How GST and QST Are Calculated
Comment se calculent la TPS et la TVQ
Quebec applies two separate consumption taxes to most purchases: the federal Goods and Services Tax (GST / TPS) at 5% and the provincial Quebec Sales Tax (QST / TVQ) at 9.975%. Both are calculated on the same pre-tax price — not on top of each other. Add them together and you get the total combined rate of 14.975%.
This was not always the case. Before April 1, 2013, the QST was calculated on the GST-inclusive price (a "tax on tax"), making the effective combined rate slightly above 14.975%. The 2013 reform brought Quebec’s system in line with the other provinces. At the same time, the QST rate was adjusted upward from 9.5% to 9.975% to keep total government revenue unchanged.
Unlike Ontario, Nova Scotia, and most Atlantic provinces, Quebec has not harmonized its provincial tax with the federal GST. Quebec maintains a fully separate tax administered by Revenu Québec — which is why Quebec businesses file two separate sales tax returns and why the two taxes appear as distinct line items on receipts.
Worked example — $150 purchase before tax
| Component | Rate | Amount |
|---|---|---|
| Pre-tax price | — | $150.00 |
| GST (federal) | 5.000% | $7.50 |
| QST (provincial) | 9.975% | $14.96 |
| Total price with tax | 14.975% | $172.46 |
Reverse calculation: working backwards from a tax-inclusive price
If you know the after-tax total and want to recover the pre-tax amount, divide by 1.14975:
| Calculation | Result |
|---|---|
| After-tax price | $172.46 |
| Pre-tax: $172.46 ÷ 1.14975 | $150.00 |
| GST: $150.00 × 5% | $7.50 |
| QST: $150.00 × 9.975% | $14.96 |
What is exempt from QST?
The most common exemptions are basic groceries (unprocessed foods), prescription drugs, most medical devices, long-term residential rents, and most financial services. Prepared food from restaurants, alcohol, electronics, clothing, and most consumer goods are fully taxable at 14.975%. Both taxes have nearly identical exemption lists — if a purchase is exempt from GST, it is almost always exempt from QST as well.
What is QST in Quebec?
The Quebec Sales Tax (QST), or Taxe de vente du Québec (TVQ), is a provincial consumption tax levied at 9.975% on most goods and services sold in Quebec. It is administered by Revenu Québec separately from the federal GST, which means Quebec businesses file two separate sales tax returns. Unlike provinces that use a Harmonized Sales Tax (HST), Quebec maintains its own provincial tax alongside the federal GST.
What is the total sales tax in Quebec?
The combined sales tax rate in Quebec is 14.975%, made up of the federal GST at 5% and the provincial QST at 9.975%. Both taxes are applied to the same pre-tax price, so you can simply multiply any price by 1.14975 to get the total with tax. Quebec has one of the higher combined sales tax rates in Canada, though it is slightly lower than provinces that use a 15% HST.
Is QST charged on top of GST?
No — not since April 1, 2013. Before that date, QST was calculated on the GST-inclusive price, making the effective combined rate slightly higher. Following the 2013 tax reform, QST is now calculated independently on the pre-tax price, the same base as GST. The QST rate was adjusted from 9.5% to 9.975% at the time of the reform to maintain equivalent government revenue.
What items are exempt from QST in Quebec?
A number of goods and services are exempt from QST, including basic groceries (unprocessed food), prescription drugs, most medical devices, certain financial services, and long-term residential rents. Many of the same items are also exempt from federal GST. Prepared food from restaurants, alcohol, and most consumer goods are fully taxable at the standard 14.975% rate. When in doubt, check the Revenu Québec website or consult an accountant.
How do I calculate QST manually?
To calculate QST on a pre-tax price, multiply the price by 0.09975. For GST, multiply by 0.05. To find the total price including both taxes, multiply by 1.14975. For example: a $200 purchase has $10.00 GST and $19.95 QST, for a total of $229.95. To reverse-calculate from a tax-inclusive price, divide by 1.14975 to get the pre-tax amount, then apply the rates as above.