EBITDA

HST combines the 5% federal GST with a provincial component in five participating provinces. For 2026 the combined rates are 13% in Ontario, 15% in New Brunswick, Newfoundland and Labrador, and Prince Edward Island, and 14% in Nova Scotia since 1 April 2025. Elsewhere you charge the 5% GST alone, or GST plus a separate provincial tax. The rate follows the province of supply, not where your business sits.

A non-refundable credit reduces the tax you owe to zero but no further, so any unused part is lost, carried forward, or transferred to a spouse or parent where the rule allows it. A refundable credit is paid to you even when no tax is owed, which is how benefit-style payments reach people with little or no income. Most personal credits on the federal return, including the basic personal amount, are non-refundable.

Line 23600 is net income on the T1 return, being total income less deductions such as RRSP contributions, union dues, childcare and support payments. It sits above taxable income, which is calculated further down after additional deductions. Net income matters because the CRA uses it to test income-tested benefits and credits, including the Canada Child Benefit and the GST/HST credit. You will find the figure on the return itself and on your notice of assessment.

The credit once called equivalent to spouse is now the amount for an eligible dependant. You may claim it where you were single, separated, divorced or widowed at some point in the year, had no supporting spouse or common-law partner, and maintained a home in which a dependent relative lived with you, usually a child, parent or grandparent. Only one person may claim a given dependant, and only one such claim is allowed per household for the year.