Calculate Sales Tax Ontario

How to Calculate Sales Tax in Ontario

Sales tax in Ontario is calculated by applying the applicable tax rate to the price of the item. The total cost including tax is calculated as:

For example, if an item costs $100 and the tax rate is 13%, the total cost would be:

This formula is used by our Ontario sales tax calculator to provide accurate results.

Types of Sales Tax in Ontario

Ontario has several types of sales tax that apply to different products and services:

• HST (Harmonized Sales Tax): A combined federal and provincial sales tax that applies to most goods and services.
• PST (Provincial Sales Tax): A provincial sales tax that applies to specific goods and services.
• GST (Goods and Services Tax): A federal sales tax that applies to most goods and services.
• QST (Quebec Sales Tax): A provincial sales tax that applies to goods and services sold in Quebec.

The type of tax that applies depends on the product or service being purchased.

Current Sales Tax Rates in Ontario

The current sales tax rates in Ontario are as follows:

• HST: 13%
• PST: Varies by product (e.g., 8% for most goods, 9.975% for gasoline, 11.99% for alcohol)
• GST: 5%

Businesses must charge the correct tax rate based on the type of product or service being sold.

Examples of Calculating Ontario Sales Tax

Here are some examples of how to calculate Ontario sales tax:

Example 1: Calculating HST

If you purchase a $50 item with an HST rate of 13%, the total cost including tax is:

Example 2: Calculating PST

If you purchase a $100 item with a PST rate of 8%, the total cost including tax is:

Example 3: Calculating GST

If you purchase a $75 item with a GST rate of 5%, the total cost including tax is: