Tourists have to pay taxes in Canada.
Quoted prices on goods and services are always net and excluding Federal and Provincial taxes.
The price you see quoted is not the price you will end up paying.
Federal and provincial sales tax are added at the till.
How much tax you pay depends on the taxes per province and the product or service you buy.
Not many foreign travellers are familiar with these regulations. They often get surprised during their travel in Canada.....
Please realize I'm not a tax expert nor associated to any.
Although I try to keep up with tax changes in Canada, provided information may be outdated or incorrect. Please contact me in case you notice inaccuracies on this page.
On this page:
Different kinds of taxes
Taxes on Lodging
Excise taxes
Taxes per province
Examples of different kind of taxes in Canada
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Harmonized Sales Tax (HST) is a blended combination of PST and GST.
Accommodations to which taxes apply vary per province, region, and municipality.
Municipal and Regional District Tax (MRDT) is a local tax collected by the municipal, regional or provincial
governments. The
revenue is utilized to promote or support local (mostly tourism)
destinations.
Destination Marketing Fee (DMF) on the other hand is simply individual businesses deciding to
contribute funds to a joint marketing program. It is a business to
business contractual arrangement.
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Both the federal and provincial governments impose excise taxes on goods such as cigarettes and alcohol. Canada has some of the highest rates of taxes on cigarettes and alcohol in the world.
It is generally accepted that higher prices discourage consumption of these items which have been known to increase health care costs. This way the user indirectly pays extra for health care.
Alberta British Columbia Manitoba
New Brunswick Newfoundland and Labrador Northwest Territories
Prince Edward Island Quebec Saskatchewan
DMF: 3% Calgary, 3% Edmonton, 2% Jasper, 3% Canmore,2% Lethbridge, 2% Medicine Hat, 1% Camrose, 2% Grand Prairie, 1% Slave Lake, Corporate Hotel DMFs:3% Canalta Hotel Group,3% Pomeroy Group
Overview of Destination Marketing Programs in Ontario
All the different taxes in Canada can be confusing.
Here are some examples of my travel bills to make things clear.
My other half and I spent the night in a hostel in Banff, Alberta.
Quoted price per person per night: $35.00
x 2 units = $70.00
2 % TIF $ 1.40
5 % GST $ 3.57 (5% over $ 71.40)
4 % MRDT $ 2.86 (4% over $ 71.40)
Total costs $77.83
The next day we drove to Saskatchewan where we enjoyed dinner.
2 meals $13.95 each= $28.90
2 beer $ 5.25 each= $10.50
$39.40
5% GST $ 1.97 (5 % over $ 39.40)
10% LQT $ 1.05 (10% over $10.50)
Total excluding gratuity $42.42
15% Service $ 5.91 (15% over $39.40)
Total paid for dinner $48.33
Later that week we drove into Quebec. Pouring rain made us buy an umbrella.
1 Umbrella $14.95
5% GST $ 0.75
9.755% QST $ 1.49
Final bill $17.19
Sources
Government of Canada: Canada Revenue Agency