Ontario Sale Tax Calculator

How Ontario Sale Tax Works

Ontario's sales tax system is unique because it combines provincial and federal taxes into a single rate called the Harmonized Sales Tax (HST). The HST rate in Ontario is currently 13%.

For most purchases, you pay the HST rate directly. However, some goods and services are exempt from HST, and some are subject to the provincial sales tax (PST) rate of 8% plus the federal GST rate of 5%.

The Ontario government provides a comprehensive list of goods and services that are exempt from HST on their website. It's important to check this list before making a purchase to avoid overpaying taxes.

Types of Ontario Sales Tax

There are three main types of sales taxes in Ontario:

1. Harmonized Sales Tax (HST) - The standard sales tax rate of 13% that applies to most goods and services.
2. Provincial Sales Tax (PST) - The provincial portion of the sales tax at 8%.
3. Goods and Services Tax (GST) - The federal portion of the sales tax at 5%.

When you see a price with HST included, it means the seller has already added the 13% tax to the price. If you see a price without HST, you'll need to add the tax yourself.

How to Calculate Ontario Sale Tax

Calculating Ontario sales tax is straightforward once you understand the rates and exemptions. Here's a step-by-step guide:

1. Determine the price of the item before tax.
2. Check if the item is subject to HST, PST, or GST.
3. Apply the appropriate tax rate to the item's price.
4. Add the tax amount to the original price to get the total cost.

Example Calculation

Let's say you're buying a $100 item that's subject to HST:

If the item is subject to PST and GST instead:

Notice that the total tax amount is the same in both cases, but the breakdown differs.

Using the Ontario Sale Tax Calculator

Our calculator makes this process even easier. Simply enter the item price and select whether it's subject to HST, PST, or GST. The calculator will show you the tax amount and total cost.