Ontario Hst Tax Credit Calculator

The Ontario HST Tax Credit is a refundable tax credit that helps Ontario residents reduce their provincial tax liability. This calculator helps you determine your eligible credit based on your income and HST paid.

How the Ontario HST Tax Credit Works

The Ontario HST Tax Credit is designed to provide relief to low- and middle-income Ontarians who pay provincial sales tax (PST) on essential goods and services. The credit is calculated based on your provincial taxable income and the amount of PST you've paid.

Key features of the Ontario HST Tax Credit include:

Refundable credit means you can receive the credit even if it exceeds your provincial tax liability
Available to individuals and families with provincial taxable income up to $150,000
Credit amount varies based on your income bracket and PST paid

Important Note

The Ontario HST Tax Credit is separate from the federal GST/HST credit. Both credits may apply to your tax return, but they are calculated differently.

Eligibility Requirements

To qualify for the Ontario HST Tax Credit, you must meet the following criteria:

Be a resident of Ontario
Have provincial taxable income of $150,000 or less
Have paid PST on essential goods and services
File your provincial tax return

There are no age or income minimums to qualify for the credit, but your income determines the maximum amount of credit you can receive.

How to Calculate Your Credit

The Ontario HST Tax Credit is calculated using the following formula:

Formula

Credit Amount = (PST Paid × Credit Rate) - (Income × Income Rate)

The credit rate and income rate vary based on your income bracket. Here are the current rates:

Income Bracket	Credit Rate	Income Rate
$0 - $47,630	15%	0%
$47,631 - $95,259	12%	0.005%
$95,260 - $150,000	8%	0.01%

For example, if you earn $50,000 and paid $2,000 in PST, your credit would be calculated as:

Example Calculation

Credit Amount = ($2,000 × 12%) - ($50,000 × 0.005%) = $240 - $250 = -$10

In this case, you would not receive a credit because the calculated amount is negative.

Worked Examples

Example 1: Low Income Earner

Income: $30,000
PST Paid: $1,500

Calculation: ($1,500 × 15%) - ($30,000 × 0%) = $225 - $0 = $225

Result: You would receive $225 in credit.

Example 2: Middle Income Earner

Income: $70,000
PST Paid: $3,000

Calculation: ($3,000 × 12%) - ($70,000 × 0.005%) = $360 - $350 = $10

Result: You would receive $10 in credit.

Example 3: High Income Earner

Income: $120,000
PST Paid: $4,000

Calculation: ($4,000 × 8%) - ($120,000 × 0.01%) = $320 - $120 = $200

Result: You would receive $200 in credit.

Frequently Asked Questions

How do I claim the Ontario HST Tax Credit?

You can claim the credit when you file your Ontario tax return. The credit will appear as a line item on your tax return.

Is the Ontario HST Tax Credit refundable?

Yes, the credit is refundable, meaning you can receive the credit even if it exceeds your provincial tax liability.

Can I claim the Ontario HST Tax Credit if I'm self-employed?

Yes, self-employed individuals can claim the credit as long as they meet the eligibility requirements and file their tax return.

How is the Ontario HST Tax Credit different from the federal GST/HST credit?

The Ontario HST Tax Credit is a provincial credit that provides relief for PST paid on essential goods and services. The federal GST/HST credit is a non-refundable credit that reduces your federal tax liability.

When will I receive my Ontario HST Tax Credit refund?

If you're eligible for a refund, you'll receive it along with your provincial tax refund, typically within 4-6 weeks after you file your return.