Quebec is the only Canadian province that administers its own consumption tax entirely separately from the federal government. Purchases in Quebec are subject to two taxes: the federal 5% Goods and Services Tax (GST) administered by Revenu Québec on behalf of the Canada Revenue Agency, and the 9.975% Quebec Sales Tax (QST) administered by Revenu Québec under the Act Respecting the Quebec Sales Tax (ARQST). The combined rate is 14.975% on most taxable supplies.
A key structural feature: since January 1, 2013, Quebec’s QST is calculated on the selling price before GST. This removed the previous “tax on tax” structure (where QST was calculated on the GST-inclusive price) and aligned QST with the national harmonized tax model.
Quick Answer
On a $500 taxable purchase in Quebec, GST = $25.00 (5%) and QST = $49.88 (9.975%), for a combined tax of $74.88 and a total of $574.88. Both taxes are calculated on the pre-tax price of $500, not on each other.
How Quebec GST and QST Work
GST applies at 5% on the selling price. QST applies at 9.975% on the same selling price (since 2013). The two taxes are mathematically independent: each is based on the original price, not the GST-inclusive amount.
- GST = Price x 0.05
- QST = Price x 0.09975
- Total tax = Price x 0.14975
- Total with taxes = Price x 1.14975
Before January 1, 2013, the QST formula was: QST = (Price + GST) x 0.09975, which produced a slightly higher effective QST. The 2013 reform to “QST on base price” harmonized Quebec’s method with the HST provinces while maintaining a separate administration.
Revenu Québec Administration
Quebec is unique in Canada: Revenu Québec collects both federal GST and provincial QST within Quebec. The Canada Revenue Agency and Revenu Québec operate under a tax collection agreement. Quebec businesses register for both taxes with Revenu Québec, file combined or separate returns with Revenu Québec, and remit to Revenu Québec. This is different from all other provinces where GST is registered and remitted directly to CRA.
QST Exemptions and Zero-Rating
Quebec’s QST exemption list generally mirrors the federal GST list, with some Quebec-specific variations:
- Zero-rated (0% QST): Basic groceries, prescription drugs, most medical devices
- Exempt: Residential rent, most health-care services, most educational services, financial services
- QST-specific: Books are zero-rated under QST (5% GST applies); municipalities and qualifying non-profits receive QST rebates; used residential properties are exempt from QST
Input Tax Refunds (ITRs)
Quebec’s equivalent of GST input tax credits is called an Input Tax Refund (ITR) for QST. Registered Quebec businesses claim ITRs on QST paid on eligible business inputs to offset QST collected on sales. The mechanism mirrors the federal ITC system. Businesses file QST returns with Revenu Québec and receive ITR refunds or apply them against QST owing.
Worked Example
A Montreal web developer sells a $5,000 website project to a local client. GST: $5,000 x 5% = $250. QST: $5,000 x 9.975% = $498.75. Invoice total: $5,748.75. The developer separately paid $600 GST and $1,197 QST on equipment and software used for the project. GST net remittance: $250 – $600 = ($350) refund from CRA via Revenu Québec. QST net remittance: $498.75 – $1,197 = ($698.25) ITR refund from Revenu Québec.
Quebec GST+QST vs Other Provinces
| Province | Rate | Type | Administered by |
|---|---|---|---|
| Quebec | 14.975% | GST+QST | Revenu Québec |
| Alberta | 5% | GST only | CRA |
| BC | 12% | GST+PST | CRA + BC MoF |
| Ontario | 13% | HST | CRA |
| Atlantic | 15% | HST | CRA |
| Saskatchewan | 11% | GST+PST | CRA + SK MoF |
QST Registration
Businesses making taxable supplies in Quebec with annual taxable revenues exceeding $30,000 (same threshold as GST) must register for QST with Revenu Québec. Out-of-province businesses that make taxable supplies to Quebec consumers may also have QST registration obligations under the “specified registration system” introduced in 2019 for digital economy suppliers.
Solidarity Tax Credit
Quebec residents may be eligible for the Solidarity Tax Credit, a refundable credit that offsets QST paid on consumption. The credit amount depends on family situation, housing type (renter vs. homeowner vs. northern resident), and income. It is calculated annually on the Quebec provincial income tax return (TP-1) and paid in monthly instalments. For 2026, the maximum credit is approximately $1,883 for a couple renting in a northern village.
Edge Cases and Rules
- Books purchased in Quebec pay GST (5%) but not QST (books are zero-rated under ARQST). This differs from digital e-books, which are taxable under both GST and QST.
- Non-resident businesses providing digital services to Quebec consumers must register under the “specified system” (a simplified registration without ITR eligibility) if their Quebec revenues exceed $30,000 in a calendar year.
- Quebec municipalities pay QST on most purchases and receive a 50% QST rebate under the ARQST. School boards and hospitals receive separate rebate rates.
- Gasoline purchased in Quebec is subject to GST and QST plus Quebec’s fuel tax ($0.193/litre as of 2026) and the Montreal agglomeration fuel tax in Montreal area. All these are separate from QST.
Frequently asked questions
- What are the GST and QST rates in Quebec?
- Quebec charges 5% GST (federal) and 9.975% QST (provincial). Since January 1, 2013, both are calculated on the pre-tax purchase price. The combined rate is 14.975%.
- How do I calculate GST and QST in Quebec?
- Multiply the pre-tax price by 0.05 for GST and by 0.09975 for QST. The combined tax multiplier is 0.14975. Example: $200 item: GST = $10, QST = $19.95, total = $229.95.
- Is QST calculated on top of GST?
- No, not since January 1, 2013. Both GST and QST are now calculated independently on the pre-tax selling price. Before 2013, QST was applied to the GST-inclusive amount, producing a slightly higher effective rate. The current formula is GST = Price x 0.05; QST = Price x 0.09975.
- Who collects GST in Quebec?
- Revenu Québec collects both GST and QST in Quebec under a tax collection agreement with the Canada Revenue Agency. Quebec businesses register, file returns, and remit both taxes to Revenu Québec, not directly to CRA.
- Are books exempt from QST in Quebec?
- Yes. Physical books are zero-rated under the Act Respecting the Quebec Sales Tax (ARQST), so no QST applies. GST at 5% still applies to books in Quebec. Digital e-books are taxable under both GST and QST.
- What is a Quebec Input Tax Refund (ITR)?
- An Input Tax Refund (ITR) is the QST equivalent of a GST input tax credit. Registered Quebec businesses claim ITRs on QST paid on eligible business inputs, reducing the net QST they must remit to Revenu Québec.
- What is the Quebec Solidarity Tax Credit?
- The Solidarity Tax Credit (crédit d'impôt pour solidarité) is a refundable provincial tax credit that compensates low- and moderate-income Quebec residents for QST paid on consumption. It is claimed on the TP-1 provincial return and paid in monthly instalments. Eligibility and amount depend on income, family situation, and housing type.
- Do out-of-province businesses owe QST on sales to Quebec customers?
- Yes, if their taxable supplies to Quebec consumers exceed $30,000 in a calendar year. Quebec introduced a 'specified registration system' in 2019 requiring non-resident digital economy suppliers to register for QST. Registered out-of-province suppliers collect and remit QST but generally cannot claim ITRs under the specified system.
- How do I back-calculate taxes from a Quebec receipt total?
- Divide the tax-included total by 1.14975 to get the pre-tax base. Multiply the base by 0.05 for GST and by 0.09975 for QST. Example: $229.95 total: base = $200; GST = $10; QST = $19.95.
- Is residential rent taxed in Quebec?
- No. Residential rent is an exempt supply under both the federal Excise Tax Act and Quebec's ARQST. Landlords do not collect GST or QST on monthly rent for residential units and cannot claim ITCs or ITRs on residential rental expenses.
- What are the QST registration requirements for Quebec businesses?
- Quebec businesses making taxable supplies with annual revenues exceeding $30,000 must register for QST with Revenu Québec. The threshold matches the federal GST registration threshold. Small suppliers below $30,000 may register voluntarily to claim ITRs. Registration is at revenuquebec.ca.