Provincial Sales Tax (PST) in Canada is a retail sales tax that three provinces charge on most goods and some services, on top of the 5% federal Goods and Services Tax (GST). British Columbia charges 7%, Saskatchewan charges 6%, and Manitoba charges 7% under a tax it calls Retail Sales Tax (RST). Quebec runs a related but structurally different tax called the Quebec Sales Tax (QST) at 9.975%. The rest of the country either folds the provincial portion into a single Harmonized Sales Tax (HST) or charges no provincial sales tax at all.
Which Provinces Charge PST
Only three provinces run a traditional standalone PST:
- British Columbia: 7% PST under the Provincial Sales Tax Act1Province of British Columbia. B.C. Provincial Sales Tax (PST)
- Saskatchewan: 6% PST2Government of Saskatchewan. Provincial Sales Tax (PST)
- Manitoba: 7% Retail Sales Tax, governed by The Retail Sales Tax Act; the label differs but it works like PST
Five provinces use HST, a single combined tax that merges the federal GST with the provincial portion into one rate administered by the Canada Revenue Agency: Ontario, New Brunswick, Nova Scotia, Newfoundland and Labrador, and Prince Edward Island. Alberta, Yukon, the Northwest Territories, and Nunavut charge no provincial or territorial sales tax, so buyers there pay only the 5% GST.
Quebec charges QST at 9.975%.3Revenu Québec. Tables of GST and QST Rates It’s often grouped with PST, but the mechanism is different, which matters if you’re running a business.
How QST Differs From PST
PST in British Columbia, Saskatchewan, and Manitoba is a single-stage retail tax. Businesses pay it on their own purchases and cannot recover it, so the tax on business inputs becomes a permanent cost. QST works like a value-added tax instead. Registered businesses in Quebec can claim input tax refunds to recover the QST they paid on purchases used in their commercial activities, similar to how businesses recover GST through input tax credits.4Revenu Québec. Input Tax Credits (ITCs) and Input Tax Refunds (ITRs) The end consumer still pays QST at checkout either way, but the burden on businesses is lighter in Quebec than in the PST provinces.
What PST Applies To
PST generally applies to tangible personal property, meaning physical goods like vehicles, furniture, electronics, and equipment, whether new or used.5Province of British Columbia. Provincial Sales Tax Act, Part 3 – Taxes in Relation to Tangible Personal Property Software is taxable in all three PST provinces, including downloaded applications. Telecommunication services such as internet and cellular plans are also within the tax base.
Some services are taxable beyond telecommunications. Short-term accommodations like hotel stays and vacation rentals commonly attract PST, and certain professional services are taxable depending on the province. The scope varies by jurisdiction. Something taxable in one PST province may be exempt in another, so if you sell across provincial lines you need to check each set of rules separately.
Cloud Computing and SaaS in Manitoba
Manitoba’s rules on cloud software changed recently. Effective January 1, 2026, cloud computing, including software as a service (SaaS), is taxable under Manitoba’s Retail Sales Tax Act. Manitoba businesses that subscribe to cloud-hosted software now owe RST on those charges even when the servers sit outside the province, and both resident and non-resident SaaS providers must collect RST on sales to Manitoba customers.6Government of Manitoba. Computer Software and Online Services
How PST Is Calculated on Your Receipt
PST is calculated on the purchase price before GST is added. The two taxes sit side by side rather than stacking. A $1,000 item in British Columbia carries $70 in PST (7% of $1,000) and $50 in GST (5% of $1,000), for a total of $1,120.7Province of British Columbia. Small Business Guide to PST For certain private sales, particularly vehicles and boats, PST may be calculated on fair market value instead of the stated price when the price looks artificially low.
Common PST Exemptions
Each PST province carves out exemptions for everyday necessities. The specific lists vary, but the most widely shared exemptions include:
- Basic groceries such as milk, bread, vegetables, and meat
- Prescription medications dispensed by a licensed practitioner
- Children’s clothing and footwear, and in some cases adult-sized clothing bought for children under a specified age8Province of British Columbia. PST Exemptions
- Books, newspapers, and magazines, sometimes including digital editions
Exemptions apply at the point of sale, so the retailer simply doesn’t charge PST on qualifying items. Individual buyers usually don’t need to show documentation, though businesses must keep records explaining why tax was not charged on an exempt sale.
Farm and Industry Exemptions
Qualifying farmers can buy listed farm equipment and supplies, such as tractors, combines, and incubators, exempt from PST when the items are used solely for farming.9Government of Saskatchewan. Tax Information for Farmers Some items are automatically exempt; others require the farmer to certify the intended use. Comparable exemptions exist for commercial fishing in certain provinces, and some jurisdictions exempt products tied to environmental policy goals, such as bicycles or energy-efficient equipment.
When Businesses Have to Register
If you sell or lease taxable goods, provide taxable services, or sell software in a PST province, you generally have to register with that province’s tax authority to collect and remit the tax.10Province of British Columbia. Register to Collect PST Registration is typically free and produces a provincial tax number that authorizes you to collect the tax legally.
British Columbia has a small seller exception: if your gross revenue from retail sales of taxable goods, software, and services was $10,000 or less in the past 12 months and you expect the same or less over the next 12, you don’t need to register.11Province of British Columbia. PST 003 Small Sellers Saskatchewan and Manitoba set their own thresholds, so check with each province if you sit near the margin. Operating without registering when you should have can be expensive. British Columbia’s Provincial Sales Tax Act sets fines at 50% to 200% of the tax that should have been collected.12BCLaws. Provincial Sales Tax Act
Online Sellers and Marketplace Facilitators
Selling into a PST province from outside it can also trigger registration. British Columbia, Saskatchewan, Manitoba, and Quebec require online marketplace facilitators, which are platforms that host third-party sellers, collect payment, and facilitate delivery, to register, collect, and remit provincial sales tax on behalf of their sellers. In British Columbia, these rules took effect on July 1, 2022, with a $10,000 gross-sales threshold below which registration isn’t required. When a registered marketplace facilitator collects the tax, the individual seller on the platform doesn’t need to collect it separately.
Direct sales to customers in a PST province, made without going through a registered marketplace, can still require you to register depending on your sales volume and each province’s specific rules for out-of-province vendors.
Buying From Out of Province
When you buy taxable goods or services from a seller outside your PST province and that seller doesn’t charge PST, the obligation doesn’t disappear. It shifts to you. Businesses in British Columbia have to self-assess and remit PST on out-of-province purchases when the vendor didn’t collect it, and this covers goods brought into the province for use as well as services and software from non-registered sellers.
Individual consumers face a similar obligation when they bring taxable items into a PST province for personal use. Order furniture online from a retailer that doesn’t charge your province’s sales tax and you technically owe the tax yourself. Enforcement against individuals is less common than against businesses, but the legal obligation still sits with you.