Low-Cost GST/HST Return Adjustment for Canadian Businesses

Sales tax in British Columbia totals 12% for 2026: the 5% federal GST plus 7% provincial sales tax. BC is not harmonised, so the two run separately, with GST registered and filed with the CRA and PST with the province. A $100 taxable sale carries $5 GST and $7 PST. PST has its own exemptions, including most food for human consumption, so some sales take the 5% GST only.

GST is 5% in British Columbia for 2026, the same federal rate that applies everywhere in Canada. BC is not a harmonised province, so that 5% GST is charged alongside a separate 7% provincial sales tax, giving 12% on most taxable purchases. The two taxes have different exemption lists, which is why some items show 5% only. GST-registered businesses can recover the GST they pay on business inputs.

No. Ontario folded its former retail sales tax into the harmonised sales tax, so a single HST replaces the old GST plus PST pair on most sales, and registered businesses charge it, remit it and claim input tax credits on their own purchases. A narrow provincial retail sales tax still applies in a few places, notably certain insurance premiums and benefit plans and private vehicle sales between individuals. Those are administered by Ontario rather than the CRA.

Start with total income from every source for the year, including employment, self-employment, investments and pensions. Subtract the deductions you qualify for, such as RRSP contributions, child care costs, union dues and deductible employment expenses, to reach net income. Take off any further deductions that apply at the next stage, losses carried forward among them, and what remains is taxable income, the figure the brackets are applied to. Credits reduce the tax calculated on that figure rather than the income itself.

Multiply the pre-tax price by the rate that applies where the sale happens. In Ontario that is 13% HST for 2026; in Alberta 5% GST; in British Columbia 5% GST plus 7% PST, each applied to the same base. Quebec is the exception, where 9.975% QST is charged on the pre-GST price, giving 14.975% combined. To back the tax out of a tax-included price, divide by one plus the rate.

No. Quebec sits outside the HST system. You charge the 5% federal GST plus Quebec sales tax at 9.975%, applied to the pre-GST price, for a combined 14.975%. The two are reported separately, and QST is generally administered by Revenu Quebec rather than the CRA. If you sell into Quebec from another province, check on the Revenu Quebec site whether you must register for QST as well as GST/HST.

Extra withholding usually traces to a one-off amount: a bonus, retroactive raise, overtime, commission or vacation payout. Payroll taxes each cheque as if that amount repeated every period all year, so a bigger cheque is taxed at a higher implied rate. A third pay date in the month, a taxable benefit newly added to your earnings, or CPP and EI restarting in January also move the total. Over-withholding comes back when your return is assessed.

Zero-rated supplies are taxable supplies that carry tax at 0%. The main groups are basic groceries, prescription drugs, most medical devices, agricultural and fishing products, exports, and many international freight and passenger services. Because they remain taxable supplies, the seller charges no tax yet still claims input tax credits on related costs, which often produces a refund. That is the practical difference from exempt supplies, where no credits are available. The CRA guide lists each category.

Ask the employer first, since slips are due to employees by the end of February for the prior year. If it still does not come, most T4 information appears in My Account and can be pulled into most tax software using auto-fill my return. Failing that, file on time using your pay records and final pay stub and estimate the amounts. Filing late costs more than a small estimating error, and you can correct the figures afterwards with a T1-ADJ.

A private creditor cannot take a refund from the CRA directly. CRA itself can apply your refund against tax you owe, and under federal set-off it can be redirected to other government debts such as defaulted student loans or benefit overpayments. Once the money reaches your bank account it is an ordinary asset, so a collection agency holding a court judgment and a garnishment order can seize it there. Unpaid tax is not reported to credit bureaus, although CRA can register a lien.

A reimbursement of actual travel costs you paid, supported by receipts, is not income. A flat travel allowance is generally taxable unless it is a reasonable per-kilometre allowance for business driving; for 2026 the CRA's reasonable rate is 73 cents per kilometre for the first 5,000 kilometres and 67 cents after that, four cents more in the territories. Allowances above a reasonable amount, or paid without a distance record, are added to your T4 income.

Marital status does not change your tax rates, but it changes what you claim and what you receive. Once you are married or living common-law, the CRA treats you as a couple for income-tested amounts, so the GST/HST credit, the Canada child benefit and similar payments are calculated on combined income. In return, couples may claim the spouse or common-law partner amount, transfer certain unused credits, split eligible pension income, and pool donations and medical expenses.