario, and Prince Edward Island.
- Most everyday purchases are taxed, but some items like basic groceries, prescription medications, and medical devices are HST-exempt.
- Businesses that register for HST can claim back the tax they pay on business purchases, which is why HST appears on invoices even though businesses do not pay it on supplies.
Which provinces charge HST and at what rate
Five provinces currently use HST. Each province has set its own rate by adding a provincial component to the federal base rate.
| Province | HST Rate |
|---|---|
| Nova Scotia | 15% |
| New Brunswick | 15% |
| Newfoundland and Labrador | 15% |
| Ontario | 13% |
| Prince Edward Island | 15% |
Other provinces use different sales tax systems. British Columbia, Saskatchewan, and Manitoba use GST plus PST (Provincial Sales Tax) as two separate taxes. Quebec uses GST plus QST (Quebec Sales Tax). Alberta has only GST with no provincial sales tax.
The rate you pay depends on where the purchase happens, not where you live. If you buy something while visiting another province, you pay that province's tax rate.
What is taxed and what is not
HST applies to most items you buy, but some categories are exempt, meaning no HST is added to the price. The most common exemptions are basic groceries, prescription drugs, and certain medical devices.
Basic groceries that are exempt include bread, milk, eggs, vegetables, fruit, meat, and other unprocessed foods. Restaurant meals, prepared foods, and snack foods are taxed. Candy, soft drinks, and alcohol are also taxed.
Prescription medications and certain medical devices like wheelchairs, hearing aids, and diabetic testing supplies are HST-exempt. Over-the-counter medications and vitamins are taxed. Dental and vision care services are taxed, though some provinces have specific rules about what counts as a medical service.
Services like haircuts, car repairs, and professional fees are taxed. Rent and mortgage payments are not taxed. Insurance premiums are not taxed. Used goods sold by individuals are not taxed, but used goods sold by a business may be taxed depending on the circumstances.
How HST affects what you pay
When you see a price tag in an HST province, that price usually does not include the tax. The HST is added at checkout. If an item costs $100 and the HST rate is 13%, you pay $113 total.
Some businesses display prices with HST included, but this is not required. Always check whether a quoted price is before or after tax, especially for larger purchases like furniture or appliances.
HST affects your overall cost of living in an HST province compared to a province with separate GST and PST. The combined rate in Ontario (13%) is lower than the combined rate in Nova Scotia (15%), so your tax burden varies by location.
How HST works for businesses
Businesses that register for HST collect the tax from customers and send it to the CRA. However, registered businesses can also claim back the HST they pay on business purchases and expenses. This is called an input tax credit.
For example, a bakery collects 13% HST on bread sold to customers. But the bakery also paid HST on flour, yeast, and other supplies. The bakery can claim back the HST paid on those supplies, so it only sends the net difference to the CRA.
This is why you see HST listed on invoices even when dealing with a business. The business is not keeping that money — it is tracking it to claim back the portion related to business expenses. Small businesses below a certain revenue threshold may not need to register for HST.
HST refunds and credits for individuals
Most individuals cannot claim back HST they pay on personal purchases. You pay HST on groceries, gas, and clothing, and that cost is final.
However, the federal government offers the GST/HST Credit, a quarterly payment to individuals and families with lower incomes. This is not a refund of HST you paid — it is a separate benefit payment based on your income and family size. You do not need to do anything to receive it if you file your tax return; the CRA calculates it automatically.
Some provinces also offer additional HST credits or rebates for specific situations, such as home heating costs or property tax. Check with your provincial government to see what programs may be available in your province.
Frequently Asked Questions
Why do some prices not include HST?
Businesses are not required to display prices with HST included. Many show the base price and add tax at checkout. This is common in retail stores, restaurants, and service businesses. Some businesses do include HST in the displayed price, but you have to check the receipt or ask to be sure.
Is HST the same in every HST province?
No. The rate varies by province. Ontario charges 13%, while Nova Scotia, New Brunswick, Newfoundland and Labrador, and Prince Edward Island all charge 15%. Each province sets its own rate, so you pay different amounts depending on where you make the purchase.
Can I get HST back when I leave Canada?
Yes, if you are a non-resident visitor, you may be able to claim back HST on goods you are taking out of Canada through the Visitor Rebate Program. You need to have receipts and meet specific requirements. Ask at the airport or border, or visit the CRA website for details on how to apply.
Do I pay HST on online purchases from other provinces?
If you buy from a business in another province, you generally pay the HST rate of the province where the business is located, not where you live. However, some online retailers may charge based on the shipping address. Check the checkout page to see what tax rate is being applied.
What is the difference between HST and GST/PST?
HST is one combined tax rate. GST/PST is two separate taxes added together. The total rate you pay may be similar, but how the tax is structured and how businesses claim credits differs. HST is simpler for businesses because they deal with one tax number instead of two.