Hst Calculator Ontario 2020

This HST calculator for Ontario in 2020 helps you determine the Harmonized Sales Tax (HST) on purchases made in the province. The calculator uses the official 2020 HST rates and provides clear explanations of how HST is applied to different types of goods and services.

How to Use This Calculator

To calculate the HST for a purchase in Ontario during 2020:

Enter the total price of the item or service in the "Price before HST" field.
Select the appropriate HST rate from the dropdown menu based on the type of product or service.
Click the "Calculate HST" button to see the HST amount and the total price including HST.
Review the results and use the information to complete your purchase or for tax-related documentation.

The calculator will display the HST amount and the total price including HST. You can also see a breakdown of the calculation and how the HST rate applies to your purchase.

Ontario HST Rates in 2020

In 2020, Ontario had the following HST rates:

Standard HST rate: 13%
Reduced HST rate: 8%
Zero-rated HST: 0% (for certain goods and services)

The standard HST rate of 13% applies to most goods and services. The reduced HST rate of 8% applies to certain goods and services, such as groceries and prescription drugs. Some goods and services are zero-rated, meaning they are not subject to HST.

Note: The HST rates in Ontario may change in future years. Always check the current rates before making a purchase or filing tax returns.

How HST is Calculated

The HST is calculated as a percentage of the price of the goods or services. The formula for calculating the HST is:

HST Amount = Price before HST × (HST Rate / 100)

Total Price = Price before HST + HST Amount

For example, if you purchase a product with a price before HST of $100 and the HST rate is 13%, the HST amount would be $13, and the total price would be $113.

The HST is added to the price of the goods or services and is included in the final price that the customer pays. The HST is then remitted to the government by the seller.

HST Exemptions in Ontario

Certain goods and services are exempt from HST in Ontario. These include:

Basic food and beverages
Prescription drugs
Medical devices and supplies
Certain educational services
Certain financial services

Goods and services that are exempt from HST are not subject to the HST, and the seller does not collect HST on these items. The customer is responsible for paying the HST on these items when they file their tax returns.

Note: The list of HST exemptions may change over time. Always check the current list of exemptions before making a purchase or filing tax returns.

Worked Examples

Here are some worked examples of how to calculate HST in Ontario during 2020:

Example 1: Standard HST Rate

You purchase a laptop with a price before HST of $1,200. The standard HST rate is 13%.

HST Amount = $1,200 × (13 / 100) = $156

Total Price = $1,200 + $156 = $1,356

Example 2: Reduced HST Rate

You purchase a loaf of bread with a price before HST of $3. The reduced HST rate is 8%.

HST Amount = $3 × (8 / 100) = $0.24

Total Price = $3 + $0.24 = $3.24

Example 3: Zero-Rated HST

You purchase a prescription drug with a price before HST of $20. The HST rate is 0% because prescription drugs are zero-rated.

HST Amount = $20 × (0 / 100) = $0

Total Price = $20 + $0 = $20

Frequently Asked Questions

What is the HST rate in Ontario for 2020?

In 2020, the standard HST rate in Ontario was 13%, and the reduced HST rate was 8%. Some goods and services were zero-rated, meaning they were not subject to HST.

How do I calculate HST in Ontario?

To calculate HST in Ontario, multiply the price of the goods or services by the HST rate (as a decimal). Add the HST amount to the original price to get the total price including HST.

Are there any goods or services that are exempt from HST in Ontario?

Yes, certain goods and services are exempt from HST in Ontario. These include basic food and beverages, prescription drugs, medical devices and supplies, certain educational services, and certain financial services.

How do I know if a product or service is exempt from HST in Ontario?

You can check the list of HST exemptions on the Ontario government website or consult the seller to determine if a product or service is exempt from HST.

What happens if I don't pay the correct amount of HST on a purchase?

If you don't pay the correct amount of HST on a purchase, you may be subject to penalties and interest. It's important to calculate and pay the correct amount of HST on all purchases.