Calculate Hst Ontario

Ontario's Harmonized Sales Tax (HST) is a consumption tax applied to most goods and services sold in the province. This calculator helps you determine the HST amount on your purchases and understand how it affects your total cost.

What is HST in Ontario?

The Harmonized Sales Tax (HST) is a single sales tax that combines the previous provincial sales tax (PST) and goods and services tax (GST). It was introduced in Ontario in 2010 to simplify the tax system and provide a more transparent pricing structure for consumers.

HST is applied to most goods and services sold in Ontario, with some exceptions. The tax rate varies depending on the type of product or service being purchased.

How to Calculate HST in Ontario

Calculating HST is straightforward. You multiply the price of the item by the applicable HST rate to determine the tax amount. Then, you add this amount to the original price to get the total cost.

HST Amount = Price × HST Rate
Total Cost = Price + HST Amount

For example, if you buy a $100 item with an HST rate of 13%, the calculation would be:

HST Amount = $100 × 0.13 = $13
Total Cost = $100 + $13 = $113

Current HST Rates in Ontario

As of 2023, the standard HST rate in Ontario is 13%. However, there are different rates for specific types of goods and services:

Standard Rate (13%): Applies to most goods and services
Zero-Rated Goods (0%): Includes basic foodstuffs, prescription drugs, and medical supplies
Exempt Goods (0%): Includes certain goods like clothing, books, and newspapers

It's important to note that some services, such as professional services, are subject to the standard HST rate.

How HST Works in Ontario

When you make a purchase in Ontario, the seller adds the HST to the price before you pay. The tax is then collected by the government and remitted to the federal and provincial governments.

HST is different from the GST/HST system in other provinces, where the tax is collected by the federal government and remitted to the provinces. In Ontario, the tax is collected and remitted by the province.

Businesses in Ontario must charge HST on taxable goods and services and remit the tax to the government. They are also responsible for collecting and remitting the tax on behalf of other businesses that supply them.

HST Exemptions in Ontario

Not all goods and services are subject to HST in Ontario. The following items are exempt from HST:

Basic foodstuffs (groceries, prepared meals, etc.)
Prescription drugs and medical supplies
Clothing and footwear
Books, newspapers, and periodicals
Certain services like financial services, insurance, and professional services

It's important to check the current list of exemptions, as they can change. Businesses must ensure they are charging the correct amount of HST on taxable goods and services.

FAQ

What is the difference between HST and GST?

HST combines the provincial sales tax (PST) and the goods and services tax (GST) into a single tax. In Ontario, HST is applied to most goods and services, while GST is applied to goods and services sold across Canada.

How do I know if a product is subject to HST?

Most products are subject to HST, but there are exemptions for basic foodstuffs, prescription drugs, clothing, books, and some services. Check the current list of exemptions for the most accurate information.

Can I claim HST back on my purchases?

No, HST is a consumption tax that is paid by the consumer at the time of purchase. It is not refundable like some other taxes.

How is HST different from the GST/HST system in other provinces?

In Ontario, HST is collected and remitted by the province. In other provinces, the GST is collected by the federal government and remitted to the provinces. The HST rate in Ontario is also higher than the GST rate in other provinces.