Alberta Reverse GST Calculator 2026: Back Out 5% Tax
Pre-filled with Alberta's 5% statutory GST rate. Back out tax from gross receipts to isolate pre-tax costs and calculate CRA Input Tax Credit (ITC) claims.
Pre-filled with Alberta's GST rate
About Alberta Sales Tax
Alberta is unique among Canadian provinces as it does not charge a provincial sales tax (PST). Shoppers and businesses in Alberta only pay the federal Goods and Services Tax (GST) of 5%.
As a result, the combined tax rate is 5% in Calgary, Edmonton, Red Deer, and throughout the province. Reversing Alberta sales tax is as simple as dividing the total by 1.05.
Tax Rates in Major Alberta Cities
* Unlike in the US, Canadian provinces apply sales tax uniformly across all municipalities. City-level or county-level surcharges do not exist in Canada.
Input Tax Credit (ITC) Reconciliation for Alberta Businesses
Eligible Tax & CRA Filing Target
Eligible Tax: 5% Federal Goods and Services Tax (GST)
Filing Return: CRA Form GST34 (Line 106 / Line 108 Input Tax Credits)
Recovery Rate: 100% of the 5% GST paid is eligible for commercial ITC recovery
CRA Documentary Rules & Recovery Guidelines
- Because Alberta levies no provincial sales tax, 100% of the sales tax charged on business purchases is the 5% federal GST.
- Statutory Reverse Formula: Pre-Tax Base = Total Paid Ă· 1.05. Claimable GST ITC = Total Paid - Pre-Tax Base (or Total Paid Ă— 5/105).
- CRA Documentary Requirements: Retain receipts with the supplier’s 9-digit Business Number (BN) and transaction date to substantiate your ITC claims during CRA compliance audits.
- Small Supplier Exemption: Businesses with annual taxable worldwide sales below $30,000 are not required to register for GST, but registering voluntarily allows claiming ITCs on all startup and operating costs.
Worked Example for Alberta Receipt
For a $105.00 receipt in Alberta: Divide $105.00 by 1.05 = $100.00 net business expense. The remaining $5.00 is claimed as an Input Tax Credit on CRA Line 106.
When to Use This Calculator in Alberta
GST-Only bookkeeping
Alberta operations are straightforward. Bookkeepers easily isolate the 5% GST component to claim Input Tax Credits from the federal government.
Frequently Asked Questions: Alberta Taxes
How do I remove GST in Alberta?+
To find the price before GST in Alberta, divide your final price by 1.05. For example, a receipt total of $105.00 divided by 1.05 is $100.00. The GST component is exactly $5.00.