If you're wondering how the tax on tax thing works. Imagine you want to buy an item whose price is $1. The government then adds: $0.1 federal tax $0.1 provincial tax So now the price is $1.2. But then before you pay, they charge you 5% sales tax on $1.2. So they are charging you the tax on both the initial $1 price plus the $0.2 taxes they added. So you are paying a tax on tax. Now imagine you are spending a lot more than $1. How lovely.