Ontario Sales Tax Calculator 2021

Calculate the sales tax for purchases in Ontario for 2021 using this simple online calculator. Ontario has a unique tax system that combines provincial and federal taxes. This guide explains how to apply the Ontario sales tax rates, understand the different tax types, and determine when items are exempt from tax.

How to Use This Calculator

Enter the price of your item in the "Item Price" field. The calculator will automatically apply the current Ontario sales tax rates to determine the total cost. You can also select whether the item is taxable or exempt from tax.

This calculator uses the Ontario sales tax rates effective in 2021. Rates may change in future years, so always verify current rates when making purchases.

Example Calculation

If you purchase a $100 item in Ontario in 2021:

Enter $100 in the "Item Price" field.
Select "Taxable" from the dropdown menu.
Click "Calculate" to see the total cost including tax.

The calculator will show you the total cost including the Ontario sales tax.

Ontario Tax Rates in 2021

Ontario's sales tax system combines the Provincial Sales Tax (PST) and the Goods and Services Tax (GST). The combined rate is called the Harmonized Sales Tax (HST).

HST Rate in 2021: 13%

This includes:

GST: 5%
PST: 8%

Some items are exempt from the HST, including:

Prescription drugs
Basic groceries
Medical supplies
Certain services

How Sales Tax is Calculated

The sales tax is calculated by multiplying the item price by the tax rate and then adding the tax to the original price.

Formula:

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

For example, a $100 item with a 13% tax rate:

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

This formula applies to all taxable items in Ontario. Exempt items do not have tax added to their price.

Tax Exemptions

Certain items and services are exempt from the Ontario sales tax. These exemptions are in place to help low-income individuals and families.

Exemptions apply to basic necessities like food, clothing, and medical supplies. Always check the Ontario government website for the most up-to-date list of exemptions.

Common exempt items include:

Prescription drugs
Basic groceries
Medical supplies
Certain services

Common Questions

Here are answers to some frequently asked questions about Ontario sales tax.

What is the Ontario sales tax rate in 2021?: The combined Harmonized Sales Tax (HST) rate in Ontario for 2021 is 13%, which includes a 5% GST and an 8% PST.
Are there any items exempt from Ontario sales tax?: Yes, certain items like prescription drugs, basic groceries, and medical supplies are exempt from the HST.
How is the Ontario sales tax calculated?: The sales tax is calculated by multiplying the item price by the tax rate (13%) and then adding the tax to the original price.
Can I use this calculator for future years?: This calculator uses the 2021 tax rates. For future years, you may need to update the rates based on changes announced by the Ontario government.
Where can I find more information about Ontario sales tax?: For more detailed information, visit the Ontario government website.