Provincial Tax: Understand how federal and provincial tax rates stack together with our Canadian Provincial Tax Guide.
Use this calculator to find the sales tax on purchases in Ontario. Ontario charges 13% HST (Harmonized Sales Tax) on most goods and services — a single tax that combines the federal and provincial portions into one streamlined rate. Whether you’re budgeting for a major purchase, filing business expenses, or calculating returns, understanding how HST applies is essential for anyone living or doing business in the province.
You can also enter the total amount after tax to reverse-calculate the pre-tax price—useful for returns, accounting, or budgeting.
How Ontario’s HST works
Ontario adopted the Harmonized Sales Tax (HST) on July 1, 2010, replacing the previous 5% GST + 8% PST system. The HST combines both taxes into a single 13% rate:
| Component | Rate |
|---|---|
| Federal portion | 5% |
| Provincial portion | 8% |
| Total HST | 13% |
The HST is administered by the Canada Revenue Agency (CRA) and is charged at the point of sale. Businesses collect HST on taxable supplies and can claim Input Tax Credits (ITCs) on business purchases. If you’re self-employed or run a business, understanding HST is as important as knowing your Ontario tax brackets and income tax obligations.
Quick HST calculation examples
Here are common purchase amounts with Ontario’s 13% HST:
| Purchase Price | HST (13%) | Total Cost |
|---|---|---|
| $50 | $6.50 | $56.50 |
| $100 | $13.00 | $113.00 |
| $500 | $65.00 | $565.00 |
| $1,000 | $130.00 | $1,130.00 |
| $5,000 | $650.00 | $5,650.00 |
| $25,000 | $3,250.00 | $28,250.00 |
| $50,000 | $6,500.00 | $56,500.00 |
Formula: Total = Purchase Price × 1.13
These numbers matter when you’re planning large purchases like furniture, renovations, or a vehicle. On a typical Ontario salary — the average income in Ontario is roughly $54,300 — HST takes a meaningful bite out of discretionary spending.
Before HST: The old GST + PST system
Before 2010, Ontario had a two-tax system:
- 5% GST on most goods and services (collected by federal government)
- 8% PST on most goods only (collected by province)
Some items like restaurant meals were subject to GST but not PST, meaning you’d pay 5% on dining out. Under HST, everything subject to either tax now pays the full 13%.
The harmonization was controversial. Critics argued certain items (like restaurant meals, professional services, and heating fuel) saw tax increases, while supporters noted business savings from simplified tax administration and the ability to claim ITCs on previously PST-only purchases.
What is exempt from HST in Ontario?
The following items are zero-rated (0% HST) or exempt (no HST charged):
Zero-rated items (0% HST):
- Basic groceries (milk, bread, vegetables, meat, eggs, etc.)
- Prescription drugs and dispensing fees
- Most medical devices (wheelchairs, hearing aids, etc.)
- Feminine hygiene products
- Agricultural products
Exempt items (no HST charged):
- Residential rent
- Resale of used residential property (homes/condos)
- Most health and dental services
- Educational services (tuition, music lessons for children under 14)
- Childcare services
- Most financial services (loan interest, investment management fees)
- Legal aid services
Note: Prepared foods, restaurant meals, snacks, soft drinks, and candy are fully taxable at 13% HST.
Knowing what’s exempt helps when budgeting your take-home pay. Groceries are tax-free, but dining out adds 13% on top of your bill — a meaningful difference when you’re managing a household budget.
HST for businesses in Ontario
Businesses registered for HST (required if annual sales exceed $30,000) must:
- Charge 13% HST on taxable supplies sold to customers
- Collect the tax and remit it to the CRA
- Claim Input Tax Credits (ITCs) on business purchases to recover HST paid
- File HST returns monthly, quarterly, or annually depending on sales volume
Example: A consultant charges a client $10,000 for services. They collect $1,300 in HST ($11,300 total). If they paid $2,000 in taxable business expenses including $260 HST, they can claim a $260 ITC. Net HST payable: $1,300 - $260 = $1,040.
How to reverse-calculate HST (work backwards from total)
If you have a receipt showing the total amount paid and need to determine how much HST was included:
Formula: HST Amount = Total ÷ 1.13 × 0.13
Example: You paid $112.99 total. How much was HST?
- Pre-tax price: $112.99 ÷ 1.13 = $100 (rounded)
- HST charged: $100 × 0.13 = $13.00 (rounded)
Or use this simpler formula: HST = Total × (13 ÷ 113)
Ontario HST vs other provinces
Ontario’s 13% HST rate is in the middle range among Canadian provinces. If you’re comparing take-home pay or cost of living across provinces, sales tax differences can add up to hundreds or thousands of dollars per year:
| Province/Territory | Tax System | Total Rate |
|---|---|---|
| Alberta, Yukon, NWT, Nunavut | GST only | 5% |
| Saskatchewan | GST + PST | 11% |
| British Columbia | GST + PST | 12% |
| Manitoba | GST + PST | 12% |
| Ontario | HST | 13% |
| Quebec | GST + QST | 14.975% |
| New Brunswick, PEI, Nova Scotia, Newfoundland | HST | 15% |
On a $50,000 vehicle purchase:
- Alberta resident pays: $52,500 (5% GST)
- Ontario resident pays: $56,500 (13% HST)
- Atlantic resident pays: $57,500 (15% HST)
That’s a $4,000 difference between Ontario and Alberta on a single purchase — worth factoring in if you’re considering a move between provinces.
HST on large purchases in Ontario
Understanding HST impact on major purchases:
| Purchase Type | Cost | HST (13%) | Total |
|---|---|---|---|
| New vehicle | $45,000 | $5,850 | $50,850 |
| Home renovation materials | $20,000 | $2,600 | $22,600 |
| Furniture package | $8,000 | $1,040 | $9,040 |
| Electronics | $3,000 | $390 | $3,390 |
| Appliances | $5,000 | $650 | $5,650 |
Note: New homes have a different structure—builders charge HST, but buyers receive a partial HST rebate (up to $24,000 on the provincial portion) if the home is used as a primary residence. If you’re buying in Ontario, the Ontario land transfer tax is an additional cost on top of HST considerations — use the land transfer tax calculator to estimate the full cost.
Common questions about Ontario HST
Is there HST on used cars in Ontario?
Yes, private sales of used vehicles are subject to 13% HST based on the vehicle’s wholesale value (not the sale price), with a minimum $3,362 in tax. You pay this when registering the vehicle.
Do I pay HST on rent?
No. Long-term residential rent is exempt. However, short-term rentals (under 30 days) like hotels and Airbnb are subject to 13% HST.
Is there HST on gas in Ontario?
Yes. The listed price at the pump already includes federal excise tax, but 13% HST is added to the total including that excise tax. On $1.50/litre gas, roughly 17¢ is HST.
Can I get an HST rebate as a consumer?
Generally no—HST rebates are for businesses (ITCs) and specific cases like new home purchases or diplomatic exemptions. Consumers pay HST with no recovery mechanism. However, lower-income Ontarians receive the Ontario Sales Tax Credit through the Ontario Trillium Benefit as partial compensation.
Related Guides
- Ontario Tax Brackets — provincial and federal income tax rates
- Ontario Salary After Tax — see take-home pay at common salary levels
- Ontario Capital Gains Tax Calculator — calculate tax on investment gains
- Ontario Land Transfer Tax — tax on home purchases
- Ontario Mortgage Payment Calculator — estimate monthly payments
- Cost of Living in Toronto — how far your money goes in Ontario’s largest city
- Ontario Hourly to Salary Calculator — convert wage to annual income
- Average Income in Ontario — provincial income benchmarks
HST rates by province (comparison table)
Sources
- Canada Revenue Agency. “Tax Information for Individuals.” canada.ca/en/revenue-agency
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