1. What is TPS and TVQ?

TPS (Taxe sur les Produits et Services) is the Canadian federal goods and services tax, while TVQ (Taxe de Vente du Québec) is the provincial sales tax in Quebec. These taxes apply to most goods and services purchased in Quebec.

2. How Are Taxes Calculated?

The calculator uses these formulas:

Where:

• \( Price \) — The base price before taxes
• \( 0.05 \) — Current TPS rate (5%)
• \( 0.09975 \) — Current TVQ rate (9.975%)

Note: TVQ is calculated on the price after TPS has been added (tax on tax).

3. Current Tax Rates (2025)

Details: As of 2025, the TPS rate remains at 5% across Canada. The TVQ rate in Quebec is 9.975%.

4. Using the Calculator

Tips: Enter the base price before taxes in Canadian dollars. The calculator will compute both taxes and the total amount to pay.

5. Frequently Asked Questions (FAQ)

Q1: Are all products subject to TPS and TVQ?
A: Most goods and services are taxable, but there are exceptions like basic groceries, prescription drugs, and certain medical devices.

Q2: Why is TVQ calculated on the price including TPS?
A: Quebec's sales tax is applied to the total after federal tax has been added, which is different from some other provinces.

Q3: Do visitors pay these taxes?
A: Yes, but visitors may be eligible for rebates on certain purchases when leaving Canada.

Q4: Have these tax rates changed recently?
A: The TPS rate has been stable at 5% since 2008. The TVQ rate was increased to 9.975% in 2023.

Q5: Are there different rates for different products?
A: Some products like alcohol, tobacco, and fuel have additional excise taxes beyond TPS/TVQ.