VAT rates in Canada (2026)

Last reviewed: 7 November 2026

In short: The federal GST is 5%, with an extra provincial rate in participating provinces. Basic groceries and prescription drugs are zero-rated. A small supplier with up to CAD 30,000 of taxable supplies need not register. The Canada Revenue Agency administers the tax.

RuleWhat applies
Standard VAT rateValue added taxThe federal Goods and Services Tax (GST) is 5% of the value of the consideration for a taxable supply made in Canada. In participating provinces an additional provincial rate is added to that. [1]
Reduced VAT ratesValue added taxSome supplies are zero-rated (taxed at 0%) under Schedule VI, including prescription drugs (Part I) and basic groceries (Part III). [2]
VAT on foodValue added taxBasic groceries (food and beverages for human consumption) are zero-rated, with exceptions such as alcoholic beverages, cannabis products, carbonated beverages and some fruit-flavoured drinks. [2]
VAT registration thresholdValue added taxA small supplier (CAD 30,000 of taxable supplies over four calendar quarters, or CAD 50,000 for a public service body) is not required to register. Different rules apply to certain gambling supplies. [3]
Tax authorityValue added taxThe Canada Revenue Agency administers and enforces the Excise Tax Act, which contains the GST. [4]

Notes

  • Provincial sales taxes and the harmonised (HST) rates are set by each province, so the total rate differs by province.

Sources

  1. Department of Justice Canada: Excise Tax Act, s 165 (Imposition of goods and services tax) (consulted 7 November 2026) · all sources
  2. Department of Justice Canada: Excise Tax Act, Schedule VI (Zero-Rated Supplies), full text (consulted 7 November 2026) · all sources
  3. Department of Justice Canada: Excise Tax Act, s 148 (Small suppliers) (consulted 7 November 2026) · all sources
  4. Department of Justice Canada: Canada Revenue Agency Act, s 2 (program legislation) (consulted 7 November 2026) · all sources

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General information, not legal advice. Rules change: check the official source before you fly or ride.