Alberta is one of the few provinces that does not apply provincial sales tax. What Alberta imposes is only the 5% Goods and Services Tax. Alberta considered imposing the Alberta Sales Tax in the early 2000s but kept it at such low tax levels. Such a move has benefitted businesses looking to shift their operations in this area and for permanent residents.
There are some products that are exempt from GST, like basic groceries, prescription drugs, medical devices, and feminine hygiene products. Others include snack foods, liquor, and carbonated beverages.
What You Should Know About Alberta GST?
Alberta differs from most other provinces since it does not have a provincial sales tax. It, therefore, leaves residents only to pay the federal Goods and Services Tax (GST).
The current GST rate in Alberta is pegged at 5%. That is less than what most provinces with harmonized sales taxes charge their people in line with the federal government.
Essential items like groceries, health, and education services are exempt under GST.
How Does the Alberta GST Calculator Work?
Our calculator worked based on this simple Alberta hst calculation formula.
GST = Amount Before Tax x 0.05
To calculate Alberta GST on the total, multiply the total amount by 5% (or 0.05).
For example:
If the total amount is 6.99, GST would be $0.35 (6.99 x 0.05).
What is a Reverse GST calculator?
It is a calculation method that determines the original price of a product or service before all taxes are added. Our reverse GST calculator is useful when you know the total cost (including GST) and want to find the price without tax.
Reverse GST Formula:
Original Price (without taxes) = Total Price (Including taxes) / 1+GST Rate
