Sales Tax in Ontario Calculator
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Reviewed by Calculator Editorial Team
Calculate the sales tax you need to pay when making purchases in Ontario. This calculator helps you determine the total cost including tax based on the current sales tax rates in Ontario.
How to Calculate Sales Tax in Ontario
To calculate sales tax in Ontario, you need to know the pre-tax price of the item and the applicable sales tax rate. The formula is straightforward:
Sales Tax Formula
Total Cost = Pre-Tax Price + (Pre-Tax Price × Sales Tax Rate)
Sales Tax Amount = Pre-Tax Price × Sales Tax Rate
For example, if you buy an item priced at $100 before tax and the sales tax rate is 13%, the calculation would be:
Example Calculation
Pre-Tax Price: $100
Sales Tax Rate: 13%
Sales Tax Amount: $100 × 0.13 = $13
Total Cost: $100 + $13 = $113
Use our calculator above to perform this calculation quickly and accurately.
Current Sales Tax Rates in Ontario
As of 2023, the standard sales tax rate in Ontario is 13%. This rate applies to most goods and services sold in the province. Some items may be exempt from sales tax or subject to different rates.
| Tax Type | Rate | Applies To |
|---|---|---|
| Harmonized Sales Tax (HST) | 13% | Most goods and services |
| Provincial Sales Tax (PST) | 8% | Certain goods and services |
| Goods and Services Tax (GST) | 5% | Federal goods and services |
For a complete list of taxable and exempt items, refer to the Ontario government website.
How Sales Tax Works in Ontario
Sales tax in Ontario is collected by retailers and remitted to the government. The Harmonized Sales Tax (HST) combines the provincial and federal sales taxes into a single rate. Here's how it works:
- When you purchase an item, the retailer adds the sales tax to the price.
- The retailer collects the tax from you and remits it to the government.
- The government uses the collected taxes to fund provincial and federal programs.
Some items are exempt from sales tax, such as basic groceries, prescription drugs, and medical equipment. These exemptions help reduce the overall cost of living for residents.
Sales Tax Exemptions in Ontario
Certain items are exempt from sales tax in Ontario. These include:
- Basic food and groceries
- Prescription drugs
- Medical equipment and supplies
- Books and newspapers
- Certain clothing items
For a complete list of exemptions, check the Ontario government's tax exemptions page.
FAQ
What is the current sales tax rate in Ontario?
The current standard sales tax rate in Ontario is 13%, which includes both provincial and federal taxes combined into the Harmonized Sales Tax (HST).
Are there any items that are exempt from sales tax in Ontario?
Yes, certain items such as basic groceries, prescription drugs, and medical equipment are exempt from sales tax in Ontario.
How do I calculate the sales tax on an item?
To calculate sales tax, multiply the pre-tax price of the item by the sales tax rate (13%). Add this amount to the pre-tax price to get the total cost.
Where can I find more information about Ontario sales tax?
For more detailed information, visit the Ontario government's taxes and charges page.