Quebec Tax Formula:
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Quebec has a dual sales tax system consisting of the federal Goods and Services Tax (GST) and the provincial Quebec Sales Tax (QST). The GST rate is 5% and the QST rate is 9.975%.
The calculator uses the Quebec tax formula:
Where:
Explanation: The GST is calculated first on the original price, then the QST is calculated on the price including GST.
Details: Quebec applies GST (5%) first, then QST (9.975%) on the GST-included amount. This differs from most provinces that apply HST as a single tax.
Tips: Enter the price before taxes in Canadian dollars. The calculator will show the breakdown of GST and QST, total tax, and final amount.
Q1: Why is QST calculated on top of GST?
A: Quebec's tax system applies QST on the GST-included amount, making it effectively a tax on tax.
Q2: What is the combined tax rate in Quebec?
A: The effective combined rate is approximately 14.975% (not simply 5% + 9.975%).
Q3: Are all items subject to both taxes?
A: Most goods and services are subject to both, but some items may be exempt from one or both taxes.
Q4: Do tourists pay these taxes?
A: Yes, but GST may be refundable for non-residents under certain conditions. QST is generally not refundable.
Q5: How does this compare to other provinces?
A: Most provinces use HST (Harmonized Sales Tax) at varying rates. Quebec is unique in applying QST separately on top of GST.