Canadian Contractor Tax Guide 2026: Sales Tax by Province

Canadian contractors need two answers before adding tax to an invoice: which federal GST/HST rate applies to the supply, and whether a separate provincial sales tax applies to the goods or services involved. The table below is a 2026 starting point, not a substitute for classifying the actual supply.

2026 sales tax snapshot

Rates alone do not establish whether a line is taxable. Zero-rated and exempt supplies exist, and the place-of-supply rules can point to a province other than the contractor's home province. The CRA place-of-supply guide says the applicable GST/HST rate depends on what is supplied and where the supply is made.

Registration before collection

For most businesses, the common GST/HST small-supplier test is $30,000 or less in worldwide taxable supplies, including zero-rated supplies, in a single calendar quarter and over the previous four consecutive calendar quarters. The calculation includes associated persons and excludes specified amounts. Exceptions apply to some activities, so use the CRA small-supplier guidance for the timing that fits your facts.

In Quebec, Revenu Québec uses the same $30,000 small-supplier framework for ordinary GST/QST registration and explains voluntary registration, input tax credits, and input tax refunds in its small-supplier guide.

Do not collect GST, HST, or QST merely because a calculator offers the rate. Confirm that you are registered or required to register, then place the correct registration number on the supporting invoice when required.

Provincial tax is not one national rule

British Columbia, Saskatchewan, and Manitoba do not use the same contractor model. A 7% or 6% rate in a table does not mean every labour-and-materials invoice should receive that percentage on its full subtotal.

• British Columbia publishes dedicated PST guidance for real property contractors covering when contractors pay PST on goods, charge a customer, or document an exemption.
• Saskatchewan states that its 6% PST applies to taxable goods and services consumed or used in the province and provides separate bulletins and contractor clearance rules through its PST portal.
• Manitoba states that RST is generally 7% before GST. Its contractor bulletin distinguishes taxable goods and services from work involving real property.

For a B.C. invoice, start with BC Invoice & PST Guide for Contractors 2026 | GST 5% + PST 7%. It explains why the taxable base must be confirmed before using the general rate.

Calculate only after classifying the supply

Once you know the applicable tax and taxable base, use the relevant calculator

These tools perform arithmetic using the displayed general rates. They cannot determine registration status, place of supply, exemptions, or whether a provincial tax applies to a particular contractor line.

Invoice and record controls

Use Tax Invoice Requirements Canada: GST/HST Checklist for the GST/HST and Quebec documentation checklist by invoice amount. A practical contractor invoice should also identify the client, service location, contract or work-order reference, labour, materials, approved changes, subtotal, each applicable tax, payment terms, and total due.

Registrants may be able to claim input tax credits for GST/HST paid or payable on eligible business purchases, but the claim requires supporting documents. The CRA input tax credit guide lists the invoice information needed at different transaction values.

The CRA says records supporting GST/HST returns usually must be kept for six years from the end of the last year to which they relate. Keep the estimate, contract, invoice, receipts, tax calculation, credit notes, and payment record together rather than retaining only the final PDF. See the CRA collection and record guidance.

Filing frequency and deadlines

The CRA normally assigns annual GST/HST reporting when annual taxable supplies are $1.5 million or less, quarterly reporting above $1.5 million through $6 million, and monthly reporting above $6 million. Elections and special cases can change the period. Confirm the assigned period in your account and use the CRA reporting-period guidance rather than assuming a deadline from revenue alone.

Even when no net tax is payable, a registrant generally still has to file the return for each assigned reporting period. Payment and filing deadlines differ for some annual filers; use the CRA reporting requirements and deadlines and verify the dates shown in your CRA or Revenu Québec account.

Before sending a contractor invoice

• Confirm registration status for each tax you intend to collect.
• Identify the type of supply and its place of supply.
• Check the current official federal and provincial guidance.
• Separate lines when goods and services receive different treatment.
• Apply only the taxes supported by that classification.
• Show the correct registration numbers and tax amounts.
• Retain the source documents and calculation with the invoice.

After the tax treatment is confirmed, create the client PDF in invoice generator and review every rate and registration number before sending it.

Is every contractor required to register at exactly $30,000?

R: The $30,000 small-supplier test is the common GST/HST and Quebec framework for ordinary businesses, but exceptions and timing rules apply. Use the official registration guidance for your facts.

Do I always add PST to materials and not labour?

R: No. Provincial rules differ, and contractor treatment can depend on the type of contract, property, goods, and service. Check the responsible province before choosing the taxable base.

Does the client's address determine the GST/HST rate?

R: Not by itself. The CRA place-of-supply rules depend on the type of supply and the facts of delivery or performance.

Can the calculators decide whether my work is taxable?

R: No. They calculate the rates you select after you have confirmed the tax treatment.