Ontario Retail Tax Calculator

How Ontario Retail Tax Works

In Ontario, retail sales are subject to the Harmonized Sales Tax (HST). The HST combines the federal Goods and Services Tax (GST) and the provincial Sales Tax (PST) into a single tax rate. This means when you see a price with HST included, you're paying both federal and provincial taxes.

When you make a purchase in Ontario, the seller adds the HST to the price. This means the price you see on the shelf or screen is the total amount you'll pay, including tax. You don't need to add anything extra at checkout.

How to Calculate Retail Tax in Ontario

The formula for calculating the total cost including HST is:

For example, if an item costs $100 before tax, the total cost including 13% HST would be:

This means you would pay $113 for the item, with $13 being the HST.

Ontario Tax Rates

The current HST rate in Ontario is 13%, which includes:

• 5% Goods and Services Tax (GST) - federal component
• 8% Provincial Sales Tax (PST) - Ontario's provincial component

This rate applies to most retail purchases in Ontario. Some items may be exempt from HST, which we'll discuss in the next section.

Tax Exemptions in Ontario

Not all items in Ontario are subject to HST. Some common exemptions include:

• Basic food items (groceries, prepared meals)
• Prescription drugs
• Medical supplies and equipment
• Certain clothing items (under $100)
• Books and newspapers
• Some household items

For a complete list of HST exemptions, you can refer to the Ontario government's official list of exemptions.

How to Use This Calculator

Using our Ontario Retail Tax Calculator is simple:

1. Enter the price of your item before tax in the "Price Before Tax" field
2. Select whether you want to calculate the tax amount or the total cost
3. Click the "Calculate" button
4. View your results

The calculator will show you both the tax amount and the total cost including tax. You can also see a breakdown of the GST and PST components.