Tax Calculator Ontario Sales
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Reviewed by Calculator Editorial Team
Ontario's sales tax system is based on the Harmonized Sales Tax (HST) and Provincial Sales Tax (PST). This calculator helps you determine the total sales tax for products sold in Ontario, including both federal and provincial components.
How to Calculate Ontario Sales Tax
The total sales tax in Ontario is calculated by adding the federal Goods and Services Tax (GST) and the provincial HST or PST rates. The formula is:
Total Sales Tax = (Price × GST Rate) + (Price × PST Rate)
Where:
- GST Rate = 5% (federal tax)
- PST Rate = 8% (provincial tax)
For most products, the total sales tax rate is 13% (5% GST + 8% PST). However, some products may be exempt from PST, which would make the total tax rate 5%.
Step-by-Step Calculation
- Determine the pre-tax price of the product or service.
- Calculate the GST amount: Price × 0.05
- Calculate the PST amount: Price × 0.08 (unless exempt)
- Add the GST and PST amounts to get the total sales tax.
- Add the total sales tax to the pre-tax price to get the final amount including tax.
Ontario Sales Tax Rates
Ontario has two main sales tax rates:
| Tax Type | Rate | Applies To |
|---|---|---|
| Goods and Services Tax (GST) | 5% | All goods and services in Canada |
| Provincial Sales Tax (PST) | 8% | Most goods and services in Ontario |
| Harmonized Sales Tax (HST) | 13% | Combined GST and PST for most sales |
The HST is the combined rate of GST and PST, which is what most consumers see on receipts. The total tax rate is 13% for most products, but some items may be exempt from PST.
Tax Exemptions in Ontario
Certain products and services are exempt from PST in Ontario. These include:
- Basic food and groceries
- Prescription drugs
- Medical devices and supplies
- Books and newspapers
- Certain clothing and footwear
- Basic household items
Note: GST still applies to all exempt items. The total tax rate for exempt items is 5% (GST only).
For a complete list of exemptions, refer to the Ontario government website.
Worked Examples
Example 1: Taxable Product
A product costs $100 before tax. Calculate the total sales tax and final price.
GST = $100 × 0.05 = $5.00
PST = $100 × 0.08 = $8.00
Total Sales Tax = $5.00 + $8.00 = $13.00
Final Price = $100 + $13.00 = $113.00
Example 2: Exempt Product
A prescription drug costs $50 before tax. Calculate the total sales tax and final price.
GST = $50 × 0.05 = $2.50
PST = $0 (exempt)
Total Sales Tax = $2.50 + $0 = $2.50
Final Price = $50 + $2.50 = $52.50
Frequently Asked Questions
What is the difference between GST and HST in Ontario?
GST is the federal tax that applies to all goods and services in Canada. HST is the combined rate of GST and PST, which is what most consumers see on receipts in Ontario. The HST rate is 13% (5% GST + 8% PST).
Which products are exempt from PST in Ontario?
Basic food and groceries, prescription drugs, medical devices, books, newspapers, certain clothing, and basic household items are exempt from PST. GST still applies to these items.
How do I calculate the total sales tax for a product?
Multiply the product price by the GST rate (5%) and the PST rate (8% if applicable). Add these amounts to get the total sales tax. Then add the total sales tax to the product price to get the final amount including tax.
Is there a difference between HST and PST?
HST is the combined rate of GST and PST, which is what most consumers see on receipts. PST is the provincial sales tax that is added to the GST to create the HST rate.