Ontario Sales Tax (HST)
Ontario uses a Harmonized Sales Tax (HST) of 13%.
| Component | Rate |
|---|---|
| Federal GST | 5% |
| Ontario PST | 8% |
| Total HST | 13% |
HST Quick Calculator
| Price Before Tax | HST (13%) | Total Price |
|---|---|---|
| $10.00 | $1.30 | $11.30 |
| $25.00 | $3.25 | $28.25 |
| $50.00 | $6.50 | $56.50 |
| $100.00 | $13.00 | $113.00 |
| $500.00 | $65.00 | $565.00 |
| $1,000.00 | $130.00 | $1,130.00 |
What’s Taxable at 13% HST
- Most retail goods
- Electronics and appliances
- Clothing (adult)
- Restaurant meals
- Alcohol
- Gasoline (plus excise taxes)
- Professional services
- Home renovations
- Vehicle purchases
HST Exemptions (0%)
These items are completely exempt:
| Category | Examples |
|---|---|
| Basic groceries | Milk, bread, vegetables, meat |
| Prescription drugs | Medications with prescription |
| Medical devices | Wheelchairs, hearing aids |
| Health services | Doctor visits, dental care |
| Childcare | Daycare services |
| Residential rent | Monthly apartment rent |
| Used homes | Resale residential property |
Point-of-Sale Rebates (8% Back)
Ontario rebates the 8% provincial portion on:
| Item | Rebate | You Pay |
|---|---|---|
| Children’s clothing under $30 | 8% | 5% GST only |
| Children’s footwear under $30 | 8% | 5% GST only |
| Children’s car seats | 8% | 5% GST only |
| Diapers | 8% | 5% GST only |
| Feminine hygiene products | 8% | 5% GST only |
| Prepared food under $4 | 8% | 5% GST only |
| Print newspapers | 8% | 5% GST only |
HST on Large Purchases
| Purchase | Price | HST | Total |
|---|---|---|---|
| New car ($40,000) | $40,000 | $5,200 | $45,200 |
| Furniture set | $3,000 | $390 | $3,390 |
| New construction home | $600,000 | $78,000* | $678,000 |
| Renovation | $25,000 | $3,250 | $28,250 |
*New home buyers may qualify for HST rebates
New Home HST Rebate
Ontario offers HST rebates on new homes:
| Home Price | Max Ontario Rebate | Max Federal Rebate |
|---|---|---|
| Under $400,000 | Up to $24,000 | Up to $6,300 |
| $400,000-$450,000 | Reduced | Up to $6,300 |
| Over $450,000 | $0 | $0 |
Ontario vs Other Provinces
| Province | Sales Tax | Difference |
|---|---|---|
| Alberta | 5% | 8% less |
| Saskatchewan | 11% | 2% less |
| BC | 12% | 1% less |
| Ontario | 13% | — |
| Quebec | 14.975% | ~2% more |
| Atlantic | 15% | 2% more |
Related Pages
HST History in Ontario
Ontario introduced the HST on July 1, 2010, replacing the separate 8% Provincial Sales Tax (PST) and 5% federal GST. The harmonization was intended to simplify administration and reduce costs for businesses operating across multiple provinces. Unlike the old PST, HST applies to most services in addition to goods — making it broader in scope. Some exemptions that existed under the old PST were eliminated, while new point-of-sale rebates were introduced to protect lower-income families.
HST on Digital Services and Online Shopping
Since July 2021, foreign digital platforms must collect and remit HST on sales to Ontario consumers. This includes streaming services, app stores, online marketplaces, and cloud software.
| Service | Monthly Fee | HST (13%) | Total |
|---|---|---|---|
| Netflix Standard | $17.99 | $2.34 | $20.33 |
| Spotify Premium | $11.99 | $1.56 | $13.55 |
| Amazon Prime | $9.99 | $1.30 | $11.29 |
| Microsoft 365 Personal | $8.33 | $1.08 | $9.41 |
Buying physical goods from foreign sellers (e.g., Amazon US, Etsy US) may or may not include HST depending on the seller’s registration status.
HST on Real Estate
| Transaction Type | HST Treatment |
|---|---|
| New construction home | 13% HST applies; rebate available |
| Resale home | Exempt (no HST) |
| Commercial property sale | Generally HST applies |
| Residential rent | Exempt |
| New condo assignment sale | Generally HST applies |
| Short-term rental (Airbnb) | HST may apply if registered |
New Home HST Rebate Detail
The federal rebate returns 36% of the 5% GST portion (maximum $6,300) on homes priced under $350,000, phasing out to zero at $450,000. Ontario’s rebate returns 75% of the 8% provincial portion (maximum $24,000) on homes under $400,000, with a gradual phase-out to $500,000. Builders often include the rebate directly in the purchase price — confirm with your agreement of purchase and sale.
Business HST in Ontario
Ontario businesses must register to collect and remit HST once annual revenues exceed $30,000. Registered businesses can claim Input Tax Credits (ITCs) on HST paid for business expenses.
| Revenue | Obligation |
|---|---|
| Under $30,000/year | Small supplier exemption; no registration required |
| $30,000 or more | Must register and collect 13% HST |
| Quarterly remittance | For businesses with annual tax liability under $3,000 |
| Monthly remittance | For businesses with annual tax liability over $3,000 |