Hst Ontario Rate Calculator

Ontario's Harmonized Sales Tax (HST) is a consumption tax applied to most goods and services sold in the province. This calculator helps you determine the HST amount for any purchase price, making it easy to understand how much tax you'll pay.

What is HST in Ontario?

Harmonized Sales Tax (HST) is a single sales tax rate that combines the previous provincial sales tax (PST) and the federal goods and services tax (GST). In Ontario, HST replaced the PST in 2010, creating a unified tax system.

The HST rate in Ontario is currently 13%. This means that when you purchase taxable goods or services, 13% of the price is added as tax. The remaining 87% goes to the seller.

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

How to Calculate HST

Calculating HST is straightforward. You simply multiply the price of the item by the HST rate (13%) to find the tax amount. Then add this amount to the original price to get the total cost.

HST Amount = Price × HST Rate

Total Cost = Price + HST Amount

For example, if you buy a product priced at $100, the HST would be $13, making the total cost $113.

Current HST Rates in Ontario

The current HST rate in Ontario is 13%. This rate applies to most goods and services sold in the province. However, there are some exceptions where the tax rate may be different.

Tax Type	Rate	Applies To
HST	13%	Most goods and services
GST	5%	Federal government services
PST	8%	Certain provincial services (rare in Ontario)

It's important to note that some basic food items and prescription drugs are not subject to HST in Ontario.

How HST Works in Ontario

When you make a purchase in Ontario, the seller adds the HST to the price before you pay. This means you pay the total amount including tax. The tax is then collected by the government and distributed to various levels of government for different purposes.

The HST system in Ontario is designed to simplify the tax collection process. Instead of dealing with multiple taxes, businesses and consumers only need to account for one tax rate.

HST is a consumption tax, meaning it's paid by the person who consumes the goods or services, rather than the person who produces or sells them.

Frequently Asked Questions

What is the current HST rate in Ontario?

The current HST rate in Ontario is 13%. This rate applies to most goods and services sold in the province.

How do I calculate HST on a purchase?

To calculate HST, multiply the price of the item by 13% (the HST rate). Then add this amount to the original price to get the total cost.

Are there any items that are not subject to HST in Ontario?

Yes, some basic food items and prescription drugs are not subject to HST in Ontario.

How is HST different from GST and PST?

HST combines the previous provincial sales tax (PST) and the federal goods and services tax (GST) into a single tax rate. This simplifies the tax system for businesses and consumers.