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What's taxable and what's not?

On April 1, 2013, the harmonized sales tax (HST) came into effect in Prince Edward Island.

1. What is the HST?

The federal 5% Goods and Services Tax (GST) was combined with a reduced 9% Provincial Tax to create a single 14% Harmonized Sales Tax (HST) for Prince Edward Island.

2. What do I need to know about HST?
  • The Province will NOT tax home heating oil, or children's clothing, children's footwear and books.
  • Most items purchased by Islanders will see a decrease in the taxes applied.
  • Low and modest income households will receive a rebate.
  • HST will help business to grow and create more jobs on the Island.

3. How will HST affect what I buy?

Please review the table below to see examples of common products and services and how they are affected by the HST.


4.  Where can I get more information?

To find out more about the HST, vist www.peihst.ca or e-mail hst@gov.pe.ca.


HST is a tax administered by the federal government through the Canada Revenue Agency.  If you have specific questions on how the HST applies to your business or whether a good or service is taxable under the HST, you can contact them at 1-800-959-5525 for assistance.



  GST
Rate
PST
Rate
Total Tax Rate
Under GST
Tax Rate After
Move to HST
FOOD AND BEVERAGES
Basic groceries No GST No PST No Tax No HST
No change
Snack foods 5.0% 10.50% 15.5% 14%
(Decrease)
Prepared food 5.0% 10.50% 15.5% 14%
(Decrease)
Restaurant meals 5.0% 10.50% 15.5% 14%
(Decrease)
AROUND THE HOUSE
Cleaning products 5.0% 10.50% 15.5% 14%
(Decrease)
Laundry detergent, fabric softener 5.0% 10.50% 15.5% 14%
(Decrease)
Furniture 5.0% 10.50% 15.5% 14%
(Decrease)
Refrigerators and freezers 5.0% 10.50% 15.5% 14%
(Decrease)
Computer software, excluding custom software 5.0% 10.50% 15.5% 14%
(Decrease)
Custom software 5.0% No PST 5.0% 14%
Increase
Books 5.0% No PST 5.0% 5%
No change
Audio books 5.0% No PST 5.0% 5%
No change
Newspapers 5.0% No PST 5.0% 14%
Increase
Office supplies 5.0% 10.50% 15.5% 14%
(Decrease)
School supplies 5.0% No PST 5.0% 14%
Increase
Landscaping materials 5.0% 10.50% 15.5% 14%
(Decrease)
Linens 5.0% 10.50% 15.5% 14%
(Decrease)
Tents, sleeping bags, camping supplies 5.0% 10.50% 15.5% 14%
(Decrease)
Tools 5.0% 10.50% 15.5% 14%
(Decrease)
Patio furniture 5.0% 10.50% 15.5% 14%
(Decrease)
Pet food 5.0% 10.50% 15.5% 14%
(Decrease)
Barbeques, lawnmowers, snowblowers, sprinklers 5.0% 10.50% 15.5% 14%
(Decrease)
Toys (e.g., puzzles, games, action figures, dolls, playsets) 5.0% 10.50% 15.5% 14%
(Decrease)
Craft supplies 5.0% 10.50% 15.5% 14%
(Decrease)
Outdoor play equipment 5.0% 10.50% 15.5% 14%
(Decrease)
Building materials (e.g., lumber, concrete mix) 5.0% 10.50% 15.5% 14%
(Decrease)
Magazines purchased at retail 5.0% 10.50% 15.5% 14%
(Decrease)
Magazines purchased by subscription 5.0% No PST 5.0% 14%
Increase
HOME SERVICES
Cable television services 5.0% 10.50% 15.5% 14%
(Decrease)
Cell phone services 5.0% 10.50% 15.5% 14%
(Decrease)
Municipal water No GST No PST No Tax No HST
No change
Home maintenance equipment (e.g., vacuums) 5.0% 10.50% 15.5% 14%
(Decrease)
Telephone service 5.0% 10.50% 15.5% 14%
(Decrease)
Repairs to goods 5.0% 10.50% 15.5% 14%
(Decrease)
Cleaning services (e.g., housekeeping) 5.0% No PST 5.0% 14%
Increase
Electricity 5.0% No PST 5.0% 14%
Increase
Heating oil 5.0% No PST 5.0% 5%
No change
Other home heating products 5.0% No PST 5.0% 14%
Increase
ACCOMMODATION, TRAVEL AND PASSENGER TRANSPORTATION SERVICES
Luggage 5.0% 10.50% 15.5% 14%
(Decrease)
Parking 5.0% No PST 5.0% 14%
Increase
Municipal public transit No GST No PST No Tax No HST
No change
Air travel originating in PEI to the US (excluding Hawaii) or the islands of St. Pierre and Miquelon 5.0% No PST 5.0% 5%
No change
Air travel originating in PEI to other international destinations No GST No PST No Tax No HST
No change
Hotel rooms 5.0%  10.50% 15.5% 14%
(Decrease)
Taxis 5.0% No PST 5.0% 14%
Increase
Camp sites 5.0%  No PST 5.0% 14%
Increase
Domestic air and bus travel originating on PEI 5.0% No PST  5.0% 14%
Increase
CLOTHING AND FOOTWEAR
Adult clothing 5.0% No PST 5.0%  14%
Increase
Adult footwear 5.0% No PST 5.0%  14%
Increase
Children's clothing 5.0% No PST  5.0% 5%
No change
Children's footwear 5.0% No PST 5.0% 5%
No change
Shoe repair 5.0% No PST 5.0% 14%
Increase
Tailoring services 5.0% No PST 5.0% 14%
Increase
Dry Cleaning 5.0% 10.50% 15.5% 14%
(Decrease)
MOTORIZED VEHICLES
Vehicle parts 5.0% 10.50% 15.5%  14%
(Decrease)
Short-term auto rentals 5.0% 10.50% 15.5%  14%
(Decrease)
Lease of a vehicle 5.0% 10.50% 15.5%  14%
(Decrease)
Child car seats and booster seats 5.0% No PST 5.0% 14%
Increase
Auto insurance No GST No PST No Tax No HST
No change
Labour charges to repair vehicle 5.0% 10.50% 15.5%  14%
(Decrease)
Oil change 5.0% 10.50% 15.5%  14%
(Decrease)
Tires 5.0% 10.50% 15.5%  14%
(Decrease)
Window repair 5.0% 10.50% 15.5%  14%
(Decrease)
Purchase of vehicle from dealer 5.0% 10.50% 15.5%  14%
(Decrease)
Boats 5.0% 10.50% 15.5%  14%
(Decrease)
Snowmobiles 5.0% 10.50% 15.5%  14%
(Decrease)
Recreational vehicles 5.0% 10.50% 15.5%  14%
(Decrease)
HEALTH PRODUCTS AND SERVICES
Audiologist services No GST No PST No Tax No HST
No change
Chiropractor services No GST No PST No Tax No HST
No change
Physiotherapist services No GST No PST No Tax No HST
No change
Pharmacist dispensing fees No GST No PST No Tax No HST
No change
Over-the-counter medications 5.0% 10.50% 15.5% 14%
(Decrease)
Prescription drugs No GST No PST No Tax No HST
No change
Some medical devices (includes walkers, hearing aids) No GST No PST No Tax No HST
No change
Prescription glasses/Contact lenses No GST No PST No Tax No HST
No change
Dental services No GST No PST No Tax No HST
No change
Dental hygiene products (e.g., toothpaste, toothbrushes) 5.0% 10.50% 15.5% 14%
(Decrease)
Feminine hygiene products 5.0% 10.50% 15.5% 14%
(Decrease)
Adult incontinence products No GST No PST No Tax No HST
No change
Children's Diapers - cloth 5.0% No PST 5.0% 14%
Increase
Children's Diapers - disposable 5.0% 10.50% 15.5% 14%
(Decrease)
Cosmetics 5.0% 10.50% 15.5%  14%
(Decrease)
Hair care products (e.g., shampoo, conditioner, styling products) 5.0% 10.50% 15.5%  14%
(Decrease)
Massage therapy services 5.0% No PST 5.0% 14%
Increase
Vitamins 5.0% 10.50% 15.5%  14%
(Decrease)
HOME PURCHASES
New homes 5.0% No PST 5.0% 14%
Increase
Used housing No GST No PST  No Tax No HST
No change
Real estate commissions 5.0% No PST  5.0%  14%
Increase
MEMBERSHIPS, ENTERTAINMENT AND SPORTS EQUIPMENT
Admissions to professional sporting events 5.0% 10.50% 15.5% 14%
(Decrease)
Movie tickets 5.0% 10.50%  15.5%  14%
(Decrease)
Music lessons No GST No PST  No Tax No HST
No change
Skis and snowboards 5.0% 10.50%  15.5%  14%
(Decrease)
Hockey equipment 5.0% 10.50%  15.5%  14%
(Decrease)
Golf clubs 5.0% 10.50%  15.5%  14%
(Decrease)
Green fees for golf 5.0% 10.50%  15.5%  14%
(Decrease)
Gym and athletic membership fees, excluding gold memberships 5.0% No PST  5.0%  14%
Increase
Golf memberships 5.0% 10.50%  15.5%  14%
(Decrease)
Ballet, karate, trampoline, hockey, soccer lessons, etc. 5.0% No PST  5.0%  14%
Increase
LEASES AND RENTALS
Condo fees No GST No PST  No Tax  No HST
No change
Residential rents No GST No PST  No Tax  No HST
No change
Hockey rink and hall rental fees 5.0% No PST  5.0%  14%
Increase
ELECTRONICS
TVs 5.0% 10.50%  15.5%  14%
(Decrease)
DVD and Blu-ray players and accessories 5.0% 10.50%  15.5%  14%
(Decrease)
MP3 players 5.0% 10.50%  15.5%  14%
(Decrease)
Cell phones, smart phones 5.0% 10.50%  15.5%  14%
(Decrease)
Cell phone service 5.0% 10.50%  15.5%  14%
(Decrease)
CDs, DVDs and Blu-ray discs 5.0% 10.50%  15.5%  14%
(Decrease)
Radios and stereos 5.0% 10.50%  15.5%  14%
(Decrease)
Computers and printers 5.0% 10.50%  15.5%  14%
(Decrease)
PROFESSIONAL AND PERSONAL SERVICES
Child care services No GST No PST  No Tax No HST
No change
Legal fees (Private) 5.0% 10.50%  15.5%  14%
(Decrease)
Coffins & urns purchased separately from a package of funeral services 5.0% No PST  5.0% 14%
Increase
Fitness trainer 5.0% No PST  5.0%  14%
Increase
Hair Stylist/Barber 5.0% No PST  5.0%  14%
Increase
Esthetician services (e.g., manicures, pedicures, facials) 5.0% No PST  5.0%  14%
Increase
Funeral services 5.0% No PST  5.0%  14%
Increase
Accounting and bookkeeping fees 5.0% 10.50%  15.5%  14%
(Decrease)
Architecture fees 5.0% 10.50%  15.5%  14%
(Decrease)
Engineering fees 5.0% 10.50%  15.5%  14%
(Decrease)
Most consulting fees 5.0% 10.50%  15.5%  14%
(Decrease)
Drafting and survey fees 5.0% No PST  5.0%  14%
Increase
BANKING AND INVESTMENTS
Mortgage interest costs No GST No PST  No Tax No HST
No change
Most financial services No GST No PST  No Tax No HST
No change
GOVERNMENT SERVICES
Driver's licence renewals and vehicle plate renewals (other than personalized licence plates) No GST No PST  No Tax No HST
No change
Hunting and fishing licences 5.0% No PST  5.0% 14%
Increase
Vital documents (e.g., health cards, birth certificates) No GST No PST  No Tax No HST
No change
CONSUMPTION TAXABLE ITEMS
Tobacco 5.0% No PST  5.0% 14%
See note 1
Gasoline/Diesel 5.0% No PST  5.0% 14%
See note 1
Alcoholic beverages 5.0% 10.50% 15.5% 14%
See note 1
1 Prices will be adjusted through changes to the Provincial consumption taxes on these goods in order to maintain our competitive position with neighbouring provinces.

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