Sales Tax Calculator Ontario 2016
Calculate the sales tax for purchases in Ontario during 2016 using our free online calculator. Understand Ontario's Harmonized Sales Tax (HST) and Provincial Sales Tax (PST) rates, how they apply to different products, and how to determine the total cost of your purchases including tax.
How to Use This Calculator
Using our sales tax calculator for Ontario 2016 is simple:
- Enter the price of the item you're purchasing in the "Item Price" field.
- Select whether the item is taxable (most items are) or exempt from sales tax.
- Click the "Calculate" button to see the total cost including tax.
- Review the breakdown of the tax amount and total cost.
The calculator will show you the HST and PST amounts separately, as well as the total tax and total cost. You can also see a chart comparing the tax amounts for different price ranges.
Ontario Sales Tax Rates in 2016
In 2016, Ontario had two main sales tax rates:
- HST (Harmonized Sales Tax): 13%
- PST (Provincial Sales Tax): 8%
The total sales tax rate in Ontario was 21% (13% HST + 8% PST). However, some items were exempt from the PST, which meant they were only subject to the HST.
Note: The sales tax rates in Ontario have changed since 2016. This calculator uses the 2016 rates for historical reference.
How Sales Tax Works in Ontario
When you make a purchase in Ontario, the sales tax is calculated based on the price of the item and the applicable tax rates. Here's how it works:
- The seller adds the sales tax to the price of the item.
- The total amount you pay includes both the original price and the sales tax.
- If the item is exempt from PST, only the HST is applied.
For example, if you buy a $100 item that is taxable, the total cost would be $121 (100 + 13% HST + 8% PST). If the item is exempt from PST, the total cost would be $113 (100 + 13% HST).
Common Exemptions from Sales Tax
Some items are exempt from the PST in Ontario, which means they are only subject to the HST. Common exemptions include:
- Prescription drugs
- Medical devices
- Food and groceries
- Books and newspapers
- Children's clothing and shoes
- Certain household items
Always check the Ontario government website for the most up-to-date list of exemptions.
How to Calculate Sales Tax Manually
If you prefer to calculate the sales tax manually, you can use the following formulas:
Total Tax = (Item Price × HST Rate) + (Item Price × PST Rate)
Total Cost = Item Price + Total Tax
For example, to calculate the total cost of a $50 item that is taxable:
- Calculate the HST: $50 × 0.13 = $6.50
- Calculate the PST: $50 × 0.08 = $4.00
- Total Tax = $6.50 + $4.00 = $10.50
- Total Cost = $50 + $10.50 = $60.50
Frequently Asked Questions
- What is the sales tax rate in Ontario in 2016?
- The total sales tax rate in Ontario in 2016 was 21%, consisting of 13% HST and 8% PST.
- Are there any items exempt from sales tax in Ontario?
- Yes, some items are exempt from the PST, which means they are only subject to the HST. Common exemptions include prescription drugs, food, and children's clothing.
- How do I calculate the sales tax on an item?
- Multiply the item price by the applicable tax rates (HST and PST for taxable items) and add the result to the original price.
- Can I use this calculator for purchases made in 2016?
- Yes, this calculator uses the 2016 sales tax rates to help you calculate the total cost of purchases made during that year.
- Where can I find the most up-to-date sales tax information for Ontario?
- You can find the most up-to-date sales tax information on the Ontario government website or by contacting the Ministry of Finance.