Use this calculator to find the sales tax on purchases in Alberta. Alberta charges only the 5% federal GST with no provincial sales tax (PST), making it the lowest sales tax jurisdiction in Canada alongside the three territories (Yukon, NWT, Nunavut).
You can also enter the total amount after tax to reverse-calculate the pre-tax price.
How Alberta’s sales tax works
Alberta is unique among the provinces because it has never implemented a provincial sales tax. The only tax on goods and services is the federal GST:
| Component | Rate |
|---|---|
| Federal GST | 5% |
| Provincial sales tax | 0% |
| Total sales tax | 5% |
This means Alberta residents pay 6-10% less in sales tax on every purchase compared to residents in other provinces. On a $50,000 vehicle, an Albertan saves $3,000-$5,000 in sales tax compared to someone in Ontario (13%) or Atlantic Canada (15%).
Why Alberta has no PST
Alberta has historically funded provincial services through oil and gas royalties rather than a sales tax. While other provinces rely on PST/HST for revenue, Alberta’s energy sector has provided sufficient revenue to avoid imposing a consumer sales tax. Despite periodic public debate — particularly when oil prices drop — no provincial government has introduced a PST.
Quick GST calculation examples
Here are common purchase amounts with Alberta’s 5% GST:
| Purchase Price | GST (5%) | Total Cost |
|---|---|---|
| $50 | $2.50 | $52.50 |
| $100 | $5.00 | $105.00 |
| $500 | $25.00 | $525.00 |
| $1,000 | $50.00 | $1,050.00 |
| $5,000 | $250.00 | $5,250.00 |
| $25,000 | $1,250.00 | $26,250.00 |
| $50,000 | $2,500.00 | $52,500.00 |
Formula: Total = Purchase Price × 1.05
How much Alberta residents save with no PST
The savings from having no provincial sales tax are substantial, particularly on large purchases:
| Purchase | Price | Alberta Total | Ontario Total (13%) | Atlantic Total (15%) | Alberta Savings vs Ontario |
|---|---|---|---|---|---|
| New vehicle | $45,000 | $47,250 | $50,850 | $51,750 | $3,600 |
| Home renovation | $30,000 | $31,500 | $33,900 | $34,500 | $2,400 |
| Annual groceries (taxable) | $5,000 | $5,250 | $5,650 | $5,750 | $400 |
| Furniture | $4,000 | $4,200 | $4,520 | $4,600 | $320 |
Over a year, an average Alberta household saves an estimated $1,500-$2,500 compared to residents in HST provinces.
What is exempt from GST in Alberta?
Even the 5% GST does not apply to all purchases. Some items are zero-rated or exempt:
Zero-rated items (0% GST):
- Basic groceries (milk, bread, vegetables, meat, etc.)
- Prescription drugs
- Most medical devices
- Agricultural products
Exempt items (no GST charged):
- Most health and dental services
- Educational services (tuition)
- Childcare services
- Residential rent
- Most financial services
How Alberta compares to other provinces
| Province | GST | PST | HST | Total Rate |
|---|---|---|---|---|
| Alberta | 5% | 0% | — | 5% |
| Yukon/NWT/Nunavut | 5% | 0% | — | 5% |
| Saskatchewan | 5% | 6% | — | 11% |
| British Columbia | 5% | 7% | — | 12% |
| Manitoba | 5% | 7% | — | 12% |
| Ontario | — | — | 13% | 13% |
| Quebec | 5% | 9.975% | — | 14.975% |
| Atlantic provinces | — | — | 15% | 15% |
Alberta ties with the three territories for the lowest sales tax in Canada at just 5%.
GST credit for Alberta residents
Alberta residents can receive the GST/HST credit — a quarterly payment from the CRA for low and moderate-income individuals:
- Single person: Up to $519/year
- Married/common-law couple: Up to $680/year
- Per child under 19: Additional $179/year
The credit is automatic when you file your tax return. Alberta also offers the Alberta Climate Leadership Adjustment Rebate and other provincial benefits.
Alberta’s overall tax advantage
Beyond no PST, Alberta offers several tax advantages:
- No land transfer tax: Alberta does not charge land transfer tax on property purchases, a major saving for homebuyers
- Lowest provincial income tax: Alberta has a flat 10% starting rate — the lowest first bracket rate in Canada
- No health premium: Unlike Ontario, Alberta does not charge a separate health premium
- No payroll tax: Unlike some provinces, employers in Alberta don’t pay a provincial payroll tax
These combined advantages make Alberta one of the most tax-friendly provinces for both individuals and businesses. See the average income in Alberta and the Alberta mortgage rates for more context.
Frequently asked questions
What is the sales tax in Alberta?
Alberta charges only the 5% federal GST. There is no provincial sales tax, making it the lowest sales tax rate in Canada.
Why does Alberta have no provincial sales tax?
Alberta has historically relied on oil and gas royalties to fund provincial services, avoiding the need for a consumer sales tax. No provincial PST has ever been implemented.
Does Alberta have HST?
No. Alberta does not participate in the HST system. Only the 5% federal GST applies.
How much do Alberta residents save from having no PST?
On average, an Alberta household saves approximately $1,500-$2,500 per year compared to residents in HST provinces (13-15% total sales tax).
Related guides
- Alberta tax brackets
- Alberta mortgage rates
- Average income in Alberta
- Alberta land transfer tax calculator
- Canada sales tax by province
- Alberta capital gains tax calculator
