Canada GST Calculator 2026
Canada applies a single GST rate of 5% to all taxable supplies.
Figures last reviewed
Canada GST at a glance
- Standard GST rate
- 5% — ranked 35 of 36 covered here
- Compared with the average
- -11.99 pts — average across the 36 countries covered is 16.99%
- Registration threshold
- 30,000 CAD — annual turnover above which registration becomes compulsory
- Rates verified
- 17 August 2026 — checked against the issuing tax authority
How GST works in Canada
Federal GST only. Most provinces add PST or levy a combined HST of 13-15%, so the rate actually charged depends on the province.
Calculating Canada GST
Start from the price excluding tax
GST is charged on the net price. At 5%, a net CAD 100 becomes CAD 105.00 once GST of CAD 5.00 is added.
To work backwards, divide — never subtract
Removing GST from a gross figure means dividing by 1.0500, not subtracting 5%. Subtracting the percentage from the gross amount understates the net price, and the error grows with the rate.
Registration is threshold-based
Businesses with taxable turnover above CAD 30,000 a year must register and charge GST. Below it, registration is usually voluntary — worth doing when your customers can reclaim the tax.
Worked example at 5%
Adding and removing GST at 5%
| Component | Adding to a net price | Removing from a gross price |
|---|---|---|
| Starting amount | CAD 100.00 | CAD 1,000.00 |
| GST at 5% | (CAD 5.00) | (CAD 47.62) |
| Result | CAD 105.00 | CAD 952.38 |
So a net price of CAD 100.00 in Canada costs CAD 105.00 once GST is added. Working the other way, a gross price of CAD 1,000.00 contains CAD 47.62 of GST, leaving CAD 952.38 net.
Computed from the same 5% rate the calculator applies, so this table and the calculator cannot disagree.
Countries with a similar rate
Canada GST questions
What is the GST rate in Canada?
The standard rate is 5%, and it applies to all taxable supplies — Canada has no reduced rate. That places Canada 35 of 36 of the countries covered here, 11.99 points below the 16.99% average.
How do I remove GST from a price in Canada?
Divide the gross amount by 1.0500. At 5%, a gross CAD 1,000 works back to CAD 952.38 net with CAD 47.62 of GST. Subtracting 5% from the gross figure is the common mistake and gives the wrong answer.
When do I have to register for GST in Canada?
Once taxable turnover passes CAD 30,000 a year. Registering voluntarily below the threshold lets you reclaim input tax, which usually pays off if you sell mainly to other registered businesses and costs you if you sell to consumers.
Is Canada's GST the same thing as VAT?
Not exactly. Federal GST only. Most provinces add PST or levy a combined HST of 13-15%, so the rate actually charged depends on the province. The calculator applies the headline rate, which is what most transactions use, but the underlying regime differs from a European-style VAT.
Which countries have higher and lower rates than Canada?
Of the countries covered here, Finland has the highest standard rate at 25.5% and United Arab Emirates the lowest at 5%. Canada sits at 5%.