Quebec Sales Tax Formula:
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Quebec has a combined sales tax system consisting of the federal Goods and Services Tax (GST) and the provincial Quebec Sales Tax (QST). The GST is 5% and the QST is 9.975%, applied sequentially.
The calculator uses the Quebec sales tax formula:
Where:
Details: Quebec has the following tax rates:
Tips: Enter the pre-tax amount in Canadian dollars. The calculator will compute both taxes and the total amount including taxes.
Q1: Why is QST applied after GST?
A: In Quebec, the provincial QST is calculated on the price after the federal GST has been added, making it a tax on tax.
Q2: Are there any exemptions?
A: Yes, certain items like basic groceries, prescription drugs, and some services are exempt from one or both taxes.
Q3: Is the combined rate simply 14.975%?
A: No, because QST is applied after GST, the effective combined rate is slightly higher (15.5%).
Q4: Do tourists pay these taxes?
A: Yes, but non-residents may be eligible for GST/HST rebates on certain goods when exported.
Q5: How does this compare to other provinces?
A: Quebec is unique in applying provincial tax after federal tax. Most provinces have a harmonized sales tax (HST) with a single rate.