If you have ever looked at a receipt and wondered why the amount was higher than the price on the shelf, taxes are probably the reason.
In Canada, some provinces charge a Provincial Sales Tax (PST) on many goods and services.
Understanding how PST works can help you better understand your receipts and why the amount you pay can vary depending on where you live.
What Is PST?
PST stands for Provincial Sales Tax.
It is a tax charged by certain provinces on many products and services. Unlike the Goods and Services Tax (GST), which is collected by the federal government, PST is set and collected by individual provinces.
Not every province has a PST.
Which Provinces Have PST?
Some provinces charge a separate provincial sales tax, including:
British Columbia
Saskatchewan
Manitoba
Quebec has a similar tax called the Quebec Sales Tax (QST).
Other provinces combine their provincial tax with the GST into a single tax called the Harmonized Sales Tax (HST).
How Is PST Different From GST?
The Goods and Services Tax (GST) is a federal tax that applies across Canada.
PST is a provincial tax that only exists in certain provinces.
In places where both taxes apply, you may see two separate amounts on your receipt:
GST
PST
The total sales tax you pay depends on where you live.
What About HST?
Some provinces use the Harmonized Sales Tax (HST) instead.
HST combines the federal GST and the provincial portion into a single tax.
Rather than seeing separate GST and PST amounts, you will usually see one HST amount on your receipt.
Why Doesn’t Alberta Have PST?
Alberta is unique because it does not have a provincial sales tax.
Residents of Alberta only pay the federal GST on most purchases.
This is one reason Alberta is often considered one of the lower-tax provinces when it comes to everyday spending.
What Is PST Used For?
Like other taxes, PST helps provincial governments pay for public services and infrastructure.
Tax revenue helps support things such as:
Health care
Education
Roads and transportation
Provincial programs and services
Fresh Tip 
If you live in Alberta, you only pay the federal GST because Alberta does not have a provincial sales tax. If you move to another province, you may notice that your receipts look very different.
Learn More
Bottom Line
PST stands for Provincial Sales Tax and is charged by some provinces on many goods and services.
Not every province has one, and the amount of sales tax you pay depends on where you live. Understanding the difference between PST, GST, and HST can make it easier to understand your receipts and how taxes work in Canada.