1. What is GST/QST in Quebec?

Quebec has a combined sales tax system with federal GST (Goods and Services Tax) and provincial QST (Quebec Sales Tax). As of 2024, the rates are 5% for GST and 9.975% for QST. QST is applied after GST is added to the base amount.

2. How Does the Calculator Work?

The calculator uses the Quebec tax formula:

Where:

• \( Amount \) — Pre-tax amount in Canadian dollars
• \( 1.05 \) — Represents 5% GST
• \( 1.09975 \) — Represents 9.975% QST (applied after GST)

Explanation: The QST is calculated on the amount after GST has been added, resulting in slightly higher total tax than simply adding 14.975%.

3. Current Quebec Tax Rates

Details: As of 2024, the combined effective tax rate in Quebec is 15.487% (not 14.975%) because QST is applied to the GST-included amount.

4. Using the Calculator

Tips: Enter any pre-tax amount in Canadian dollars. The calculator will show the total with taxes, plus the individual GST and QST amounts.

5. Frequently Asked Questions (FAQ)

Q1: Why isn't the total tax simply 14.975%?
A: Because QST is calculated on the amount after GST has been added (tax on tax), making the effective rate slightly higher.

Q2: Are all goods and services taxed in Quebec?
A: Most are, but there are exceptions like basic groceries, prescription drugs, and certain medical devices which are GST/QST exempt.

Q3: How does this compare to other provinces?
A: Quebec has the second highest combined sales tax rate after the Atlantic provinces (15% HST). Ontario has 13% HST.

Q4: Can businesses claim input tax credits?
A: Yes, registered businesses can generally claim credits for GST/QST paid on business expenses.

Q5: When did QST change to 9.975%?
A: The QST rate increased from 9.975% to 9.975% on January 1, 2013, and has remained at this rate since.