Sales Tax Ontario Canada Calculator
Ontario's sales tax system is based on the Harmonized Sales Tax (HST) system, which combines provincial and federal taxes into a single rate. This calculator helps you determine the total sales tax for purchases in Ontario, including the HST rate and any applicable exemptions.
How Ontario Sales Tax Works
The Harmonized Sales Tax (HST) in Ontario combines the provincial sales tax and the federal Goods and Services Tax (GST) into a single rate. The current HST rate in Ontario is 13%.
Key Points
- HST rate in Ontario: 13%
- Applies to most goods and services sold in Ontario
- Some items may be exempt from HST
- Tax is calculated on the total price of the item
How to Calculate Sales Tax in Ontario
The formula for calculating the total price including HST is:
Formula
Total Price = Original Price + (Original Price × HST Rate)
Total Price = P + (P × 0.13)
Total Price = P × 1.13
Where P is the original price of the item before tax.
Exemptions from HST
Some items are exempt from HST in Ontario, including:
- Prescription drugs
- Medical devices
- Basic groceries (in some cases)
- Certain services provided by non-profit organizations
Always check the Ontario government website for the most current list of HST exemptions.
Worked Examples
Example 1: Calculating HST on a $100 Purchase
Original Price: $100
HST Rate: 13%
HST Amount: $100 × 0.13 = $13
Total Price: $100 + $13 = $113
Example 2: Calculating HST on a $50 Purchase
Original Price: $50
HST Rate: 13%
HST Amount: $50 × 0.13 = $6.50
Total Price: $50 + $6.50 = $56.50
FAQ
- What is the current HST rate in Ontario?
- The current HST rate in Ontario is 13%. This combines the provincial sales tax and the federal GST.
- Are there any items exempt from HST in Ontario?
- Yes, some items such as prescription drugs, medical devices, and basic groceries may be exempt from HST. Check the Ontario government website for the most current list of exemptions.
- How do I calculate HST on a purchase?
- Multiply the original price of the item by the HST rate (13%) and add this amount to the original price to get the total price including tax.
- Is HST the same as GST?
- No, HST is the combined rate of the provincial sales tax and the federal GST. In Ontario, HST is 13%, which is the sum of the 8% provincial sales tax and the 5% federal GST.
- Where can I find more information about Ontario's sales tax system?
- You can find more information on the Ontario government website.