Sales tax in Alberta: the 5% combined rate explained
How the 5% combined sales tax in Alberta is made up and how to calculate it on any price.
Key facts
| Place | Alberta |
|---|---|
| Sales tax | Combined sales tax |
| Standard rate on file | 5% |
| Multiply net price by | 1.05 |
| Tax share of a gross price | 4.76% |
| Currency | CAD |
How Canada layers sales tax
Canada charges a 5% federal GST. Some provinces combine it with their provincial tax into a single harmonized sales tax (HST); others charge a separate provincial sales tax (PST, or QST in Quebec); and some charge GST only. The combined rate on file for Alberta is 5%.
Worked example
Here is the calculation with sample figures. Change any number in the Alberta Sales Tax Calculator to run your own.
| Price | CA$150.00 |
| Tax rate (%) | 5% |
| Tax | CA$7.50 |
|---|---|
| Price incl. tax | CA$157.50 |
What is taxable
Basic groceries, prescription drugs and some medical devices are zero-rated for GST/HST. Provincial taxes have their own exemptions, so the combined rate does not apply to everything.
Quick reference at 5%
Common amounts in Alberta, worked both ways: adding tax to a net price, and extracting it from a price that already includes tax.
| Amount | Tax on net amount | Gross (net + tax) | Net if amount includes tax |
|---|---|---|---|
| CA$10.00 | CA$0.50 | CA$10.50 | CA$9.52 |
| CA$50.00 | CA$2.50 | CA$52.50 | CA$47.62 |
| CA$100.00 | CA$5.00 | CA$105.00 | CA$95.24 |
| CA$250.00 | CA$12.50 | CA$262.50 | CA$238.10 |
| CA$500.00 | CA$25.00 | CA$525.00 | CA$476.19 |
| CA$1,000.00 | CA$50.00 | CA$1,050.00 | CA$952.38 |
| CA$5,000.00 | CA$250.00 | CA$5,250.00 | CA$4,761.90 |
How Alberta compares
Standard rates on file for other provinces and territories. A difference of a few points matters most on high-value purchases and on cross-border sales.
| Place | Rate on file | Compared with 5% |
|---|---|---|
| British Columbia | 12% | higher |
| Manitoba | 12% | higher |
| New Brunswick | 15% | higher |
Using the calculator step by step
- Open the Alberta Sales Tax Calculator.
- Type your figures into the numbered lines. Results update as you type.
- Check the rate field. It starts at 5%; change it if a reduced rate, local surcharge or exemption applies to you.
- Read the result on the receipt panel, and use the formula shown under it if you need to explain the figure to a client or colleague.
Key terms
- Deduction
- An amount subtracted from taxable income. It saves tax equal to the deduction times your marginal rate.
- Gross amount
- The amount after tax is added, which is usually what a consumer pays.
- Marginal rate
- The rate applied to the next unit of income. It decides how much of a raise or a deduction you keep.
- Taxable income
- Income left after allowances and deductions, on which the tax rates are applied.
- Zero rate
- A rate of 0% on a taxable supply. Unlike an exemption, the seller can usually still reclaim tax on costs.
Common mistakes to avoid
- Applying the combined rate to zero-rated items.
- Using another province's rate when shipping across provinces.
Run your own numbers. The Alberta Sales Tax Calculator updates as you type and shows the formula it uses.
Frequently asked questions
What is the sales tax rate in Alberta?
The combined rate on file is 5%.
Is GST charged on groceries in Canada?
Basic groceries are generally zero-rated.
This article is general information for planning, not tax advice. Rates and rules change; confirm with your tax authority or a qualified adviser.