Sales Tax Ontario Calculator
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Reviewed by Calculator Editorial Team
Ontario has a complex sales tax system that includes both Harmonized Sales Tax (HST) and Provincial Sales Tax (PST). This calculator helps you determine the total sales tax on purchases in Ontario, including both taxes and any applicable tax credits.
How Ontario Sales Tax Works
Ontario's sales tax system consists of two main components: the Harmonized Sales Tax (HST) and the Provincial Sales Tax (PST). The HST is a combined federal and provincial tax, while the PST is an additional provincial tax that applies to certain goods and services.
HST Calculation
The HST rate in Ontario is currently 13%. This is calculated as:
HST = Price × 0.13
PST Calculation
The PST rate varies depending on the type of product. Common rates include:
- 13% for most goods and services
- 8% for certain food and beverage items
- 0% for exempt items like groceries and prescription drugs
PST = Price × PST Rate
Total Sales Tax
The total sales tax is the sum of the HST and PST:
Total Sales Tax = HST + PST
Tax Credits
Ontario offers various tax credits that can reduce the amount of sales tax you pay. These include:
- Ontario Trillium Benefit (OTB)
- Ontario Child Benefit
- Ontario Disability Support Program (ODSP)
These credits are applied after calculating the total sales tax.
Note: The sales tax rates and exemptions are subject to change. Always verify the current rates before making purchases.
Worked Examples
Example 1: Standard Purchase
You purchase a $100 item with a PST rate of 13%.
HST = $100 × 0.13 = $13
PST = $100 × 0.13 = $13
Total Sales Tax = $13 + $13 = $26
Total Price = $100 + $26 = $126
Example 2: Food Purchase
You purchase a $50 food item with a PST rate of 8%.
HST = $50 × 0.13 = $6.50
PST = $50 × 0.08 = $4
Total Sales Tax = $6.50 + $4 = $10.50
Total Price = $50 + $10.50 = $60.50
Example 3: Exempt Purchase
You purchase a $200 item that is exempt from PST (like groceries).
HST = $200 × 0.13 = $26
PST = $200 × 0 = $0
Total Sales Tax = $26 + $0 = $26
Total Price = $200 + $26 = $226
FAQ
What is the current HST rate in Ontario?
The current HST rate in Ontario is 13%. This is a combined federal and provincial tax.
How do I know what PST rate applies to my purchase?
The PST rate depends on the type of product. Most goods and services have a 13% PST rate, while certain food and beverage items have an 8% rate. Some items are exempt from PST entirely.
Are there any tax credits that can reduce my sales tax?
Yes, Ontario offers several tax credits like the Ontario Trillium Benefit and Ontario Child Benefit that can reduce the amount of sales tax you pay.
Do all purchases in Ontario have sales tax?
No, some basic necessities like groceries and prescription drugs are exempt from sales tax in Ontario.