Is Shipping Taxable in Canada? Rules by Province
Shipping follows the goods — if the goods are taxable, the shipping usually is too.
The short answer
Yes — shipping on taxable goods is generally taxable
In most Canadian provinces, delivery and shipping charges on taxable goods are themselves taxable — at the same rate as the goods. If you ship a $200 item subject to 13% Ontario HST, the $15 shipping charge also attracts 13% HST. If the goods are exempt, the shipping is generally exempt too.
The main exception is Saskatchewan, where shipping can be exempt from PST if it is shown as a separate line item on the invoice, the charge is reasonable, and the delivery originates within Saskatchewan. Shipping from outside Saskatchewan is treated as part of the “laid down cost” of the goods and is taxable.
For mixed orders — where some goods are taxable and some are exempt — the shipping charge is generally apportioned between the taxable and exempt portions. BC’s PST rules explicitly require this proportional treatment.
Province by province
Shipping tax rules across Canada
The general principle under the CRA’s GST/HST rules is that shipping charges are part of the consideration for the supply — so they take on the tax character of the goods being shipped. A supply of taxable goods plus taxable shipping = GST/HST on both. A supply of zero-rated exports plus shipping = 0% on both.
Provincial taxes (PST, RST, QST) follow their own rules per province. Most mirror the GST/HST approach — shipping follows the goods. Saskatchewan is the primary outlier.
Shipping tax rules by province
| Province | GST / HST on shipping | Provincial tax on shipping | Notes |
|---|---|---|---|
| Ontario | 13% HST on shipping | — | Shipping on taxable goods is subject to HST. Shipping on exempt goods is exempt. |
| British Columbia | 5% GST on shipping | 7% PST on shipping | Shipping charges are taxable if the goods being delivered are taxable. For mixed orders, PST is proportional to the taxable goods portion. |
| Saskatchewan | 5% GST on shipping | Exempt if shown separately* | Exempt if: (1) shown as a separate line item, (2) the charge is reasonable, AND (3) delivery originates within SK. Taxable if delivery originates outside SK ("laid down cost" rule). |
| Manitoba | 5% GST on shipping | 7% RST on shipping | Shipping on taxable goods is subject to RST. |
| Quebec | 5% GST on shipping | 9.975% QST on shipping | Shipping and delivery charges on taxable goods are subject to QST. Calculated on the base shipping charge before GST. |
| Alberta | 5% GST on shipping | — | No provincial tax. GST only on shipping for taxable goods. |
| New Brunswick | 15% HST on shipping | — | Shipping on taxable goods is subject to HST. |
| Nova Scotia | 14% HST on shipping | — | Shipping on taxable goods is subject to HST. Rate changed from 15% April 1, 2025. |
| Newfoundland & Labrador | 15% HST on shipping | — | Shipping on taxable goods is subject to HST. |
| Prince Edward Island | 15% HST on shipping | — | Shipping on taxable goods is subject to HST. |
| YT / NT / NU | 5% GST on shipping | — | No territorial tax. GST only. |
Saskatchewan: the three-condition exemption
SK PST exempts shipping charges only when all three of the following conditions are met:
- The shipping charge is shown as a separate line item on the invoice (not bundled into the product price)
- The charge is reasonable (i.e., reflects the actual cost of delivery)
- The delivery originates within Saskatchewan
If delivery originates outside Saskatchewan — for example, you ship from a warehouse in Ontario to an SK customer — the shipping is considered part of the “laid down cost” of the goods and SK PST applies to it.
Mixed orders: taxable and exempt goods in the same shipment
If one order contains both taxable goods (e.g., electronics) and exempt goods (e.g., basic groceries), you need to apportion the shipping charge between the two categories. Tax applies only to the portion of shipping attributable to the taxable goods.
Example: Order contains $80 of electronics (taxable) and $20 of groceries (zero-rated). Total shipping: $10. Taxable portion of shipping = $10 × ($80 ÷ $100) = $8.00. Exempt portion = $2.00. GST/HST applies to the $8.00, not the full $10.00.
Full invoice examples — goods plus shipping
Ontario customer — $150 goods + $12 shipping
HST applies to both goods and shipping. One combined tax calculation.
BC customer — $150 goods + $12 shipping (both taxable)
BC PST applies to shipping because the goods are taxable. Two separate remittances.
SK customer — $150 goods + $12 shipping (within SK, shown separately)
SK PST exempts shipping when shown separately and delivery originates within SK. PST applies to goods only.
Alberta customer — $150 goods + $12 shipping
No provincial tax. GST applies to goods and shipping.
Free tool
Calculate your exact rate
Use our free Canadian sales tax calculator to get the answer for your specific situation — seller province, buyer province, and product type — with government sources cited.
Use the free calculatorWhen shipping is zero-rated or exempt
Shipping follows the goods — so if the goods are zero-rated or exempt, the shipping charge takes on the same treatment:
- Shipping basic groceries (zero-rated) → shipping is also zero-rated (0% GST)
- Shipping goods to a customer outside Canada (export, zero-rated) → shipping is also zero-rated
- Shipping exempt goods (e.g., most medical devices sold by a healthcare provider) → shipping is also exempt
What most people get wrong
Common shipping tax mistakes
Never charging tax on shipping — "it's just a pass-through"
The most common assumption. Shipping charges in Canada are generally part of the taxable consideration for the supply — they're not a neutral pass-through. If the goods are taxable and you charge $20 for shipping to an Ontario customer, that $20 is subject to 13% HST ($2.60). Over a year of orders, untaxed shipping adds up to real unremitted tax.
Applying the SK exemption when delivery originates outside Saskatchewan
The SK PST shipping exemption only applies when delivery starts within Saskatchewan. If you ship from an Ontario warehouse or a BC fulfillment centre to an SK customer, the shipping is treated as part of the "laid down cost" of the goods and SK PST applies. Many sellers incorrectly assume that showing shipping separately on the invoice is sufficient — the origin of delivery also matters.
Not apportioning shipping on mixed orders
If one order contains both taxable and exempt items, you can't simply tax the full shipping charge. You need to apportion it. A $10 shipping charge on an order that is 80% taxable goods should have GST/PST applied to $8.00, not $10.00. Getting this wrong means you're either overcharging customers on the exempt portion or under-remitting on the taxable portion.
Bundling shipping into the product price to avoid the question
Some sellers include shipping in their listed price rather than showing it separately, thinking this simplifies the tax treatment. It doesn't help — the total consideration (including bundled shipping) is still taxable at the same rate if the goods are taxable. And in Saskatchewan, bundling actually removes the ability to use the separate-line exemption, making the previously potentially exempt shipping portion taxable.
Treating shipping as taxable when the goods are zero-rated
If you ship zero-rated goods (basic groceries, certain medical devices, exports), the shipping charge is also zero-rated. Charging GST/HST on shipping for zero-rated goods is incorrect. This applies to any scenario where the underlying supply is zero-rated — the shipping follows the same treatment.
Summary
Key takeaways
Shipping on taxable goods is taxable in almost every Canadian province — at the same rate as the goods.
Shipping follows the goods: taxable goods → taxable shipping. Zero-rated goods → zero-rated shipping. Exempt goods → exempt shipping.
Saskatchewan is the main exception: PST on shipping is exempt if (1) shown as a separate line, (2) the charge is reasonable, and (3) delivery originates within SK.
If delivery to an SK customer originates outside SK, the shipping is taxable under SK PST regardless of how it is shown on the invoice.
For mixed orders (taxable + exempt goods), apportion the shipping charge and apply tax only to the taxable portion.
Bundling shipping into the product price doesn't change the tax treatment — the full consideration is taxable if the goods are taxable.
For BC PST, shipping on taxable goods is taxable; on mixed orders PST is proportional to the taxable goods portion.
For QST in Quebec, shipping on taxable goods is subject to QST at 9.975%, calculated on the base shipping charge before GST.
Free tool
Calculate your exact rate
Use our free Canadian sales tax calculator to get the answer for your specific situation — seller province, buyer province, and product type — with government sources cited.
Use the free calculatorGovernment sources
Sources
Shipping tax rules are set by both the CRA and each provincial authority. Always verify current rules directly — particularly for Saskatchewan, where the exemption conditions are specific and easily misapplied.
- GST/HST — which rate to charge
Canada Revenue Agency
- Place of supply — practical guide
Canada Revenue Agency
- Type of supply — taxable, zero-rated, and exempt
Canada Revenue Agency
- Provincial Sales Tax (BC PST) — main page
BC Ministry of Finance
- Provincial Sales Tax (SK PST) — shipping rules
Saskatchewan Finance
- Retail Sales Tax (MB RST)
Manitoba Finance
- QST — basic rules for applying GST/HST and QST
Revenu Québec
Keep reading
Related guides
Place of Supply Rules in Canada: How to Determine Which Tax Applies
The full legal framework — how the CRA determines which province's rate applies to every type of transaction, including delivery.
Do I Charge PST When Selling to British Columbia?
BC PST applies to taxable goods and their shipping. Here's the full scope of what's taxable and who must register.
Canadian Invoice Tax Lines: What You're Required to Show
How to show shipping tax correctly on an invoice — HST provinces want one line, PST provinces want two.
Disclaimer
TaxMapCA provides tax information, not tax advice. This article is for general informational purposes only and does not constitute legal or accounting advice. Shipping tax rules vary by province and can depend on specific invoice presentation, delivery origin, and the nature of the goods — always verify your specific situation against the government sources linked above. TaxMapCA is not affiliated with or endorsed by the Canada Revenue Agency, the BC Ministry of Finance, Saskatchewan Finance, Manitoba Finance, Revenu Québec, or any other tax authority. For complex situations, consult a qualified CPA or tax professional.