Quebec sales tax rates are 5% for the federal Goods and Services Tax (GST) and 9.975% for the Quebec Sales Tax (QST), which together add 14.975% to most purchases. Both taxes are calculated on the pre-tax price, so neither is charged on top of the other. Revenu Québec collects both within the province, meaning businesses deal with a single agency for filing and remittance.
How the Two Taxes Stack on a Purchase
The QST rate of 9.975% has been in place since January 1, 2013, when Quebec harmonized its tax base with the federal system.1Revenu Québec. Tables of GST and QST Rates Before that date, the QST was calculated on a total that already included the GST, so you paid provincial tax on top of federal tax. Harmonization removed the GST from the QST base.2Ministère des Finances du Québec. 2012-4 Changes to Québec’s Tax System Pursuant to the Undertakings to Harmonize It with the Federal Tax System Applicable in 2013
Both rates now apply independently to the same starting figure. On a $100 item:
- GST: $100 × 5% = $5.00
- QST: $100 × 9.975% = $9.98
- Total at the register: $114.98
The QST is calculated on the original $100, not on $105. Point-of-sale systems in the province are programmed this way, and the same rule applies if you are checking an invoice by hand.
What Isn’t Taxed at the Full Rate
Some goods and services carry no tax at the checkout. From a shopper’s point of view the receipt looks the same, but the rules split into two categories.
Zero-rated supplies are technically taxable at 0%. Basic groceries such as milk, bread, vegetables, and meat fall into this group, along with prescription drugs and certain medical devices like hearing aids and wheelchairs.3Revenu Québec. Zero-Rated Supplies Sellers of zero-rated goods can still recover the GST and QST they paid on their own expenses through input tax credits and input tax refunds.
Exempt supplies also carry no tax, but the seller cannot recover the tax they paid on their own costs, so that expense tends to be built into the price. The exempt category covers long-term residential leases of one month or more, most health care and education services, childcare, legal aid, and most financial services.4Revenu Québec. Exempt Supplies
Extra Taxes on Lodging and Insurance
Short-term accommodation carries an additional levy. Any stay of fewer than 32 consecutive days in a hotel, motel, Airbnb, or similar rental triggers a lodging tax of 3.5% on the nightly price.5Revenu Québec. Tax on Lodging – Paying and Billing the Tax The tax applies only to the room charge, not to extras like parking or breakfast. Tourism regions opt into this tax individually, so it does not apply uniformly across the province. When a room is booked through an intermediary such as a tour operator, a flat $3.50 per night applies instead of the percentage. Expect GST, QST, and the lodging tax as separate line items on a hotel bill.
Insurance premiums are exempt from the QST but subject to a separate insurance premiums tax. The current rate is 9%, and Quebec has enacted legislation (Bill 99) to raise it to 9.975% for premiums paid after December 31, 2026, covering home, auto, and group insurance.6Revenu Québec. Harmonization of the Insurance Premiums Tax Rate with the QST Rate Unlike the QST, this tax does not allow businesses to claim an input tax refund.
New Housing Rebate
Buyers of newly built or substantially renovated homes can recover part of the sales tax paid on the purchase. The maximum QST rebate is 50% of the QST paid, up to $9,975. The maximum GST rebate is 36% of the GST paid, up to $6,300.7Revenu Québec. GST and QST Rebate for Owners of New or Substantially Renovated Housing
Both rebates phase out as the price climbs. The QST rebate begins to shrink once the purchase price exceeds $200,000 and disappears at $300,000. The GST rebate phase-out runs from $350,000 to $450,000. In urban markets where prices routinely exceed $300,000, many buyers qualify for the GST rebate but receive nothing on the QST side.
When Businesses Have to Register
The small supplier rule exempts a business from registering if its total worldwide taxable supplies (including those of associates) stay at or below $30,000 in a single calendar quarter and across the four preceding quarters.8Revenu Québec. Details Concerning Small Suppliers Cross that line and you must register with Revenu Québec and start charging the combined 14.975%.
Public service bodies such as charities and non-profits get a higher $50,000 threshold in the same measurement period.9Canada Revenue Agency. Small Suppliers Taxi operators must register regardless of revenue, as do non-residents who charge admission to events held in Quebec.10Revenu Québec. Registering for the GST and QST
Businesses under the threshold can also register voluntarily. The main draw is access to input tax credits and refunds on the GST and QST paid on their own purchases. If most customers are themselves registered businesses, voluntary registration usually pays off. If customers are mainly individual consumers, adding 14.975% to prices may cost more in lost sales than the refunds return. Once registered, you keep collecting and remitting even if revenue later drops below the threshold.
Sellers outside Quebec that supply taxable goods, services, or digital products to Quebec consumers must register for the QST once sales to Quebec customers exceed $30,000 in a 12-month period. A simplified system is available for non-residents without a physical presence in the province: registrants collect QST only (not GST), file quarterly, and cannot claim input tax refunds.11Revenu Québec. Input Tax Credits (ITCs) and Input Tax Refunds (ITRs)
Filing Frequency and Deadlines
How often you file GST/QST returns depends on annual taxable sales:12Revenu Québec. Changing Your Filing Frequency
- Over $6,000,000: monthly filing is mandatory, with no option to change.
- $1,500,001 to $6,000,000: quarterly filing, with the option to elect monthly.
- $1,500,000 or less: annual filing, with the option to elect monthly or quarterly.
Returns and payments are generally due one month after the end of each reporting period. Charities can choose their own filing frequency regardless of revenue. When a deadline falls on a weekend or statutory holiday, it moves to the next business day.13Revenu Québec. Remittance Schedules of the QST and GST/HST
Penalties for Late Payment
Missing a deadline gets expensive fast. Payment penalties on late consumption tax remittances climb by lateness:14Revenu Québec. Late-Filing Penalties
- Up to 7 days late: 7% of the unpaid amount.
- 8 to 14 days late: 11% of the unpaid amount.
- More than 14 days late: 15% of the unpaid amount.
These are payment penalties only. A separate penalty for failing to file the return itself is added on top, and interest accrues on the outstanding balance. Because the rate more than doubles inside two weeks, a business that sees a deadline coming is usually better off filing on time with its best estimate and correcting later than waiting for exact figures.