Purchase Tax Calculator Ontario

How Ontario Purchase Tax Works

In Ontario, most purchases are subject to the Harmonized Sales Tax (HST), which combines the federal Goods and Services Tax (GST) and the provincial sales tax. The current HST rate in Ontario is 13%.

Some exceptions apply:

• Basic food items (groceries, prepared meals) are tax-exempt
• Prescription drugs are tax-exempt
• Some medical and dental services are tax-exempt
• Certain services (like financial services) may be tax-exempt

How to Use This Calculator

Using this calculator is simple:

1. Enter the price of the item you're purchasing (before tax)
2. Select whether the item is taxable or exempt
3. Click "Calculate" to see the total price including tax
4. Review the breakdown of the calculation

The calculator will show you:

• The base price of the item
• The applicable tax rate
• The calculated tax amount
• The total price including tax

Examples and Scenarios

Let's look at some examples to understand how purchase tax applies in Ontario.

Example 1: Taxable Purchase

You're buying a $100 item that is subject to tax.

Calculation:

• Base price: $100.00
• Tax rate: 13%
• Tax amount: $100 × 0.13 = $13.00
• Total price: $100 + $13 = $113.00

Example 2: Tax-Exempt Purchase

You're buying a loaf of bread that is tax-exempt.

Calculation:

• Base price: $5.00
• Tax rate: 0%
• Tax amount: $0.00
• Total price: $5.00

Example 3: Multiple Items

You're buying several items with different tax statuses.