Key takeaways
- Tax on phone service ranges from 5% (Alberta and the territories) to 15% (New Brunswick, Newfoundland and Labrador, P.E.I.)
- B.C., Manitoba, Saskatchewan and Quebec add provincial tax to GST
- Quebec’s QST (9.975%) is charged on the price before GST
- A $35 plan costs $39.55 a month in Ontario and $36.75 in Alberta
- Phone payments on a financing plan are not taxed again each month
How tax is added to your phone bill
Phone and internet services are taxable everywhere in Canada. Which taxes apply depends on your province:
| Province or territory | Tax on phone service | Total |
|---|---|---|
| Alberta, Northwest Territories, Nunavut, Yukon | 5% GST | 5% |
| Saskatchewan | 5% GST + 6% PST | 11% |
| British Columbia | 5% GST + 7% PST | 12% |
| Manitoba | 5% GST + 7% RST | 12% |
| Ontario | 13% HST | 13% |
| Nova Scotia | 14% HST | 14% |
| Quebec | 5% GST + 9.975% QST | 14.975% |
| New Brunswick, Newfoundland and Labrador, Prince Edward Island | 15% HST | 15% |
GST is the federal Goods and Services Tax. HST (Harmonized Sales Tax) combines GST and provincial tax in five provinces. PST, RST and QST are provincial taxes. Nova Scotia lowered its HST from 15% to 14% on April 1, 2025. Rates as of October 2026.
How the calculator counts
- Plan price minus any Autopay credit not already included, times the number of lines.
- Plus monthly add-ons.
- Tax is calculated on that service amount at your province’s rates. In Quebec, the 9.975% QST is calculated on the price before GST, as Revenu Québec requires.
- Phone financing payments are added without tax, because sales tax on a phone is usually charged on the full price when you get it.
- One-time costs are taxed once and added to the total.
Worked example
Daniel lives in British Columbia. He picks a $35 plan, one line, no add-ons.
- GST: $35 × 5% = $1.75
- PST: $35 × 7% = $2.45
- Monthly total: $39.20, or $470.40 a year
The same plan costs $36.75 in Alberta, $39.55 in Ontario and $40.24 in Quebec. A 30-day prepaid plan bills about 12.2 times a year, so add roughly 1.4% to the yearly figure for those plans.
Tips to lower your bill
- Choose the smallest plan that covers your real data use. Check last month’s usage in your phone settings.
- Use Autopay if it gives a discount or bonus data, but keep enough money in your account to avoid failed payments.
- Bring your own phone instead of financing a new one. Compare both in the prepaid vs postpaid calculator.
- Since June 12, 2026, activation fees are banned. See the activation fee ban.
Find a cheaper plan in cheapest phone plans, and add the total to your newcomer budget. For tax on other purchases, use the GST/HST calculator.
Lines you may see on your phone bill
- Monthly plan charge: the price of your rate plan.
- Autopay or digital credit: a discount for automatic payments or online billing.
- Device payment: your instalment if you are paying off a phone.
- Add-ons: roaming, long distance, extra data or features you chose.
- Usage charges: calls, texts or data outside your plan, such as long distance without an add-on.
- One-time charges: such as a SIM card or shipping. Activation fees are banned since June 12, 2026.
- Taxes: GST/HST and, in some provinces, PST, RST or QST.