Ontario Sales Taxes Calculator

Ontario sales taxes can be confusing with multiple tax rates and exemptions. This calculator helps you determine how much sales tax you'll pay on purchases in Ontario, including both HST and PST where applicable.

How Ontario Sales Taxes Work

Ontario has a complex sales tax system that includes the Harmonized Sales Tax (HST) and the Provincial Sales Tax (PST) in some regions. The HST is a combination of the federal Goods and Services Tax (GST) and the provincial sales tax.

Key Points

HST is charged on most goods and services in Ontario
PST is charged in addition to HST in some regions
Some items are exempt from sales tax
Tax rates vary by product category

The Ontario government sets the sales tax rates, and they can change periodically. It's important to understand how these taxes apply to different types of purchases to avoid overpaying or underpaying.

Current Ontario Sales Tax Rates

As of 2023, the standard HST rate in Ontario is 13%. However, there are different rates for different types of products:

Product Category	HST Rate	PST Rate (if applicable)
Most goods and services	13%	N/A
Alcohol	13%	N/A
Food	13%	N/A
Prescription drugs	0%	N/A
Medical devices	0%	N/A

In some regions of Ontario, a PST may be charged in addition to the HST. For example, in the City of Toronto, the PST rate is 8%.

How to Calculate Ontario Sales Taxes

Calculating Ontario sales taxes involves several steps. First, you need to determine the pre-tax price of the item. Then, you apply the appropriate sales tax rate(s).

Formula

Total Price = Pre-tax Price + (Pre-tax Price × HST Rate) + (Pre-tax Price × PST Rate)

Sales Tax Amount = (Pre-tax Price × HST Rate) + (Pre-tax Price × PST Rate)

For items that are exempt from sales tax, the total price equals the pre-tax price.

Step-by-Step Calculation

Identify the pre-tax price of the item
Determine if the item is subject to HST and/or PST
Apply the appropriate tax rates to the pre-tax price
Add the tax amounts to the pre-tax price to get the total price

Examples of Ontario Sales Tax Calculations

Let's look at a few examples to illustrate how Ontario sales taxes work.

Example 1: Standard HST Applicable Item

You purchase a $100 item that is subject to the standard HST rate of 13%.

Calculation:

HST Amount = $100 × 13% = $13
Total Price = $100 + $13 = $113

Example 2: Item with PST in Toronto

You purchase a $100 item in Toronto that is subject to both HST (13%) and PST (8%).

Calculation:

HST Amount = $100 × 13% = $13
PST Amount = $100 × 8% = $8
Total Tax = $13 + $8 = $21
Total Price = $100 + $21 = $121

Example 3: Tax-Exempt Item

You purchase a prescription drug that is exempt from sales tax.

Calculation:

Total Price = $100 (no tax applied)

Frequently Asked Questions

What is the difference between HST and PST in Ontario?

The Harmonized Sales Tax (HST) is a combination of the federal Goods and Services Tax (GST) and the provincial sales tax. The Provincial Sales Tax (PST) is charged in addition to HST in some regions of Ontario, such as Toronto.

Are there any items that are exempt from sales tax in Ontario?

Yes, certain items such as prescription drugs, medical devices, and some food items are exempt from sales tax in Ontario.

How do I know if an item is subject to PST in Toronto?

Most items purchased in Toronto are subject to both HST and PST. However, some items may be exempt from PST. You can check the Ontario government's website for the most current information.

Can I claim a refund for sales tax paid on certain items?

Yes, you may be eligible for a refund of sales tax paid on certain items if you meet the eligibility criteria. You can apply for a refund through the Ontario government's sales tax refund program.