Sales tax: GST and HST
The federal goods and services tax (GST) is 5%. Five provinces use a harmonized sales tax (HST) that combines federal and provincial portions. According to the Canada Revenue Agency, rates from 1 April 2025 are 13% in Ontario, 14% in Nova Scotia, and 15% in New Brunswick, Newfoundland and Labrador, and Prince Edward Island. Some provinces also charge their own provincial sales tax.
Corporate income tax
The net federal corporate rate is 15% after the general tax reduction. Canadian-controlled private corporations claiming the small business deduction pay a net federal rate of 9% on eligible income. Provincial or territorial corporate tax is added on top.
Finance checklist
- Determine where your customers are, as the place of supply drives the sales tax rate
- Register for GST/HST when required and configure rates by province in your ERP
- Keep the federal and provincial elements of corporate tax visible in your forecasts
- Align your reporting framework (IFRS for publicly accountable entities, ASPE for many private companies)
How we help
With a site office in Canada, we support bookkeeping, reporting and ERP configuration for Canadian operations. Confirm current rates with the CRA and a Canadian tax adviser.
This article is general information, not accounting, tax or legal advice. Rates, thresholds and effective dates should be confirmed with the official sources (IFRS Foundation, tax authorities, regulators) or your adviser before acting.