Sales Tax Calculator Ontario

Calculating sales tax in Ontario can be confusing with multiple tax types and exemptions. This calculator helps you determine the total cost of an item including HST, PST, and GST. Learn about Ontario's tax rates, exemptions, and how to apply them correctly.

How to Use This Calculator

Using our sales tax calculator is simple:

Enter the price of the item before tax in the "Item Price" field.
Select the applicable tax type from the dropdown menu (HST, PST, or GST).
Click "Calculate" to see the total cost including tax.
Review the breakdown of the calculation and any applicable exemptions.

The calculator will display the total cost including tax and show you how much tax was added. You can also view a breakdown of the calculation and any applicable exemptions.

Ontario Sales Tax Rates

Ontario has three main types of sales tax:

HST (Harmonized Sales Tax): 13% - Applies to most goods and services.
PST (Provincial Sales Tax): 8% - Applies to specific goods and services.
GST (Goods and Services Tax): 5% - A federal tax that is included in the HST.

Note: The HST rate of 13% is the combination of the PST (8%) and GST (5%). When you see a price with HST included, it means both provincial and federal taxes are already added.

How Sales Tax Is Calculated in Ontario

Sales tax in Ontario is calculated based on the type of tax applied to the item. Here's how it works:

For HST (13%):

Total Cost = Item Price + (Item Price × 0.13)

For PST (8%):

Total Cost = Item Price + (Item Price × 0.08)

For GST (5%):

Total Cost = Item Price + (Item Price × 0.05)

For example, if you buy a $100 item with HST:

Total Cost = $100 + ($100 × 0.13) = $113

The tax amount is $13, making the total cost $113.

Sales Tax Exemptions in Ontario

Some items are exempt from sales tax in Ontario. Common exemptions include:

Prescription drugs
Food and groceries
Clothing and household items under certain price limits
Medical supplies and equipment

It's important to check if an item is exempt before purchasing to avoid paying unnecessary tax. You can find a complete list of exemptions on the Ontario government website.

Common Mistakes When Calculating Sales Tax

When calculating sales tax, it's easy to make mistakes. Here are some common errors to avoid:

Applying the wrong tax rate: Make sure you're using the correct tax rate for the item you're purchasing.
Forgetting to add tax to the total cost: Always add the tax to the item price to get the total cost.
Assuming all items are taxable: Some items are exempt from sales tax, so be sure to check before purchasing.
Rounding errors: Be careful when rounding numbers to avoid incorrect totals.

Using our calculator helps you avoid these mistakes by providing accurate calculations and clear explanations.

Frequently Asked Questions

What is the current sales tax rate in Ontario?: The current sales tax rate in Ontario is 13% HST, which includes 8% PST and 5% GST.
Do I need to pay sales tax on all purchases in Ontario?: No, some items are exempt from sales tax. Common exemptions include prescription drugs, food, and clothing under certain price limits.
How do I calculate sales tax in Ontario?: Multiply the item price by the applicable tax rate (13% for HST, 8% for PST, or 5% for GST) and add the result to the item price.
Is sales tax included in the price of most items in Ontario?: Yes, most items in Ontario have HST included in the price. You'll see "HST included" or "HST" on the price tag.
Where can I find a list of sales tax exemptions in Ontario?: You can find a complete list of sales tax exemptions on the Ontario government website.