Ontario Sales Tax Calculator 2016
Calculate the total sales tax for purchases in Ontario during 2016 using this comprehensive calculator. Understand the different tax rates, how they apply to different types of goods and services, and how to properly account for them in your transactions.
How to Use This Calculator
Using this Ontario sales tax calculator is simple:
- Enter the pre-tax price of your item in the "Price before tax" field
- Select whether you're purchasing a taxable or exempt item
- Choose the tax rate that applies to your purchase
- Click "Calculate" to see the total price including tax
The calculator will show you the total amount you'll pay, including the tax, and provide a breakdown of how the tax was calculated.
Ontario Tax Rates in 2016
In 2016, Ontario implemented the Harmonized Sales Tax (HST) system, which replaced the previous combination of Goods and Services Tax (GST) and Provincial Sales Tax (PST). The standard HST rate was 13% for most goods and services.
Important Note
The tax rates shown here are specific to 2016. Ontario's tax rates have changed since then, so these figures should not be used for current calculations.
| Tax Type | Rate (2016) | Applies To |
|---|---|---|
| HST | 13% | Most goods and services |
| PST | 8% | Some specific goods and services |
| GST | 5% | Federal goods and services |
How the Calculation Works
The Ontario sales tax calculator uses the following formula to determine the total price including tax:
Formula
Total Price = Price Before Tax + (Price Before Tax × Tax Rate)
For example, if you purchase an item priced at $100 before tax with a 13% HST rate:
- Tax Amount = $100 × 0.13 = $13
- Total Price = $100 + $13 = $113
The calculator automatically applies the selected tax rate to the pre-tax price to give you the total amount you'll pay.
Worked Examples
Example 1: Standard HST Purchase
You buy a $50 item with a 13% HST rate:
- Tax = $50 × 0.13 = $6.50
- Total = $50 + $6.50 = $56.50
Example 2: PST Applicable Purchase
You buy a $200 item with an 8% PST rate:
- Tax = $200 × 0.08 = $16
- Total = $200 + $16 = $216
Example 3: GST Applicable Purchase
You buy a $75 item with a 5% GST rate:
- Tax = $75 × 0.05 = $3.75
- Total = $75 + $3.75 = $78.75
Frequently Asked Questions
- What is the standard sales tax rate in Ontario in 2016?
- The standard Harmonized Sales Tax (HST) rate in Ontario for 2016 was 13%. This rate applied to most goods and services.
- Are there any items that are exempt from sales tax in Ontario?
- Yes, certain items are exempt from sales tax in Ontario, including basic food items, prescription drugs, and some medical supplies. The calculator allows you to select whether your item is taxable or exempt.
- How do I know which tax rate to use for my purchase?
- The tax rate depends on the type of item you're purchasing. Most goods and services use the 13% HST rate, while some specific items may use the 8% PST rate or the 5% GST rate. The calculator provides options for all applicable rates.
- Can I use this calculator for purchases made after 2016?
- No, this calculator is specifically for 2016 tax rates. Ontario's tax rates have changed since then, so you should use current tax rates for purchases made after 2016.
- Is the sales tax included in the price I see on store signs?
- In Ontario, the sales tax is typically added to the price at the point of sale, so the price you see on store signs usually includes the tax. However, the calculator allows you to calculate the total price including tax from the pre-tax amount.