Ontario’s Harmonized Sales Tax (HST) is a single 13% consumption tax that replaced the separate 5% federal Goods and Services Tax (GST) and 8% Ontario Retail Sales Tax (RST) on July 1, 2010. The Canada Revenue Agency (CRA) administers HST collection, remittance, and input tax credits on behalf of Ontario under a federal-provincial tax collection agreement.
The calculator above computes HST on any purchase price. Enter the pre-tax amount to see the tax and total, or enter the tax-included total to back-calculate the base price.
Quick Answer
Ontario HST is 13% of the purchase price before tax. On a $500 purchase, HST is $65.00 and the total is $565.00. Registered businesses collect HST from customers and remit the net amount to CRA after claiming input tax credits (ITCs) for HST paid on eligible business purchases.
How Ontario HST Works
Ontario’s 13% HST consists of a 5% federal component and an 8% provincial component, but both are collected as a single line item. Consumers and unregistered businesses pay 13% with no recourse. GST/HST-registered businesses collect 13% from their customers and claim ITCs for HST paid on inputs, remitting only the difference.
The federal component flows to the Government of Canada. The provincial component flows back to Ontario under the federal-provincial agreement. Ontario receives roughly 8/13ths of total HST revenue collected within the province.
What Is and Is Not Subject to HST
Most goods and services sold in Ontario are taxable at 13%. Key exemptions and zero-rated supplies include:
- Zero-rated (0% HST): Basic groceries (food for human consumption, excluding carbonated drinks, chips, candy, and prepared meals), prescription drugs, most medical devices, international exports
- Exempt: Residential rent, most health-care services, most financial services (interest, dividends, insurance premiums), educational services, child-care services
- Taxable at 13%: Restaurant meals, alcohol, clothing, electronics, automobiles, new housing (subject to the new-housing rebate), professional services, hotel stays
Zero-rated and exempt differ: suppliers of zero-rated goods can claim ITCs on their inputs; suppliers of exempt services cannot.
New Housing Rebate
Buyers of new homes in Ontario may qualify for the Ontario New Housing Rebate, which offsets part of the provincial 8% HST component. As of 2026, the rebate equals 75% of the provincial component paid, up to a maximum rebate of $24,000, available for homes priced up to $400,000. For homes priced between $400,000 and $450,000, the rebate phases out. Homes over $450,000 receive no provincial rebate (though the federal new-housing rebate, capped at $6,300, may still apply for homes under $450,000 purchase price). Builders typically include this rebate in the listed price for new units sold directly to end-users.
Ontario HST Registration
Businesses with taxable annual supplies exceeding $30,000 (cumulative across all associated persons) must register for GST/HST under the Excise Tax Act (ETA), Part IX. Small suppliers below $30,000 may register voluntarily, which allows ITC claims on inputs. Quarterly and annual filing thresholds determine remittance frequency. Taxi and ride-sharing operators must register regardless of revenue.
Worked Example
A freelance graphic designer in Toronto invoices a client $2,000 for design services. HST at 13% = $260. The client pays $2,260. The designer separately paid $520 HST on a new laptop used for work. On the next quarterly HST return, the designer remits: $260 collected minus $520 ITC = ($260) net refund owed by CRA. If the designer’s annual taxable revenue is under $1.5 million, the simplified ITC method may apply.
Reverse Calculation
To extract HST from a tax-included price: divide the total by 1.13, then subtract to find the tax. Example: $452 total. Base = $452 / 1.13 = $399.12. HST = $452 – $399.12 = $52.88. This method appears on restaurant receipts and gas station totals.
Comparison: Ontario HST vs Other Provinces
| Province | Rate | Type | Administered by |
|---|---|---|---|
| Ontario | 13% | HST | CRA |
| Nova Scotia | 15% | HST | CRA |
| New Brunswick | 15% | HST | CRA |
| PEI | 15% | HST | CRA |
| Newfoundland | 15% | HST | CRA |
| British Columbia | 12% | GST+PST | CRA + BC Govt |
| Alberta | 5% | GST only | CRA |
| Quebec | 14.975% | GST+QST | CRA + Revenu Québec |
Edge Cases and Rules
- A supply of real property is generally taxable, but used residential housing resales are exempt (HST applies only to new construction and substantially renovated homes).
- Condominium parking spots and storage units sold with a new unit share the unit’s tax treatment; standalone parking spots are fully taxable.
- Short-term accommodation (under 30 days) is taxable; long-term residential leases are exempt.
- Municipalities, universities, schools, and hospitals (MUSH sector) pay HST but receive a rebate of 57.14% of the federal component and up to 78% of the provincial component, depending on entity type.
- An Ontario resident purchasing a vehicle in a non-HST province still owes the provincial component upon registration with ServiceOntario.
Frequently asked questions
- What is the HST rate in Ontario?
- Ontario's Harmonized Sales Tax rate is 13%, consisting of a 5% federal GST component and an 8% provincial component. It applies to most goods and services sold in Ontario.
- When did Ontario adopt HST?
- Ontario harmonized its provincial Retail Sales Tax with the federal GST on July 1, 2010, replacing two separate taxes with a single 13% HST administered by the Canada Revenue Agency.
- Are groceries exempt from Ontario HST?
- Basic groceries qualify as zero-rated supplies under the Excise Tax Act, meaning they are taxed at 0% HST. This includes most foods for home preparation. Carbonated drinks, chips, candy, and restaurant meals are taxable at 13%.
- How do I calculate HST on a purchase in Ontario?
- Multiply the pre-tax price by 0.13 to get the HST amount. Add the HST to the pre-tax price for the total. Example: $200 x 0.13 = $26 HST; total = $226.
- How do I back-calculate HST from a tax-included price?
- Divide the total by 1.13 to get the pre-tax base price. Subtract the base from the total to get the HST. Example: $339 total: $339 / 1.13 = $300 base; HST = $39.
- Is there an HST rebate for new homes in Ontario?
- Yes. The Ontario New Housing Rebate returns 75% of the provincial HST component (8%), up to a maximum of $24,000, for new homes priced up to $400,000. The rebate phases out between $400,000 and $450,000. A separate federal rebate of up to $6,300 applies for homes under $450,000.
- Do businesses collect and remit HST?
- Yes. Businesses registered for GST/HST under the Excise Tax Act collect 13% HST on taxable sales and remit the net amount to CRA after deducting input tax credits for HST paid on eligible business inputs.
- What is the small supplier threshold for HST registration?
- Businesses with total taxable supplies exceeding $30,000 in a calendar quarter or over the past four consecutive quarters must register for GST/HST. Businesses below this threshold may register voluntarily to claim input tax credits.
- Is residential rent subject to Ontario HST?
- No. Long-term residential rent is an exempt supply under the Excise Tax Act. Landlords do not collect HST on monthly rent and cannot claim ITCs for HST paid on residential rental expenses.
- Does Ontario HST apply to used vehicles?
- Private-sale vehicle transfers between individuals are not subject to HST. Instead, Ontario levies Retail Sales Tax (RST) at 13% on the greater of the declared purchase price or the Canadian Red Book value when the vehicle is registered at ServiceOntario.
- Is HST charged on insurance premiums in Ontario?
- Most insurance products (life, health, property, auto) are exempt financial services under the Excise Tax Act and are not subject to HST. Ontario does levy an 8% provincial insurance premium tax directly, which is separate from HST.