1. What is GST/PST Tax Calculation?

The GST (Goods and Services Tax) and PST (Provincial Sales Tax) are consumption taxes in Canada. This calculator helps determine the total tax amount and final price after applying both tax rates.

2. How Does the Calculator Work?

The calculator uses the formula:

Where:

• \( Amount \) — The pre-tax amount in Canadian dollars
• \( GST \) — Federal Goods and Services Tax rate (typically 5%)
• \( PST \) — Provincial Sales Tax rate (varies by province)

Explanation: The calculator adds the GST and PST rates together, then multiplies by the original amount to determine the total tax. The final amount is the sum of the original amount and the calculated tax.

3. Importance of Tax Calculation

Details: Accurate tax calculation is essential for pricing goods and services, financial planning, and compliance with Canadian tax laws.

4. Using the Calculator

Tips: Enter the pre-tax amount in CAD, then enter the GST and PST rates as decimals (e.g., 5% = 0.05). All values must be valid (amount > 0, tax rates between 0-1).

5. Frequently Asked Questions (FAQ)

Q1: What are the current GST and PST rates?
A: GST is 5% nationwide. PST varies by province (e.g., 7% in BC, 9.975% in Quebec). Some provinces use HST instead.

Q2: Are all items subject to both GST and PST?
A: No, some items are exempt from PST, GST, or both. Consult Canada Revenue Agency for specific exemptions.

Q3: How do I calculate tax for HST provinces?
A: In HST provinces, use the combined rate (e.g., 13% in Ontario) as both GST and PST values in the calculator.

Q4: Should tax be included in displayed prices?
A: In Canada, most displayed prices exclude taxes, which are added at checkout. Some provinces require tax-included pricing for certain items.

Q5: How often do tax rates change?
A: Federal GST rates change rarely, but provincial rates may change more frequently. Always verify current rates with official sources.