Tax Calculator Ontario Hst

Ontario's Harmonized Sales Tax (HST) is a consumption tax that applies to most goods and services sold in the province. This calculator helps you determine how much HST you need to pay or collect on transactions in Ontario.

What is HST in Ontario?

The Harmonized Sales Tax (HST) is a single sales tax system that replaced Ontario's previous system of sales tax and value-added tax (VAT). It was introduced in 2009 to simplify the tax system and provide a more efficient way to collect sales taxes.

HST applies to most goods and services sold in Ontario, with some exceptions. The tax is collected by businesses and remitted to the government, who then redistributes it to various levels of government for their services.

HST is different from the Goods and Services Tax (GST) in other provinces. In Ontario, the HST rate is applied to the total price of goods and services, while in other provinces, the GST is applied to the price of goods and services, and the provincial sales tax (PST) is added on top.

How HST Works in Ontario

When you purchase goods or services in Ontario, the seller adds the HST to the price. The total amount you pay includes the HST, which is then remitted to the government. The government then redistributes the HST to various levels of government for their services.

For businesses, HST works differently. When you buy goods or services for your business, you can claim input tax credits (ITCs) for the HST you paid. This reduces the amount of HST you owe to the government.

HST Collection and Remittance

Businesses that are registered for HST must collect it from their customers and remit it to the government. The government then redistributes the HST to various levels of government for their services.

HST Refunds

If you move to Ontario and have paid HST on goods or services in another province, you may be eligible for a refund. The government will calculate the difference between the HST you paid and the HST you should have paid in Ontario.

Current HST Rates in Ontario

The current HST rate in Ontario is 13%. This rate applies to most goods and services sold in the province. However, there are some goods and services that are exempt from HST or have a different tax rate.

Tax Type	Rate	Description
HST	13%	Applies to most goods and services sold in Ontario
Zero-Rated Goods and Services	0%	Goods and services that are exempt from HST
Imported Goods	Varies	Imported goods may be subject to different tax rates depending on their origin

How to Calculate HST

Calculating HST is straightforward. You simply multiply the price of the goods or services by the HST rate. The formula for calculating HST is:

HST = Price × HST Rate

For example, if you purchase a product that costs $100 and the HST rate is 13%, the HST you pay is:

HST = $100 × 0.13 = $13

The total amount you pay, including HST, is $113.

Calculating HST for Businesses

For businesses, calculating HST is a bit more complex. You need to consider the input tax credits (ITCs) you can claim for the HST you paid on your business expenses. The formula for calculating the net HST you owe is:

Net HST = (HST Collected) - (HST Paid on Business Expenses)

For example, if your business collected $1,000 in HST and paid $500 in HST on business expenses, the net HST you owe is $500.

HST Exemptions and Exclusions

Not all goods and services are subject to HST in Ontario. There are several exemptions and exclusions that apply to certain goods and services. Some of the most common HST exemptions and exclusions include:

Basic food and beverages
Prescription drugs
Medical services
Education services
Financial services
Real estate services

For a complete list of HST exemptions and exclusions, you can refer to the Ontario government website.

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.

How do I calculate HST?

To calculate HST, multiply the price of the goods or services by the HST rate. For example, if you purchase a product that costs $100 and the HST rate is 13%, the HST you pay is $13.

Are there any goods and services that are exempt from HST?

Yes, there are several goods and services that are exempt from HST in Ontario. Some of the most common HST exemptions and exclusions include basic food and beverages, prescription drugs, medical services, education services, financial services, and real estate services.

How do businesses calculate HST?

Where can I find more information about HST in Ontario?

For more information about HST in Ontario, you can refer to the Ontario government website. The website provides detailed information about HST, including the current HST rate, HST exemptions and exclusions, and how to calculate HST.