Net Hst Calculator Ontario

Calculate the net HST (Harmonized Sales Tax) in Ontario with our free online calculator. Understand how HST is applied to your purchases, how it compares to other taxes, and how to interpret your net HST amount.

What is Net HST in Ontario?

Net HST refers to the portion of the Harmonized Sales Tax (HST) that remains after any applicable rebates or credits. In Ontario, HST is a consumption tax that applies to most goods and services sold in the province. The net HST amount is what you actually pay after any reductions or exemptions.

The Ontario government collects HST to fund provincial services. The tax rate varies by municipality, typically ranging from 8% to 13%. The net HST amount is calculated by applying the applicable rate to the purchase price and then subtracting any applicable rebates or credits.

How to Calculate Net HST

The net HST is calculated using the following formula:

Net HST = (Purchase Price × HST Rate) - HST Rebates/Credits

Where:

Purchase Price - The total cost of the goods or services before tax
HST Rate - The applicable HST rate for your municipality (typically 8% to 13%)
HST Rebates/Credits - Any applicable rebates or credits that reduce your HST liability

For example, if you purchase a $100 item in a municipality with an 8% HST rate and receive a $5 HST rebate, your net HST would be:

Net HST = ($100 × 0.08) - $5 = $8 - $5 = $3

HST Rates in Ontario

The HST rate in Ontario varies by municipality. Here are some common rates:

Municipality	HST Rate
Toronto	13%
Ottawa	13%
Mississauga	13%
Brampton	13%
Hamilton	13%
London	13%
Windsor	13%
Other municipalities	8% to 13%

Note that some items may be exempt from HST, such as prescription drugs, medical devices, and certain basic necessities.

Net HST Examples

Let's look at a few examples to illustrate how net HST is calculated in Ontario.

Example 1: Purchase in Toronto

You purchase a $200 item in Toronto (13% HST rate) and receive a $10 HST rebate.

Net HST = ($200 × 0.13) - $10 = $26 - $10 = $16

Example 2: Purchase in a Small Town

You purchase a $50 item in a small town with an 8% HST rate and no rebates.

Net HST = ($50 × 0.08) - $0 = $4 - $0 = $4

Example 3: Purchase with Multiple Items

You purchase two items in Ottawa (13% HST rate): $150 and $75, and receive a $15 HST rebate.

Total Purchase Price = $150 + $75 = $225

Total HST = $225 × 0.13 = $29.25

Net HST = $29.25 - $15 = $14.25

Frequently Asked Questions

What is the difference between HST and GST?

HST (Harmonized Sales Tax) is a single sales tax that combines the federal GST (Goods and Services Tax) and provincial PST (Provincial Sales Tax). In Ontario, the HST rate is typically 13%, which is the sum of the 5% GST and 8% PST.

How do I know my municipality's HST rate?

You can find your municipality's HST rate on the Ontario government's website or by checking your recent tax invoices. The rate is typically displayed as a percentage next to the HST amount.

Are there any items that are exempt from HST?

Yes, some items are exempt from HST, including prescription drugs, medical devices, and certain basic necessities. You can find a complete list of exempt items on the Ontario government's website.

How do I claim HST rebates?

HST rebates are typically claimed through your tax return. You'll need to provide proof of your HST payments and any eligible expenses. The Canada Revenue Agency (CRA) will calculate your rebate and apply it to your tax return.

Can I avoid paying HST?

You cannot avoid paying HST on most goods and services, but you may be able to claim HST rebates if you meet certain criteria. Additionally, some items are exempt from HST, so you may be able to avoid paying HST on those items.