Alberta Tax Advantage 2026
5% GST Only

Alberta Has No Provincial Sales Tax

How Much You Save vs Ontario HST (13%), BC (12%), and Quebec (14.975%) — 2026 Guide

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Sales Tax Rates Across Canada (2026)

Alberta
5%
GST only — No PST
Ontario
13%
HST (5% GST + 8% PST)
BC
12%
5% GST + 7% PST
Quebec
14.975%
5% GST + 9.975% QST
Saskatchewan
11%
5% GST + 6% PST
Manitoba
12%
5% GST + 7% RST
Alberta's advantage: Alberta is one of only four jurisdictions in Canada with no provincial sales tax (along with some territories). Albertans pay only 5% GST on most goods and services, compared to 13% in Ontario — a difference of 8 percentage points on every eligible purchase.

PST Savings Calculator

Enter Purchase Amount — See Sales Tax by Province

Alberta — 5% GST only
$0
Ontario — 13% HST
BC — 12% (GST + PST)
Quebec — 14.975% (GST + QST)

Annual PST Savings for Alberta Households

The cumulative PST savings for an Alberta household add up significantly over a year. Here are estimates based on typical household spending categories where PST applies in Ontario:

Spending CategoryAnnual Spend (est.)AB Tax (5%)ON Tax (13%)AB Annual Saving
New vehicle$40,000$2,000$5,200$3,200
Electronics & appliances$2,000$100$260$160
Clothing & shoes$3,000$150$390$240
Home renovations$5,000$250$650$400
Furniture & household$2,500$125$325$200
Professional services$2,000$100$260$160
Approximate Total$54,500$2,725$7,085$4,360/yr

Estimates are illustrative. Grocery food, residential rent, and certain health products are generally exempt from PST in Ontario too. The savings are most significant on large purchases: vehicles, appliances, renovations, and electronics.

What Goods & Services Are Taxed Differently in Alberta?

ItemAlbertaOntario (HST)BC (PST+GST)
New vehicle5% only13%12% (+ 7% PST)
Used vehicle (private)0% (no PST)13% if dealer12% PST on value
Electronics5% only13%12%
Clothing5% only13%12%
Restaurant meals5% only13%12%
Hotel stays5% + tourism levy13%12%+
Basic groceries0% (GST exempt)0% (HST exempt)0% (exempt)
Prescription drugs0% (GST exempt)0% (HST exempt)0% (exempt)

Frequently Asked Questions

Does Alberta really have no PST in 2026?
Yes — Alberta has no provincial sales tax in 2026. Albertans pay only 5% GST (federal Goods and Services Tax) on most purchases. There is no provincial component to the sales tax. This has been Alberta's policy for decades and there is no current legislation to change it. Compare this to Ontario's 13% HST, BC's 12% (GST + PST), and Quebec's 14.975% (GST + QST).
How much do Alberta residents save annually by having no PST?
The annual savings depend on spending patterns. An average Alberta household spending $50,000/year on PST-applicable goods and services saves approximately $3,500–$4,500 per year compared to Ontario (13% HST vs 5% GST). Over a 25-year period, this represents $87,500–$112,500 in cumulative savings at constant prices — a significant benefit. Large purchases like new vehicles ($30,000+) alone generate savings of $2,400+ per purchase vs Ontario.
Are groceries tax-exempt in Alberta like in Ontario?
Basic groceries (unprepared food) are exempt from GST in all of Canada — this is a federal rule. Alberta residents do not pay GST on basic groceries just as Ontario residents do not pay HST. The difference only arises on items that ARE taxable, where Alberta pays 5% vs Ontario's 13%.
Will Alberta ever introduce a PST?
There have been periodic political discussions about Alberta introducing a PST, particularly during fiscal downturns, but no Alberta government has enacted one. As of 2026, Alberta has no PST, and any introduction would require significant political will. Alberta's no-PST status is a consistent cost-of-living advantage for residents and businesses.
Does Alberta's no-PST advantage apply to business purchases too?
Yes — Alberta businesses benefit from no PST on inputs, capital equipment, and services that would be subject to PST in other provinces. For manufacturing, trades, and retail businesses, this can represent significant input cost savings. GST registered businesses claim input tax credits (ITCs) on GST paid, which largely neutralizes the GST effect on business purchases — but PST in other provinces is generally not recoverable by businesses.

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