Alberta is the only major Canadian province without a provincial sales tax, so the Alberta purchase tax picture is unusually simple: most things you buy carry only the 5% federal Goods and Services Tax. A handful of purchases — hotel rooms, fuel, tobacco, expensive vehicles, and real estate registration — carry their own separate charges on top of, or instead of, the GST.
The 5% GST on Most Purchases
Retail goods and most professional services in Alberta are taxed at 5% under the federal Excise Tax Act.1Canada Revenue Agency. Charge and Collect the GST/HST Because there is no provincial layer on top, that 5% is the whole sales-tax bill on a typical purchase. Provinces that use the Harmonized Sales Tax charge between 13% and 15% combined, so the same shopping basket costs noticeably less at an Alberta till.
What You Won’t Pay GST On
A meaningful share of household spending is not taxed at all. Basic groceries — fresh produce, dairy, meat, bread, eggs — ring up with no GST.2Canada Revenue Agency. Basic Groceries Snack foods, carbonated drinks, candy, and prepared meals are taxable. Prescription medications and most medical devices are also tax-free under Schedule VI of the Excise Tax Act.3Department of Justice Canada. Excise Tax Act RSC 1985 c E-15 – Schedule VI, Part I
Long-term residential rent is exempt from GST as long as the same tenant occupies the unit for at least one month.4Department of Justice Canada. Excise Tax Act RSC 1985 c E-15 – Schedule V, Part I Short-term rentals under 28 days, including Airbnb stays, don’t qualify. Tuition from qualifying educational institutions is exempt too, though textbooks and school supplies are taxed normally.
Hotels and Short-Term Stays
Anyone booking a hotel, motel, lodge, or short-term rental in Alberta pays the Alberta Tourism Levy on top of the 5% GST. The levy rose from 4% to 6% of the purchase price effective April 1, 2026.5Government of Alberta. Tourism Levy Purchase price isn’t just the room rate. It includes cleaning fees, pet fees, extra amenity charges, and any booking or service fees added by online platforms.
Stays of 28 consecutive days or more by the same guest are exempt, so the levy effectively falls on short-term visitors. Bookings made before April 1, 2026, still qualify for the older 4% rate even if the stay itself falls after that date. On a $200-per-night room, the 6% levy adds $12 a night before GST.
Buying a Vehicle
A vehicle bought from a dealership carries the standard 5% GST on the purchase price, usually rolled into the financing on the bill of sale.
Private sales work differently. GST generally does not apply when you buy a vehicle from someone who is not a GST registrant.6Canada Revenue Agency. GST/HST and Motor Vehicles With no Alberta provincial sales tax to worry about at the registry, a private used-car purchase between individuals can be tax-free. In provinces like British Columbia, the same private sale would trigger provincial sales tax at registration.
Federal Luxury Tax
New passenger vehicles priced above $100,000 also trigger the federal Select Luxury Items Tax. The tax is the lesser of 10% of the full price or 20% of the amount over $100,000.7Canada Border Services Agency. Memorandum D18-4-1 – Select Luxury Items Tax on Importation On a $130,000 SUV, that works out to $6,000 (20% of the $30,000 above the threshold) rather than $13,000. The luxury tax is calculated before GST and applies to domestic dealership sales as well as imports. Electric vehicles are not exempt.
Buying Real Estate
Alberta charges no Land Transfer Tax, which saves buyers thousands compared with Ontario or British Columbia. Instead, the province charges flat land title registration fees.
The fee to register a transfer of land is $50 plus $5 for every $5,000 of the property’s value. Registering a mortgage costs $50 plus $5 for every $5,000 of the mortgage principal.8Government of Alberta. Land Titles and Surveys Common Documents Fee Schedule On a $500,000 home with a $400,000 mortgage, that comes out to $550 for the title transfer and $450 for the mortgage — $1,000 total. The equivalent Ontario land transfer tax on the same purchase would run roughly $6,475. Private registry agents typically add $10 to $15 per document in service fees.
If You’re Not a Canadian Buyer
Most foreign nationals are barred from buying residential property in Canada under the Prohibition on the Purchase of Residential Property by Non-Canadians Act, which runs until January 1, 2027.9Canada Mortgage and Housing Corporation. Prohibition on the Purchase of Residential Property by Non-Canadians Act Exceptions cover temporary residents with valid work permits, certain international students who have filed Canadian tax returns for five consecutive years, refugees, and non-Canadians buying jointly with a Canadian spouse. Non-Canadian owners may also owe the federal Underused Housing Tax, a 1% annual levy on vacant or underused homes.10Government of Canada. Underused Housing Tax
Fuel and Tobacco
Fuel and tobacco taxes are built into the price on the pump display or store shelf rather than added at the till.
Alberta’s base provincial fuel tax is 13 cents per litre on gasoline and diesel, but the province adjusts the rate each quarter based on the average price of West Texas Intermediate crude.11Government of Alberta. Fuel Tax – Overview When WTI sits at or above $90 per barrel the fuel tax is fully suspended. Between $85 and $89.99 it drops to 4.5 cents per litre; between $80 and $84.99 it’s 9 cents; below $80 the full 13 cents applies.
The federal government normally charges a 10-cent-per-litre excise tax on gasoline, but that federal excise is temporarily suspended from April 20 through September 7, 2026.12Canada Border Services Agency. Temporary Suspension of the Federal Fuel Excise Tax The federal consumer carbon tax was cancelled effective April 1, 2025, and no longer adds anything to the pump price.
On tobacco, Alberta collects a provincial excise tax from manufacturers and wholesalers before product reaches the shelf. The most recent published rate works out to roughly $6.00 per pack of 20 cigarettes. Federal excise duties apply on top of that, and the 5% GST is calculated on the total shelf price including all excise amounts. Taxes make up the majority of what you pay for a pack in Alberta.