Here's how much the GST/HST tax break could save you, based on where​ you live in Canada

GST, HST & PST: What's the difference?

The GST, or goods and services tax, is a 5% federal tax applied to most goods and services — hence the name — everywhere across Canada.

In some provinces, the GST is combined with the provincial sales tax to form a harmonized sales tax (HST). The HST rate varies in different provinces based on the portion the province charges.

Other provinces, however, charge their provincial sales tax (PST) separately — or not at all — rather than combining it with the GST.

The catch is that the upcoming tax break doesn't apply to PST, so shoppers in provinces with PST will still pay the provincial portion of the sales tax during the tax holiday.

How much could you save?

The amount you save depends on your province's tax rates and whether or not it uses HST.

The feds noted in their initial tax break announcement that a family spending $2,000 on eligible items over the two-month tax holiday period would save at least $100 on the federal portion of tax at the 5% GST rate — but residents of provinces that use HST could actually save up to triple that amount.

Here's a closer look at how that $2,000 would be taxed in each province and territory:

• Alberta, Northwest Territories, Nunavut & Yukon: 5% GST / 0% PST
  • Typical post-tax total: $2,100
  • With tax break: $2,000
  • Tax savings: $100
• Saskatchewan: 5% GST / 6% PST
  • Typical post-tax total: $2,220
  • With tax break: $2,120
  • Tax savings: $100
• B.C. & Manitoba: 5% GST / 7% PST
  • Typical post-tax total: $2,240
  • With tax break: $2,140
  • Tax savings: $100
• Quebec: 5% GST / 9.975% PST
  • Typical post-tax total: $2,299.50
  • With tax break: $2,199.50
  • Tax savings: $100
• Ontario: 13% HST
  • Typical post-tax total: $2,260
  • With tax break: $2,000
  • Tax savings: $260
• New Brunswick, Newfoundland and Labrador, Nova Scotia & P.E.I.: 15% HST
  • Typical post-tax total: $2,300
  • With tax break: $2,000
  • Tax savings: $300

As you can see, the savings are biggest in HST provinces, where residents get to save the provincial portion of the tax as well. If you're in Saskatchewan, B.C., Manitoba or Quebec, you won't get a complete tax break as you'll still have to pay sales tax to your province.

What is included in the tax break?

The GST/HST tax break applies to items you likely buy regularly: groceries (including things like packaged snacks and prepared foods that usually carry tax), restaurant meals, toys, books, kids' clothing, diapers and even booze under 7% alcohol.

For many families, these savings could add up during the busiest shopping months of the year.