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Sales Tax Calculator Ontario Canada

Reviewed by Calculator Editorial Team

Calculate the sales tax for purchases in Ontario, Canada with this easy-to-use calculator. Whether you're shopping online or in-store, this tool helps you understand how much tax will be added to your purchase.

How to Use This Calculator

Using our sales tax calculator is simple:

  1. Enter the price of your item in the "Item Price" field.
  2. Select the applicable tax rate from the dropdown menu.
  3. Click the "Calculate" button to see the total amount including tax.
  4. Use the "Reset" button to clear all fields and start over.

The calculator will display the total amount you'll pay, including the sales tax. You can also view a breakdown of the calculation.

Ontario Sales Tax Rates

In Ontario, sales tax is collected through the Harmonized Sales Tax (HST). The current HST rate is 13%. This rate applies to most goods and services sold in Ontario.

Some specific items may be exempt from HST, such as:

  • Basic food items (groceries, prepared meals)
  • Prescription drugs
  • Medical supplies
  • Certain agricultural products

For a complete list of HST-exempt items, you can refer to the Canada Revenue Agency website.

How Sales Tax Works in Ontario

What is HST?

The Harmonized Sales Tax (HST) is a single sales tax that replaces the previous system of provincial sales tax (PST) and federal goods and services tax (GST). It simplifies the tax collection process for businesses and makes it easier for consumers to understand their tax obligations.

How is HST Calculated?

The HST is calculated as a percentage of the price of the item being purchased. The formula is:

HST Formula

HST Amount = Item Price × (HST Rate / 100)

Total Amount = Item Price + HST Amount

Who Collects HST?

In Ontario, businesses are responsible for collecting and remitting HST to the government. They then receive a credit for the GST portion of the HST they've collected, which they can use to offset their own GST obligations.

When is HST Paid?

Consumers pay HST when they make a purchase, but businesses collect and remit it to the government on their behalf. The government then distributes the funds to the provinces and federal government.

Worked Examples

Example 1: Calculating HST for a $50 Purchase

Let's say you're buying an item that costs $50. The HST rate is 13%.

Calculation

HST Amount = $50 × (13 / 100) = $6.50

Total Amount = $50 + $6.50 = $56.50

So, you would pay a total of $56.50 for this item, including HST.

Example 2: Calculating HST for a $100 Purchase

Now, let's consider a larger purchase of $100.

Calculation

HST Amount = $100 × (13 / 100) = $13.00

Total Amount = $100 + $13.00 = $113.00

In this case, the total amount you would pay is $113.00.

Frequently Asked Questions

What is the current HST rate in Ontario?

The current HST rate in Ontario is 13%. This rate applies to most goods and services sold in the province.

Are there any items that are exempt from HST in Ontario?

Yes, there are several items that are exempt from HST in Ontario. These include basic food items, prescription drugs, medical supplies, and certain agricultural products. For a complete list, you can refer to the Canada Revenue Agency website.

How is HST different from GST?

HST is a single sales tax that combines the provincial sales tax (PST) and the federal goods and services tax (GST). It simplifies the tax collection process for businesses and makes it easier for consumers to understand their tax obligations.

Who is responsible for collecting and remitting HST in Ontario?

Businesses are responsible for collecting and remitting HST to the government. They then receive a credit for the GST portion of the HST they've collected, which they can use to offset their own GST obligations.

When is HST paid by consumers in Ontario?

Consumers pay HST when they make a purchase, but businesses collect and remit it to the government on their behalf. The government then distributes the funds to the provinces and federal government.