Ontario Canada Sales Tax Calculator
Ontario's sales tax system is one of the most complex in Canada, combining federal and provincial taxes. This calculator helps you understand how much tax you'll pay on purchases in Ontario, including the Harmonized Sales Tax (HST), Provincial Sales Tax (PST), and Goods and Services Tax (GST).
How Ontario Sales Tax Works
Ontario's sales tax system is a combination of federal and provincial taxes that apply to most goods and services sold in the province. The main components are:
Harmonized Sales Tax (HST): This is the combined rate of GST and PST. For most purchases, you pay the HST rate, which is 13% (15% in some cases).
The calculation works like this:
For example, if you buy a $100 item with a 13% HST rate:
There are different tax rates depending on the type of product you're purchasing:
- Most goods and services: 13% HST
- Some essentials like groceries, prescription drugs, and medical supplies: 8% PST
- Some services like accommodation and transportation: 13% HST
Current Tax Rates in Ontario
As of 2023, the main sales tax rates in Ontario are:
| Tax Type | Rate | Applies To |
|---|---|---|
| HST | 13% | Most goods and services |
| PST | 8% | Prescription drugs, medical supplies, groceries |
| GST | 5% | Federal component of HST |
Some items are tax-exempt, including:
- Basic food and household supplies
- Prescription drugs
- Medical supplies
- Some services like accommodation and transportation
Tax Exemptions in Ontario
Ontario has several categories of tax exemptions that apply to different types of goods and services. The main exemptions include:
Basic Food and Household Supplies: These items are exempt from PST but may still be subject to GST/HST.
Other exemptions include:
- Prescription drugs and medical supplies
- Some services like accommodation and transportation
- Certain types of clothing and footwear
It's important to note that while some items are exempt from PST, they may still be subject to GST/HST. Always check the specific tax rules for the item you're purchasing.
How to Use This Calculator
Using this calculator is simple:
- Enter the original price of the item you're purchasing
- Select the appropriate tax rate based on the type of item
- Click "Calculate" to see the total price including tax
- Review the breakdown of the tax amount
For example, if you're buying a $100 item that's subject to 13% HST:
- Enter $100 in the "Original Price" field
- Select "13% HST" from the tax rate dropdown
- Click "Calculate"
- The calculator will show you the total price is $113, with $13 in tax