1. What is Ontario HST?

The Harmonized Sales Tax (HST) in Ontario combines the federal Goods and Services Tax (GST) with the Provincial Sales Tax (PST) into a single value-added tax. The current rate in Ontario is 13% (5% federal + 8% provincial).

2. How Does the Calculator Work?

The calculator uses the HST formula:

Where:

• Pre-tax Amount — The amount before taxes in Canadian dollars
• 0.13 — The Ontario HST rate (13%)

Explanation: The calculation adds 13% of the pre-tax amount to the original amount to determine the total cost including taxes.

3. Importance of HST Calculation

Details: Accurate HST calculation is essential for businesses to properly charge customers, file tax returns, and maintain compliance with Canadian tax laws.

4. Using the Calculator

Tips: Enter the pre-tax amount in Canadian dollars. The calculator will automatically apply the 13% Ontario HST rate for 2025.

5. Frequently Asked Questions (FAQ)

Q1: Is the HST rate the same across Ontario?
A: Yes, the 13% HST rate applies uniformly throughout Ontario.

Q2: Are there any exemptions to HST?
A: Yes, certain items like basic groceries, prescription drugs, and residential rent are exempt from HST.

Q3: How often does the HST rate change?
A: HST rates rarely change. The current 13% rate has been in effect since July 1, 2010.

Q4: Do I need to include HST in my prices?
A: Businesses can choose to include HST in listed prices (tax-inclusive) or add it at checkout (tax-exclusive).

Q5: Can I claim HST rebates?
A: Some individuals and businesses may qualify for HST rebates depending on their circumstances.