Hst Tax Calculator Ontario

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 your purchases or sales in Ontario.

How HST Works in Ontario

HST is a single sales tax that replaces the previous system of provincial sales tax (PST) and goods and services tax (GST). It applies to most goods and services sold in Ontario, with some exceptions.

HST is calculated as a percentage of the total price of goods or services. The rate varies depending on the type of product or service being purchased.

Key Features of HST

Simplified tax system with a single rate
Applies to most goods and services sold in Ontario
Rate varies by product category
Collected by businesses and remitted to the government

How to Calculate HST

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

HST Amount = (Price × HST Rate) / 100 Total Price = Price + HST Amount

The HST rate varies depending on the type of product or service. Common rates include:

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

Current HST Rates in Ontario

As of 2023, the standard HST rate in Ontario is 13%. However, some goods and services may be subject to a reduced rate of 8%.

Product/Service Type	HST Rate
Most goods and services	13%
Prescription drugs	13%
Newspapers and periodicals	13%
Certain agricultural products	8%
Certain food products	8%

Examples of HST Calculation

Let's look at some examples to understand how HST is calculated in Ontario.

Example 1: Standard Rate (13%)

If you purchase a $100 item with a standard HST rate of 13%:

HST Amount = ($100 × 13) / 100 = $13 Total Price = $100 + $13 = $113

Example 2: Reduced Rate (8%)

If you purchase a $50 item with a reduced HST rate of 8%:

HST Amount = ($50 × 8) / 100 = $4 Total Price = $50 + $4 = $54

Frequently Asked Questions

What is the current HST rate in Ontario?

The standard HST rate in Ontario is 13%. Some goods and services may be subject to a reduced rate of 8%.

How do I calculate HST?

To calculate HST, multiply the price of the item by the applicable HST rate (as a decimal) and add the result to the original price.

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

Yes, some goods and services are exempt from HST, including certain agricultural products, food products, and prescription drugs.

How often does the HST rate change?

The HST rate is reviewed periodically by the government. As of 2023, the standard rate is 13%, but it may change in the future.

Can I claim HST back on my business expenses?

Yes, businesses can claim HST back on eligible business expenses. You'll need to keep proper records and file the appropriate tax forms.