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Ontario Tax Calculator Sales

Reviewed by Calculator Editorial Team

This Ontario tax calculator for sales helps businesses determine how much sales tax they owe on their taxable sales. It accounts for the Harmonized Sales Tax (HST), Provincial Sales Tax (PST), and Goods and Services Tax (GST) rates in Ontario.

How Ontario Sales Tax Works

Ontario uses a combination of sales taxes to fund provincial services. The main taxes include:

  • HST (Harmonized Sales Tax): A combined provincial and federal tax that applies to most goods and services.
  • PST (Provincial Sales Tax): The provincial portion of the HST.
  • GST (Goods and Services Tax): The federal portion of the HST.

The HST rate in Ontario is currently 13%. This means that for every $100 of taxable sales, your business owes $13 in HST. The PST portion is 8% and the GST portion is 5%.

HST = Sales × HST Rate HST = Sales × 0.13

Businesses must collect HST from their customers and remit it to the government. The HST is then distributed between the province and federal government based on the split between PST and GST.

Ontario Tax Rates

The current Ontario sales tax rates are:

  • HST (Harmonized Sales Tax): 13%
  • PST (Provincial Sales Tax): 8%
  • GST (Goods and Services Tax): 5%
Tax Type Rate Applies To
HST 13% Most goods and services
PST 8% Provincial portion of HST
GST 5% Federal portion of HST

These rates are subject to change, so it's important to verify them with the latest government publications before filing your sales tax return.

Sales Tax Exemptions

Not all sales are subject to HST in Ontario. Some goods and services are exempt from sales tax. Common exemptions include:

  • Basic food and groceries
  • Prescription drugs
  • Medical devices and services
  • Books, newspapers, and periodicals
  • Certain residential services

Always check the latest list of exemptions from the Ontario government to ensure you're correctly classifying your sales.

How to File Sales Tax

Businesses in Ontario must file their sales tax returns with the government. The process typically involves:

  1. Calculating your total taxable sales
  2. Determining your HST liability
  3. Remitting the tax to the government
  4. Filing your sales tax return

The filing frequency depends on your business's sales volume. Most businesses file quarterly, but some may need to file monthly or annually.

FAQ

What is the current HST rate in Ontario?
The current HST rate in Ontario is 13%. This includes 8% PST and 5% GST.
How often do I need to file my sales tax return?
Most businesses file sales tax returns quarterly. However, businesses with higher sales volumes may need to file more frequently.
What sales are exempt from HST in Ontario?
Basic food and groceries, prescription drugs, medical devices and services, books, newspapers, and periodicals are exempt from HST.