Province GST rate ( % ) HST rate ( % ) PST rate ( % ) Alberta 5 - - British Columbia 5 - 7 Manitoba 5 - 7 New Brunswick - 13 - Newfoundland and Labrador - 13 - Nova Scotia - 15 - Ontario - 13 - Prince Edward Island - 14 - Quebec 5 - 9. 975 Saskatchewan 5 - 5 How much more will a consumer pay for an item listed at $1000 (pretax) in Prince Edward Island than in Manitoba?


Let's calculate the total taxes paid in both Prince Edward Island (PEI) and Manitoba for an item priced at $1000 before tax.

### Step 1: Calculate the total cost in **Prince Edward Island**.

PEI has an HST (Harmonized Sales Tax) rate of 14%. This means the consumer will pay:

\[
\text{Tax in PEI} = 1000 \times \frac{14}{100} = 1000 \times 0.14 = 140
\]

Total cost in PEI:

\[
1000 + 140 = 1140
\]

### Step 2: Calculate the total cost in **Manitoba**.

Manitoba has a GST (Goods and Services Tax) rate of 5% and a PST (Provincial Sales Tax) rate of 7%. The total tax is the sum of these two:

\[
\text{GST in Manitoba} = 1000 \times \frac{5}{100} = 1000 \times 0.05 = 50
\]
\[
\text{PST in Manitoba} = 1000 \times \frac{7}{100} = 1000 \times 0.07 = 70
\]

Total tax in Manitoba:

\[
50 + 70 = 120
\]

Total cost in Manitoba:

\[
1000 + 120 = 1120
\]

### Step 3: Calculate the difference in cost between PEI and Manitoba.

\[
\text{Difference} = 1140 - 1120 = 20
\]

### Final Answer:
The consumer will pay **$20 more** for the item in Prince Edward Island than in Manitoba.

Would you like further clarification or have any questions? Here are some related questions:

1. How would the difference change if the price of the item was higher?
2. What is the purpose of HST, and why do some provinces use it instead of separate GST and PST?
3. How does the PST in Quebec compare to Manitoba?
4. How would the result differ if we looked at a province like Alberta with no PST?
5. How does the frequency of tax changes affect consumers across different provinces?

**Tip**: When comparing taxes between provinces, always be mindful of combined tax rates like HST versus separate GST and PST rates.

How much more will a consumer pay for an item listed at $1000 (pretax) in Prince Edward Island than in Manitoba?

Learn how to calculate the difference in taxes for an item priced at $1000 between Prince Edward Island and Manitoba. This problem involves percentage-based tax calculations, covering key concepts such as GST, PST, and HST. Ideal for students in Grades 5-7.

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