Calculating Sales Tax Ontario

Calculating sales tax in Ontario requires understanding the province's tax rates and exemptions. This guide explains how to calculate sales tax in Ontario, including the current tax rates, exemptions, and how to use our calculator for accurate results.

How to Calculate Sales Tax in Ontario

Calculating sales tax in Ontario involves applying the province's tax rates to the price of goods or services. The basic sales tax rate in Ontario is 8%, but there are additional taxes for specific items.

Sales Tax Formula

Sales Tax = (Price × Tax Rate) + Additional Taxes (if applicable)

Total Price = Price + Sales Tax

To calculate sales tax in Ontario:

Determine the price of the item before tax.
Apply the applicable tax rate (8% for most goods and services).
Add any additional taxes for specific items (e.g., HST for alcohol and tobacco).
Calculate the total price including tax.

Note: The Ontario sales tax rate is 8% for most goods and services. However, some items have additional taxes, such as the Harmonized Sales Tax (HST) for alcohol and tobacco.

Ontario Sales Tax Rates

The standard sales tax rate in Ontario is 8%. This rate applies to most goods and services. However, there are additional taxes for specific items:

Tax Type	Rate	Applies To
Ontario Sales Tax (OST)	8%	Most goods and services
Harmonized Sales Tax (HST)	13%	Alcohol and tobacco
Provincial Sales Tax (PST)	8%	Certain prescription drugs

Understanding these tax rates is essential for accurate calculations. The Ontario Sales Tax Act outlines the specific rates and exemptions.

Sales Tax Exemptions in Ontario

Certain goods and services are exempt from sales tax in Ontario. These exemptions include:

Prescription drugs
Food and groceries
Medical supplies and equipment
Books and newspapers
Clothing and household items under $5

Note: Exemptions may vary, and some items may be subject to tax under certain conditions. Always check the Ontario Sales Tax Act for the most current information.

Sales Tax Calculator for Ontario

Use our calculator to quickly determine the sales tax for items in Ontario. Simply enter the price and select the applicable tax rate.

Assumptions: The calculator uses the standard Ontario sales tax rate of 8%. Additional taxes for specific items are not included in this basic calculation.

Example Calculation

If an item costs $100, the sales tax would be:

$100 × 8% = $8

Total price = $100 + $8 = $108

FAQ

What is the standard sales tax rate in Ontario?: The standard sales tax rate in Ontario is 8% for most goods and services.
Are there additional taxes for specific items?: Yes, some items have additional taxes, such as the Harmonized Sales Tax (HST) for alcohol and tobacco.
What items are exempt from sales tax in Ontario?: Exemptions include prescription drugs, food and groceries, medical supplies, books, newspapers, and clothing under $5.
How do I calculate sales tax in Ontario?: Multiply the price of the item by the applicable tax rate and add the tax to the original price.
Where can I find more information about Ontario sales tax?: Refer to the Ontario Sales Tax Act or consult the Canada Revenue Agency website for detailed information.