Calgary is often seen as an affordable alternative to major U.S. cities, and one key reason is its lower sales tax. While many American cities impose combined state + county + city sales taxes that can exceed 9–10%, Calgary stands out with a simple 5% GST and no provincial sales tax (PST) in Alberta.
In this article, we compare US cities with higher sales tax than Calgary, explain how the tax systems differ, and show why shopping, dining, and travel expenses are often cheaper in Calgary than in much of the United States.
Calgary Sales Tax Explained
Before comparing cities, it’s important to understand how sales tax works in Calgary.
Calgary Sales Tax Rate
- GST (Goods and Services Tax): 5%
- Provincial Sales Tax (PST): 0%
- Total sales tax in Calgary: 5%
This rate applies across Alberta, making Calgary one of the lowest-taxed major cities in North America.
👉 In contrast, most U.S. cities apply multiple layers of sales tax.
How US Sales Tax Works
Unlike Canada’s federal GST system, U.S. sales tax is fragmented.
In the United States:
- Federal sales tax: none
- State sales tax: 0%–7.25%
- County and city taxes: 0%–5%+
- Total combined rate often exceeds 9%
This means the final tax depends on exact location, not just the state.
Major US Cities with Higher Sales Tax Than Calgary
Below are well-known U.S. cities where the total sales tax is significantly higher than Calgary’s 5%.
Los Angeles, California
- State tax: 7.25%
- Local taxes: ~2.25%
- Total: ≈ 9.5%
Los Angeles has one of the highest sales taxes among major U.S. cities, nearly double Calgary’s rate.
New York City, New York
- State tax: 4%
- City tax: 4.5%
- Metropolitan surcharge: 0.375%
- Total: ≈ 8.875%
Shopping in NYC means paying almost 9% sales tax, making everyday purchases noticeably more expensive than in Calgary.
Chicago, Illinois
- State tax: 6.25%
- City + county taxes: ~4%
- Total: ≈ 10.25%
Chicago consistently ranks among the highest-taxed cities in the U.S. for consumer goods.
Seattle, Washington
- State tax: 6.5%
- Local taxes: ~3.6%
- Total: ≈ 10.1%
Even without a state income tax, Washington compensates with very high sales taxes, especially in Seattle.
San Francisco, California
- State tax: 7.25%
- Local taxes: ~1.5%
- Total: ≈ 8.75%
Combined with already high prices, sales tax adds a significant cost to living and tourism in San Francisco.
Phoenix, Arizona
- State tax: 5.6%
- City tax: ~2.3%
- Total: ≈ 7.9%
Still well above Calgary’s rate, especially noticeable for large purchases.
Comparison Table: Calgary vs US Cities
| City | Total Sales Tax |
|---|---|
| Calgary, AB | 5% |
| New York City, NY | ~8.875% |
| Los Angeles, CA | ~9.5% |
| San Francisco, CA | ~8.75% |
| Seattle, WA | ~10.1% |
| Chicago, IL | ~10.25% |
| Phoenix, AZ | ~7.9% |
Why Calgary Is Cheaper for Shoppers
1. No Provincial Sales Tax
Alberta is one of the only provinces in Canada without PST, giving Calgary a massive advantage over both Canadian and U.S. cities.
2. Predictable Pricing
In Calgary:
- Shelf price ≈ final price
- No hidden city or county add-ons
In the U.S.:
- Tax varies by ZIP code
- Final price often higher than expected
Tourism Impact: Why US Visitors Love Calgary
For American tourists, Calgary often feels cheaper because:
- Sales tax is 3–5% lower than at home
- No surprises at checkout
- Lower taxes on hotels, attractions, and dining
This makes Calgary especially attractive for:
- Shopping trips
- Festivals (Stampede)
- Family travel
- Long stays
FAQ: Sales Tax Comparison
Is Calgary’s sales tax lower than most US cities?
Yes. Most large U.S. cities have sales tax between 8% and 10%, compared to Calgary’s 5%.
Does Alberta have hidden taxes like US cities?
No. Alberta only applies GST, with no city or provincial sales tax.
Are groceries taxed in Calgary?
Basic groceries are zero-rated under GST, making them tax-free.
Do US tourists get tax refunds in Calgary?
No, Canada does not offer GST refunds for tourists anymore—but even without refunds, Calgary remains cheaper.
Which US cities have sales tax close to Calgary?
Only cities in states like Oregon, Montana, or Delaware (0% sales tax) are lower—but they are exceptions, not the rule.
Final Verdict: Calgary vs US Cities on Sales Tax
When comparing US cities with higher sales tax than Calgary, the conclusion is clear:
Calgary is significantly cheaper for everyday spending than most major American cities.
With a flat 5% GST, no provincial or city tax, and transparent pricing, Calgary remains one of the most consumer-friendly cities in North America—especially for U.S. visitors used to paying nearly double in sales tax back home.
