Gst Hst Ontario Calculator
Ontario combines the federal Goods and Services Tax (GST) with the provincial Harmonized Sales Tax (HST) to create a single sales tax rate. This calculator helps you determine the total tax amount when purchasing goods or services in Ontario.
How GST and HST Work in Ontario
In Ontario, the federal GST and provincial HST combine to form the HST rate. The standard HST rate is currently 13% (5% GST + 8% HST). Some goods and services may be taxed at different rates, but 13% is the most common rate for most consumer purchases.
Note: The HST rate may change periodically. Always verify the current rate before making a purchase.
Key Differences Between GST and HST
- GST is a federal tax collected by the Canada Revenue Agency (CRA)
- HST is a provincial tax collected by the Ontario government
- In Ontario, these taxes combine to form the HST rate
- Other provinces have different tax structures
Calculation Method
The total tax amount is calculated by multiplying the product price by the HST rate. The formula is:
Total Tax = Price × HST Rate
Where HST Rate is typically 0.13 (13%) for most goods and services.
The final price including tax is calculated by adding the tax amount to the original price:
Final Price = Price + Total Tax
Example Calculation
If you purchase a product priced at $100 with a 13% HST rate:
- Calculate the tax amount: $100 × 0.13 = $13
- Add the tax to the original price: $100 + $13 = $113
Example Calculation
Let's calculate the total cost for a $75.99 item with a 13% HST rate:
Tax Amount = $75.99 × 0.13 = $9.88
Final Price = $75.99 + $9.88 = $85.87
This means you would pay $85.87 for the item including tax.
Frequently Asked Questions
What is the current HST rate in Ontario?
The standard HST rate in Ontario is currently 13%, which combines 5% federal GST and 8% provincial HST. Some goods and services may be taxed at different rates.
How do I calculate HST on a purchase?
Multiply the product price by the HST rate (0.13 for standard rate) to get the tax amount, then add this to the original price to get the final amount to pay.
Is HST the same as GST?
No, HST is the combined rate of GST and the provincial sales tax. In Ontario, this combines to 13%. Other provinces have different tax structures.
Are there any items that are not subject to HST?
Yes, some basic food items, prescription drugs, and medical supplies are not subject to HST. Always check the specific tax rules for the item you're purchasing.