Hst Ontario Calculator 2018

HST (Harmonized Sales Tax) is a combined sales tax and goods and services tax (GST) in Ontario. This calculator helps you determine the HST amount for purchases and sales in 2018.

What is HST in Ontario?

HST is a single tax rate that combines the provincial sales tax and the federal GST. It was introduced in Ontario in 2009 to simplify the tax system. The HST rate applies to most goods and services sold in Ontario.

Before HST, Ontario had a provincial sales tax rate of 8% and the federal GST rate was 5%. These were combined to create the HST rate of 13%.

Note: The HST rate in Ontario was 13% in 2018. This rate may have changed in subsequent years.

How to Calculate HST

To calculate HST, you need to know the pre-tax price of the item or service and the applicable HST rate. The formula is:

HST Amount = Price × (HST Rate / 100)

Then, the total amount including HST is:

Total Amount = Price + HST Amount

For example, if an item costs $100 and the HST rate is 13%, the HST amount would be $13 and the total would be $113.

HST Rates in 2018

In 2018, the standard HST rate in Ontario was 13%. This rate applied to most goods and services. There were also zero-rated and exempt items that were not subject to HST.

Standard HST Rate

The standard HST rate was 13% for most goods and services in 2018. This included:

Most consumer goods
Services provided by businesses
Most digital products and services

Zero-Rated Goods

Some goods were zero-rated, meaning they were subject to a reduced HST rate of 5%:

Newspapers and periodicals
Books
Children's clothing
Some medical and dental services

Exempt Goods

Certain goods were exempt from HST:

Prescription drugs
Basic groceries (food, milk, bread, etc.)
Some medical and dental services
Certain agricultural products

Examples of HST Calculations

Here are some examples of how to calculate HST in 2018:

Example 1: Standard HST Rate

An electronics store sells a laptop for $1,200. What is the HST amount and total price?

HST Amount = $1,200 × (13 / 100) = $156
Total Amount = $1,200 + $156 = $1,356

Example 2: Zero-Rated Goods

A bookstore sells a novel for $30. What is the HST amount and total price?

HST Amount = $30 × (5 / 100) = $1.50
Total Amount = $30 + $1.50 = $31.50

Example 3: Exempt Goods

A pharmacy sells a prescription drug for $20. What is the HST amount and total price?

HST Amount = $0 (exempt)
Total Amount = $20

FAQ

What is the HST rate in Ontario in 2018?

The standard HST rate in Ontario was 13% in 2018. Some goods were zero-rated at 5% and certain items were exempt from HST.

How do I calculate HST?

Multiply the price of the item by the HST rate (as a decimal) to get the HST amount. Add this to the original price to get the total amount.

Are there any goods that are exempt from HST?

Yes, prescription drugs, basic groceries, and some medical services were exempt from HST in 2018.

What is the difference between HST and GST?

HST combines the provincial sales tax and the federal GST into a single tax rate. Before HST, Ontario had a separate sales tax and GST.

Can I claim HST back on business expenses?

Yes, businesses can claim HST on eligible business expenses. You would need to keep proper records and submit the correct forms to the Canada Revenue Agency.