Add HST to Amount (Net to Gross)
Remove HST from Amount (Gross to Net)
Base Amount:$0.00
GST Component (5%):$0.00
PST Component (8%):$0.00
Total HST (13%):$0.00
Final Total:$0.00
Understanding the Ontario Harmonized Sales Tax (HST)
In Ontario, the Harmonized Sales Tax (HST) is a consumption tax that combined the federal Goods and Services Tax (GST) and the Provincial Sales Tax (PST) into a single payment. Since July 1, 2010, the Ontario HST rate has been 13%.
This rate is broken down into two distinct components:
Federal Component (GST): 5%
Provincial Component (PST): 8%
How to Calculate HST in Ontario
Calculating the sales tax depends on whether you are adding tax to a net price or extracting tax from a total price.
1. Adding HST to a Net Price
To find the total price including tax, you multiply the base amount by 1.13.
Formula:Net Amount × 1.13 = Total Price
Example: If you buy a service for $100.00:
$100.00 × 0.13 = $13.00 (HST Amount)
$100.00 + $13.00 = $113.00 (Total Price)
2. Removing HST from a Total Price
To find the original net price from a "tax-in" total, you divide the total by 1.13.
Formula:Total Price ÷ 1.13 = Net Amount
Example: If the total price on a receipt is $50.00:
$50.00 ÷ 1.13 = $44.25 (Net Amount)
$50.00 – $44.25 = $5.75 (HST Amount)
Ontario HST Exemptions and Rebates
While the standard rate is 13%, certain items are subject to "Point-of-Sale Rebates," meaning you only pay the 5% GST portion. Common examples include:
Category
Effective Tax Rate
Most Goods and Services
13%
Children's Clothing & Footwear
5% (8% PST rebate)
Books (Print versions)
5% (8% PST rebate)
Basic Groceries (Milk, Bread, etc.)
0% (Exempt)
Prescription Drugs
0% (Exempt)
Filing HST for Ontario Businesses
Businesses in Ontario with annual taxable revenues exceeding $30,000 must register for a GST/HST account with the Canada Revenue Agency (CRA). Once registered, businesses collect HST on their sales but can also claim Input Tax Credits (ITCs) to recover the HST paid on business-related expenses.