Sales Tax Calculator Ontario Ca
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Reviewed by Calculator Editorial Team
Calculate the total cost of your purchase including Ontario sales tax with our free online calculator. This tool helps you understand how much tax will be added to your purchase price based on the current tax rates in Ontario.
How to Use This Calculator
Using our sales tax calculator is simple. Follow these steps:
- Enter the price of your item in the "Item Price" field.
- Select the applicable tax rate from the dropdown menu.
- Click the "Calculate" button to see the total cost including tax.
- Review the result and use the "Reset" button to clear the calculator for a new calculation.
This calculator uses the current Ontario sales tax rates. For the most accurate results, ensure you're using the correct tax rate for your purchase.
Ontario Sales Tax Rates
Ontario has a complex sales tax system that includes multiple tax rates depending on the type of product you're purchasing. The main tax rates are:
| Tax Type | Rate | Applies To |
|---|---|---|
| HST (Harmonized Sales Tax) | 13% | Most goods and services |
| PST (Provincial Sales Tax) | 8% | Certain goods and services |
| GST (Goods and Services Tax) | 5% | Federal tax on most goods and services |
The total tax rate you'll pay depends on which taxes apply to your purchase. For example, a purchase subject to both HST and PST would have a total tax rate of 21%.
How Sales Tax Works in Ontario
Sales tax in Ontario is collected by retailers and remitted to the government. The tax is applied to the price of most goods and services sold in Ontario. Here's how it works:
- The retailer adds the sales tax to the price of the item.
- The customer pays the total amount, which includes the original price plus tax.
- The retailer then remits the tax portion to the government.
Sales Tax Formula
Total Cost = Item Price + (Item Price × Tax Rate)
Or
Total Cost = Item Price × (1 + Tax Rate)
This calculator uses the second formula to calculate the total cost including tax.
Worked Examples
Example 1: HST Only
If you purchase an item priced at $100 with a 13% HST rate:
Total Cost = $100 × (1 + 0.13) = $113
The total cost including tax would be $113.
Example 2: HST and PST
If you purchase an item priced at $100 with both HST (13%) and PST (8%):
Total Tax Rate = 13% + 8% = 21%
Total Cost = $100 × (1 + 0.21) = $121
The total cost including tax would be $121.
Frequently Asked Questions
- What is the current sales tax rate in Ontario?
- The current sales tax rates in Ontario vary depending on the type of product. The main rates are 13% HST, 8% PST, and 5% GST.
- Do all items in Ontario have sales tax?
- Most items sold in Ontario are subject to sales tax. However, there are some exemptions for certain goods and services.
- How do I calculate sales tax manually?
- To calculate sales tax manually, multiply the item price by the tax rate and add it to the original price. You can also use our online calculator for quick and accurate results.
- Are there any sales tax exemptions in Ontario?
- Yes, there are several sales tax exemptions in Ontario, including prescription drugs, medical supplies, and certain food items. Check the Ontario government website for the complete list of exemptions.
- How often do sales tax rates change in Ontario?
- Sales tax rates in Ontario are reviewed periodically by the government. While they don't change frequently, it's a good idea to check for updates before making major purchases.