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Calculate Ontario Tax on Item

Reviewed by Calculator Editorial Team

Calculating the tax on an item in Ontario involves understanding the different tax rates and exemptions that apply. This guide explains how to determine the total tax owed on a purchase, including GST, PST, and HST, and provides a step-by-step calculation method.

How to Calculate Ontario Tax on an Item

The tax on an item in Ontario depends on whether the item is taxable and which tax rates apply. Here's the basic calculation process:

  1. Determine if the item is taxable (most consumer goods are taxable).
  2. Identify which tax applies: GST, PST, or HST.
  3. Calculate the tax amount using the appropriate rate.
  4. Add the tax to the item's price to get the total cost.

Tax Calculation Formula:

Total Cost = Item Price + (Item Price × Tax Rate)

For example, if you buy a $100 item with a 13% HST rate, the total cost would be $100 + ($100 × 0.13) = $113.

Types of Taxes in Ontario

Ontario has three main types of taxes that apply to items:

Tax Type Rate Description
GST (Goods and Services Tax) 5% Federal tax on most goods and services
PST (Provincial Sales Tax) 8% or 9% Provincial tax on most goods and services
HST (Harmonized Sales Tax) 13% or 15% Combined GST and PST for most taxable items

The HST rate is the sum of the GST and PST rates. For example, 5% GST + 8% PST = 13% HST.

Tax Exemptions and Deductions

Some items are exempt from tax in Ontario. Common exemptions include:

  • Prescription drugs
  • Basic groceries (some provinces have exemptions)
  • Books and newspapers
  • Medical and dental services
  • Certain clothing items

Note: Tax exemptions can change, so always check the latest government guidelines before making a purchase.

Worked Example

Let's calculate the tax on a $75 item in Ontario with a 13% HST rate.

Example Calculation

Item Price: $75

HST Rate: 13%

Tax Amount: $75 × 0.13 = $9.75

Total Cost: $75 + $9.75 = $84.75

This means you would pay $84.75 for the item, with $9.75 going to tax.

Frequently Asked Questions

What is the current HST rate in Ontario?
As of 2023, the standard HST rate in Ontario is 13%. Some items may have a higher rate of 15%.
Are there any items that are exempt from HST in Ontario?
Yes, certain items like prescription drugs, basic groceries, and medical services are exempt from HST.
How do I know if an item is taxable?
Most consumer goods are taxable. Look for the HST symbol on the price tag or check the product description.
Can I get a refund on HST paid?
Yes, you can claim a refund on HST paid if you're eligible, such as for medical expenses or certain business purchases.
Are there any sales tax holidays in Ontario?
Yes, Ontario has sales tax holidays for clothing, school supplies, and back-to-school items.