HST Ontário 13%

Ontario HST: harmonized sales tax

The HST (Harmonized Sales Tax) rolls the federal GST (5%) and a provincial portion into one rate that the Canada Revenue Agency collects. In Ontario the HST is 13%, which breaks down as 5% federal plus 8% provincial. So a CAD 100 product comes out to 100 · 1.13 = CAD 113, CAD 13 of which is tax. Over in the Atlantic provinces the rate climbs to 15%: Nova Scotia, Prince Edward Island, Newfoundland and Labrador, and New Brunswick. Harmonizing the two taxes this way avoids the old cascade, where a separate provincial sales tax (PST) got piled on top of GST.

Practical applications

It comes in handy for shops in Ontario and Atlantic Canada, online sellers shipping into HST provinces, companies claiming Input Tax Credits, and shoppers double-checking a receipt. Which province's HST you owe is settled by the place-of-supply rules. For goods that's normally the destination province, and for digital services it's where the customer is.

FAQ

Why is Ontario 13% but Nova Scotia 15%? Each province picks its own provincial component. Ontario went with 8% and the Atlantic provinces went with 10%. The federal GST slice stays at 5% everywhere.

Do I charge HST or my home province's tax? As a rule you charge the HST of the customer's province, following the place-of-supply rule. So a seller in Alberta shipping to Ontario charges 13% HST rather than Alberta's 5% GST.

Can I claim ITCs on HST? Yes. A registered business gets back the HST it paid on business inputs through Input Tax Credits, just like with GST, and only remits the net amount.