Sales tax on restaurant meals in Alberta, Saskatchewan, Manitoba and the Atlantic provinces (2026)

The price on your menu is the same in Calgary and Halifax, but the tax your guest pays on top is not. That matters if you operate in more than one province, buy a business in a new one or are thinking about where to open next. It also matters if you set up a point-of-sale system, because the wrong tax line is a filing problem, not just a receipt problem.

This is general information, not tax advice. The rates below come from secondary sources and they change with budgets. Confirm each with the provincial finance department and the Canada Revenue Agency before you file.

What tax applies on a restaurant meal in each province?

Province	Reported tax on a restaurant meal	Note
Alberta	5% GST only	No provincial sales tax
Saskatchewan	5% GST plus 6% PST	PST applies to restaurant meals
Manitoba	5% GST plus 7% RST	Applies to restaurant meals
Nova Scotia	14% HST	Reduced from 15% on April 1, 2025, according to reports
New Brunswick	15% HST	Combined federal and provincial
Newfoundland and Labrador	15% HST	Combined federal and provincial
Prince Edward Island	15% HST	Combined federal and provincial

Does Manitoba's July 2026 food exemption affect restaurants?

Reports say no. Manitoba's exemption on prepared food sold in grocery stores, in force since July 1, 2026, does not cover restaurants, bakeries, coffee shops or food trucks, including their online orders. If you serve food in Manitoba, you still collect the retail sales tax. An industry group criticized the 2026 budget for not extending relief to restaurant meals.

What is the difference between GST, HST and PST for your accounts?

GST is the federal tax. HST combines the federal and provincial parts into one rate, and the CRA administers it. PST and RST are provincial taxes administered by the province, so a business in Saskatchewan or Manitoba registers and files with the province in addition to the CRA. In Alberta there is nothing to file with the province.

Do you need to register?

If your taxable sales pass the federal small-supplier threshold, you must register for the GST/HST. Provincial registration for PST or RST is separate and has its own rules. A new business should ask its accountant to set up the right accounts on day one, and to confirm whether any of its sales are zero-rated or exempt.

How do you set up your till correctly?

1. Choose the province of the location. The tax follows where the sale happens, not where your head office is.
2. Set the tax lines. Use a combined HST line in the Atlantic provinces, and separate GST and PST or RST lines in Saskatchewan and Manitoba.
3. Test a bill. Ring a meal with food only, then food with alcohol, then a takeout order.
4. Check the rules for tips and service charges. A mandatory service charge is usually taxed in a way that a voluntary tip is not.
5. Review after each provincial budget. Rates and exemptions change.

What about delivery and takeout?

Hot, prepared food is generally taxable. How a delivery fee or a packaging charge is taxed can differ, so ask your accountant. Online orders placed through a delivery company are usually taxed at the rate for the delivery address, but confirm how your platform handles it.

What should guests see on the bill?

Canadian menus show prices before tax. The bill should list the subtotal and each tax line, so a guest can see what they pay. Tip percentages on card machines should be based on the pre-tax amount where a province requires it, as in Quebec, and it is good practice elsewhere.

Does a higher tax rate change how you price?

Not directly, because the guest pays the tax. But a higher total can affect how guests feel about the bill. Where taxes are high, a clear menu and a good meal matter more.

Are you opening a second location in another province?

A new province means new tax lines, new rules and a new set of guests who have never heard of you. Mosey is a food discovery app where diners search by dish and rate what they ate, which helps a good business get found in a city where it has no history. Nobody can pay to outrank you there, because Mosey Gold is earned from ratings alone.

More guides for your business:

• Do you need a loyalty program for your Canadian restaurant? How to decide and set one up
• How to fill quiet restaurant nights in January and February in Canada
• How to get more customers for a Charlottetown restaurant beyond the summer rush

More in the Canadian guides for food businesses.