HST Calculator Ontario 2016

How HST Works in Ontario

Harmonized Sales Tax (HST) is a single tax that combines the provincial sales tax and the federal goods and services tax (GST) into one charge. In Ontario, HST replaced the previous system of separate provincial and federal taxes in 2009.

HST applies to most goods and services sold in Ontario, with some exceptions including basic foods, prescription drugs, and certain medical services.

Key Features of HST

Combines Ontario sales tax and federal GST into one charge
Standard rate of 13% for most goods and services
Reduced rates of 5% for basic foods and prescription drugs
Zero-rated for certain medical services and prescription drugs

HST vs. PST

In other provinces, a similar system called the Provincial Sales Tax (PST) combines the provincial sales tax with the federal GST. However, in Ontario, the combined tax is called HST.

2016 HST Rates

In 2016, the HST rates in Ontario remained the same as they had been since 2009. The standard HST rate was 13%, while the reduced rate for basic foods and prescription drugs was 5%.

Standard HST Rate (2016): 13%

Reduced HST Rate (2016): 5%

HST Exemptions

Certain goods and services were exempt from HST in 2016, including:

Basic foods (groceries)
Prescription drugs
Certain medical services
Newspapers and periodicals
Books and magazines

HST Refunds

If you moved to Ontario from another province, you may be eligible for an HST refund on purchases made before moving to Ontario. This refund is calculated based on the difference between the HST rate in your previous province and the HST rate in Ontario.

How to Calculate HST

Calculating HST is straightforward. You simply multiply the price of the item by the applicable HST rate to determine the amount of tax.

HST Amount = Price × HST Rate

Total Price = Price + HST Amount

Example Calculation

Let's say you purchase a $100 item with a standard HST rate of 13%:

Calculate the HST amount: $100 × 13% = $13
Add the HST to the original price: $100 + $13 = $113

Using the HST Calculator

Our HST calculator makes this process even easier. Simply enter the price of the item and select the applicable HST rate, then click "Calculate" to see the total price including HST.

Common Questions About HST in Ontario

Here are answers to some frequently asked questions about HST in Ontario:

What is the current HST rate in Ontario?

The standard HST rate in Ontario is 13%. The reduced rate for basic foods and prescription drugs is 5%.

Do I have to pay HST on all purchases in Ontario?

HST applies to most goods and services sold in Ontario, but there are some exemptions including basic foods, prescription drugs, and certain medical services.

Can I get a refund for HST paid in another province?