1. What is Alberta Sales Tax?

Alberta is one of the few provinces in Canada that only charges the federal Goods and Services Tax (GST) at 5%, with no provincial sales tax (PST). This makes Alberta's overall sales tax rate one of the lowest in Canada.

2. How Does the Calculator Work?

The calculator uses the Alberta GST formula:

Where:

• \( Price \) — The original price before tax (in dollars)
• \( 0.05 \) — The GST rate (5%)
• \( Tax \) — The calculated sales tax amount

Explanation: The total amount payable is calculated by adding the tax to the original price: \( Total = Price + Tax \)

3. Importance of Sales Tax Calculation

Details: Accurate sales tax calculation is essential for budgeting, financial planning, business accounting, and ensuring compliance with Canadian tax laws. Understanding the tax component helps consumers make informed purchasing decisions.

4. Using the Calculator

Tips: Enter the price in Canadian dollars before tax. The price must be a positive number. The calculator will automatically compute the 5% GST and display both the tax amount and total payable.

5. Frequently Asked Questions (FAQ)

Q1: What is the current GST rate in Alberta?
A: The GST rate in Alberta is 5%, which is the standard federal rate applied across Canada.

Q2: Are there any exemptions from GST in Alberta?
A: Yes, certain items are GST-exempt including basic groceries, prescription drugs, medical devices, and some agricultural and fishing products.

Q3: How does Alberta's tax compare to other provinces?
A: Alberta has the lowest sales tax rate in Canada at 5% GST only. Other provinces typically have combined HST rates ranging from 13% to 15%.

Q4: Do businesses need to register for GST?
A: Businesses with annual worldwide taxable revenues over $30,000 must register for, collect, and remit GST.

Q5: Is GST applied to services as well as goods?
A: Yes, GST applies to most goods and services sold in Alberta, with some specific exemptions and zero-rated supplies.