Ontario Sales Tax Calculator 2017

This Ontario Sales Tax Calculator helps you determine the total cost of a purchase including all applicable taxes for the year 2017. Understanding Ontario's sales tax system is essential for both consumers and businesses. This guide explains the different tax rates, how to calculate them, and what exemptions apply.

How Ontario Sales Tax Works

Ontario's sales tax system consists of three main components: the Harmonized Sales Tax (HST), the Provincial Sales Tax (PST), and the Goods and Services Tax (GST). These taxes are applied to most goods and services sold in Ontario.

The HST is a combination of the federal GST and the provincial PST. The GST is a federal tax that applies to most goods and services sold in Canada, while the PST is a provincial tax that applies to most goods and services sold in Ontario.

HST = GST + PST

In 2017, the combined rate for HST was 13%. This means that for every $100 of taxable goods or services, $13 in tax was added to the price.

Tax Rates in 2017

In 2017, the tax rates in Ontario were as follows:

GST: 5%
PST: 8%
HST: 13% (GST + PST)

These rates applied to most goods and services sold in Ontario. However, there are some exemptions and reductions that apply to certain items.

Note: Tax rates can change annually. Always verify the current rates before making a purchase or filing a tax return.

How to Calculate Sales Tax

Calculating sales tax in Ontario is straightforward. You can use the following formula to determine the total cost of a purchase including tax:

Total Cost = Purchase Price + (Purchase Price × Tax Rate)

For example, if you purchase a $100 item with a 13% HST rate, the total cost would be:

Total Cost = $100 + ($100 × 0.13) = $113

This calculator automates this calculation for you, making it easy to determine the total cost of any purchase in Ontario.

Exemptions and Reductions

Not all goods and services are subject to the full HST rate. There are several exemptions and reductions that apply to certain items. Some common exemptions include:

Basic foods and groceries
Prescription drugs
Medical devices and services
Certain types of clothing
Books and newspapers

For a complete list of exemptions and reductions, you can refer to the Ontario Ministry of Finance website.

Common Misconceptions

There are several common misconceptions about Ontario's sales tax system. One of the most prevalent is the belief that all goods and services are subject to the same tax rate. In reality, there are exemptions and reductions that apply to certain items.

Another common misconception is that the HST is only applied to the final price of a purchase. In reality, the HST is applied to the pre-tax price of the item.

Always verify the tax rate and exemptions before making a purchase or filing a tax return.

FAQ

What is the current HST rate in Ontario?: The HST rate in Ontario is 13%, which is the sum of the 5% GST and the 8% PST.
Are there any exemptions to the HST?: Yes, there are several exemptions and reductions that apply to certain goods and services. These include basic foods and groceries, prescription drugs, medical devices and services, certain types of clothing, and books and newspapers.
How do I calculate the HST on a purchase?: You can use the formula: Total Cost = Purchase Price + (Purchase Price × Tax Rate). For example, a $100 item with a 13% HST rate would cost $113 in total.
Can I claim a refund for HST paid on certain items?: Yes, you may be eligible for a refund for HST paid on certain items, such as medical devices and services, if you meet the eligibility criteria.
Where can I find more information about Ontario's sales tax system?: You can find more information on the Ontario Ministry of Finance website or by consulting a tax professional.