Back Out Tax Calculator Ontario

Ontario's back out tax system allows taxpayers to claim a refund of the provincial sales tax (PST) they paid on certain purchases. This calculator helps you determine how much you can claim back.

How to Use This Calculator

To calculate your Ontario back out tax refund:

Enter the total amount you spent on eligible purchases
Select the applicable tax rate (usually 8% for most items)
Click "Calculate" to see your estimated refund

The calculator will show you the amount of PST you paid and the estimated refund you qualify for.

Formula Explained

The back out tax calculation is straightforward. The formula is:

Back Out Tax Refund = (Total Eligible Purchases × Tax Rate) × Refund Percentage

Where:

Total Eligible Purchases - The amount you spent on qualifying items
Tax Rate - The provincial sales tax rate (usually 8%)
Refund Percentage - The percentage of the tax you can claim back (varies by program)

Note: The actual refund amount may vary based on your specific circumstances and the Ontario government's current rules.

Worked Example

Let's say you made eligible purchases totaling $1,000 and the tax rate is 8%.

Calculate the tax paid: $1,000 × 0.08 = $80
Apply the refund percentage (assuming 100% refund): $80 × 1.00 = $80

Your estimated back out tax refund would be $80.

Frequently Asked Questions

What items qualify for the back out tax refund?

Most new residential construction projects qualify, including homes, condominiums, and other residential buildings.

How long do I have to claim my back out tax refund?

You typically have 60 days from the date of purchase to claim your refund.

Is there a maximum amount I can claim back?

There is no maximum amount for the back out tax refund, but you must have documentation to support your claim.