Shopify Tax
Canadian sales tax, simplified
Selling in Canada? Shopify Tax makes compliance easy with automated solutions built into your store. Available on all Shopify plans—no setup fees.
Don’t have a Shopify store? Start one for free.
Automated sales tax calculations with precise category rates
Liability insights and provincial threshold alerts
No manual setup or overrides for exemptions and shipping tax
Detailed reports across Canada for easy filing prep
stress-free compliance
Shopify Tax automations protect your business and time
Understand your tax obligations and stay compliant without the complexity.
Collect GST, HST, PST, QST, & RST
Your checkout applies the correct taxes based on each buyer’s location.
Avoid common shipping tax errors
Automatically split shipping tax across carts with multiple items and rates.
Account for Canadian tax exemptions
Pricing adjusts for zero-rated goods and rebates on qualifying categories.
Stay up to date with new rules
When tax rules change, so do your rates—no upkeep required.
Having somewhere in Shopify that tells me where I'm liable, with the actual law to back it up, that takes the doubt out of the picture and allows me to invest time where it is more efficient than calling a tax agent or lawyers.
Shopify Tax
Don’t sweat Canadian sales tax
Don’t have a Shopify store? Start one for free.
Resources
Canadian tax guide for sellers
Find tax information and guidance for stores that sell in Canada.
Your tax liability insights
Learn how Shopify tracks your registration thresholds across all Canadian jurisdictions.
How tax exemptions work
Learn how Shopify Tax applies specific tax rules and exemptions based on product categories.
Frequently asked questions
Who can use Shopify Tax in Canada?
As of May 13, 2026, Shopify Tax is available for new stores on all plans. All existing stores prior to May 13, 2026, selling into Canada will be notified by email when Shopify Tax is available. Whether you sell physical goods, digital products, or services, Shopify Tax supports Canadian sales tax compliance across all provinces and territories.
How do I set up Shopify Tax?
As of May 13th, 2026 Shopify Tax is automatically enabled for new stores on Shopify to track your Canadian tax liability. Shopify Tax monitors your sales volume against specific federal and provincial thresholds that dictate when you must legally register and start collecting tax.
To start collecting Canadian sales tax where you’re liable, you must add the countries or provinces you wish to collect in, in your Shopify admin. For a full setup walkthrough, visit the Help Center.
Will my store automatically collect sales tax on all Canadian transactions?
No. To start collecting Canadian sales tax where you’re liable, you must register with the provincial or federal government website, then add your registration numbers in your Shopify admin. For a full setup walkthrough, visit the Help Center.
What taxes does Shopify Tax calculate in Canada?
Shopify Tax calculates GST (Goods and Services Tax at the federal level), HST (Harmonized Sales Tax in provinces like Ontario), PST (Provincial Sales Tax in British Columbia and Saskatchewan), RST (Retail Sales Tax in Manitoba), QST (Quebec Sales Tax in Quebec), and VPT (Vapour Products Tax). Rates are applied automatically based on your customer's location and the product categories you've assigned.
How are product and tax exemptions applied?
Shopify Tax uses an automation to determine which sales tax, shipping taxes, and exemptions to apply based on each product’s category. You don’t need to set up manual tax overrides.
It’s your responsibility to ensure that every product in your catalog is assigned to the correct category.
How much does Shopify Tax cost?
Shopify Tax is free on your first $100,000 CAD of lifetime sales. After $100,000 CAD, a 0.25% calculation fee (0.15% for Shopify Plus merchants) will be charged.
For example:
- You’re a merchant who sells a $30 CAD t-shirt. You’ll be charged a calculation fee of $0.08 CAD. (If you use Shopify Plus, you’ll be charged $0.05 CAD instead of $0.08 CAD)
The pricing information described above applies to stores that were created on or after May 13, 2026, and have less than $25,000,000 USD in sales per year. If your store was created before this date, then refer to Shopify Tax pricing for stores created before May 13, 2026. If your lifetime sales are above $25,000,000 USD, or the equivalent in your local currency, then contact your Customer Success Manager (CSM) for pricing.
Do I have to use Shopify Tax?
No. You can manage your taxes manually on Shopify and keep track of your liabilities and rate regulation changes on your own, or you can use a third-party tax service. You can’t use multiple services at the same time.
Most stores choose Shopify Tax because it offers the highest level of compliance with a minimal amount of upkeep. It’s built into your admin and there are no additional apps required.
Shopify Tax provides automatic product-specific rates and exemptions, and proportional shipping taxes. It tracks where you may be approaching a registration threshold, helping you stay liable across Canada. It also generates detailed reporting to aid in filing and remittance.
Learn more about your options by visiting the Help Center.
It's your responsibility to consult with local tax authorities or a tax professional to verify you're collecting, filing, and remitting taxes correctly.