1. What is Ontario HST?

The Harmonized Sales Tax (HST) in Ontario is a combined federal and provincial sales tax applied to most goods and services. The current HST rate in Ontario is 13%, which includes 5% federal GST and 8% provincial PST.

2. How Does the Calculator Work?

The calculator uses the HST calculation formula:

Where:

• \( Price \) — Original price before tax ($)
• \( HST Rate \) — 13% (0.13)
• \( Tax \) — Calculated HST amount ($)
• \( Total \) — Price + Tax ($)

Explanation: The calculator multiplies the original price by 13% to determine the HST amount, then adds this to the original price to get the total amount payable.

3. Importance of HST Calculation

Details: Accurate HST calculation is essential for budgeting, financial planning, business accounting, and ensuring compliance with Ontario tax regulations for both consumers and businesses.

4. Using the Calculator

Tips: Enter the price before tax in Canadian dollars. The price must be a positive number. The calculator will automatically compute the HST amount and total price including tax.

5. Frequently Asked Questions (FAQ)

Q1: What is the current HST rate in Ontario?
A: The current HST rate in Ontario is 13%, consisting of 5% federal GST and 8% provincial PST.

Q2: Are all goods and services subject to HST?
A: Most goods and services are subject to HST, but there are exemptions including basic groceries, prescription drugs, and certain medical devices.

Q3: How is HST different from GST/PST?
A: HST combines the federal GST and provincial PST into a single tax, simplifying administration and compliance for businesses operating in multiple provinces.

Q4: Can businesses claim HST refunds?
A: Yes, registered businesses can claim Input Tax Credits (ITCs) to recover HST paid on business-related purchases and expenses.

Q5: When was HST implemented in Ontario?
A: HST was implemented in Ontario on July 1, 2010, replacing the previous separate GST and PST system.