Understanding GST and QST calculation
Two taxes, one calculation base
In Quebec, a pre-tax price has the 5% federal GST and the 9.975% QST added to it. Both apply to the same amount — the one before tax. There has been no cascade since 1 January 2013: before that date, QST was calculated on the GST-included price, at a rate of 9.5%. The reform was revenue-neutral — 9.5% × 1.05 is exactly 9.975% — which is why the mistake still goes unnoticed among those who apply today's rate to the old base.
Working back to the pre-tax amount
This is the most requested calculation: you have a tax-included total and need to isolate the pre-tax portion, for instance to record a receipt. In Quebec, divide the tax-included amount by 1.14975. A total of $114.98 therefore corresponds to $100.00 before tax, $5.00 of GST and $9.98 of QST. Cent rounding does not always land cleanly: a one-cent gap can appear between the sum of the breakdown and the amount entered. The calculator reallocates it to the largest tax so the breakdown matches exactly what you typed.
Rates in other provinces
Ontario applies 13% HST, Nova Scotia 14% since 1 April 2025, and New Brunswick, Newfoundland and Labrador and Prince Edward Island 15%. British Columbia adds 7% PST on top of GST, Saskatchewan 6%, and Manitoba a 7% retail sales tax. As in Quebec, these provincial taxes apply to the pre-GST price, with no compounding. Alberta, the Northwest Territories, Nunavut and Yukon collect only the 5% GST.
And in France
French mainland VAT has a standard rate of 20%, an intermediate rate of 10%, a reduced rate of 5.5% and a special rate of 2.1%. The calculator offers all four, in both directions.