Cal11 calculator

Gst and Pst Ontario Calculator

Reviewed by Calculator Editorial Team

Ontario consumers pay both the Goods and Services Tax (GST) and the Provincial Sales Tax (PST) on most purchases. This calculator helps you determine the total tax amount when you know the pre-tax price of an item.

How to Calculate GST and PST in Ontario

The total tax you pay in Ontario is the sum of the GST and PST applied to the pre-tax price of an item. The calculation is straightforward:

Total Tax = (Pre-tax Price × GST Rate) + (Pre-tax Price × PST Rate)

Where:

  • GST Rate = 5%
  • PST Rate = 8% (as of 2023)

For example, if an item costs $100 before tax:

  • GST = $100 × 5% = $5
  • PST = $100 × 8% = $8
  • Total Tax = $5 + $8 = $13
  • Total Price = $100 + $13 = $113

Some items are exempt from PST, such as basic groceries, prescription drugs, and medical supplies. The GST applies to all taxable goods and services in Ontario.

Current Ontario Tax Rates

As of 2023, the standard tax rates in Ontario are:

  • Goods and Services Tax (GST): 5%
  • Provincial Sales Tax (PST): 8%

Note: Some items are exempt from PST. Always check the Ontario government website for the most current tax rates and exemptions.

The total combined rate for most taxable items is 13%. However, since the taxes are applied sequentially, the calculation method shown above is more accurate than simply multiplying by 13%.

How to Use This Calculator

  1. Enter the pre-tax price of your item in the calculator.
  2. Select whether the item is taxable (subject to PST) or exempt (not subject to PST).
  3. Click "Calculate" to see the GST, PST (if applicable), and total tax amounts.
  4. Review the total price including tax.

The calculator will show you:

  • The GST amount (always 5% of the pre-tax price)
  • The PST amount (8% of the pre-tax price, if the item is taxable)
  • The total tax amount
  • The total price including tax

Examples and Scenarios

Here are some examples of how the GST and PST calculation works in Ontario:

Pre-tax Price Item Type GST PST Total Tax Total Price
$50.00 Taxable $2.50 $4.00 $6.50 $56.50
$100.00 Taxable $5.00 $8.00 $13.00 $113.00
$200.00 Taxable $10.00 $16.00 $26.00 $226.00
$50.00 Exempt $2.50 $0.00 $2.50 $52.50

Notice how the PST amount is $0.00 for the exempt item, but the GST is still applied.

Frequently Asked Questions

What is the difference between GST and PST in Ontario?

The Goods and Services Tax (GST) is a federal tax that applies to most goods and services in Canada. The Provincial Sales Tax (PST) is an additional tax imposed by Ontario on top of the GST. Together, they make up the total sales tax in Ontario.

Are there any items that are exempt from PST in Ontario?

Yes, some basic items like groceries, prescription drugs, and medical supplies are exempt from PST. However, the GST still applies to these items. Always check the Ontario government website for the most current list of exemptions.

How do I know if an item is taxable or exempt?

You can check the Ontario government website or look for the "PST Exempt" label on the item. If you're unsure, you can use the calculator to estimate the tax amount and then verify with the seller.

Is the GST rate the same in all provinces?

Yes, the GST rate is 5% across all provinces in Canada. However, each province has its own PST rate, which can vary.

Can I use this calculator for business purposes?

This calculator is designed for personal use. For business purposes, you should consult with a tax professional or use specialized business tax software.