Ontario's Harmonized Sales Tax (HST) is the most commonly encountered sales tax in Canada's largest province: applying to the daily transactions of 14+ million Ontario residents and businesses. Whether you're a consumer wondering what's taxable, a small business owner setting prices, or an accountant reconciling invoices, understanding Ontario's 13% HST rate, what it applies to, and how to calculate it in both directions (adding and removing) is essential practical knowledge. This complete 2026 guide answers every common Ontario HST question with precise numbers and examples.
Ontario HST Quick Reference 2026
HST Rate: 13% | Add: × 1.13 | Remove: ÷ 1.13 | GST Portion: 5% | ON Portion: 8%
Ontario's 13% HST combines the federal 5% GST and the 8% Ontario provincial portion into one combined tax, administered entirely by the CRA. The rate has been 13% since July 1, 2010. To extract just the federal GST from an Ontario total: (Total ÷ 1.13) × 0.05 = GST amount.
Ontario HST: Adding Tax to a Net Price
| Net Price (Before HST) | Ontario HST (13%) | Total (After HST) | GST Portion (5%) | ON Provincial Portion (8%) |
|---|---|---|---|---|
| $10.00 | $1.30 | $11.30 | $0.50 | $0.80 |
| $50.00 | $6.50 | $56.50 | $2.50 | $4.00 |
| $100.00 | $13.00 | $113.00 | $5.00 | $8.00 |
| $250.00 | $32.50 | $282.50 | $12.50 | $20.00 |
| $500.00 | $65.00 | $565.00 | $25.00 | $40.00 |
| $1,000.00 | $130.00 | $1,130.00 | $50.00 | $80.00 |
| $5,000.00 | $650.00 | $5,650.00 | $250.00 | $400.00 |
| $10,000.00 | $1,300.00 | $11,300.00 | $500.00 | $800.00 |
⚠️ Ontario 13% HST = 5% GST + 8% provincial portion. The federal GST portion is exactly 5/13 of the total HST. The Ontario provincial portion is 8/13 of the total HST. Source: Ontario Government — HST and CRA — GST/HST.
Ontario HST: Removing Tax from a Total (Reverse)
| HST-Inclusive Total | Net Price (Total ÷ 1.13) | HST Amount (Total − Net) | GST Portion (Net × 0.05) | ON Portion (Net × 0.08) |
|---|---|---|---|---|
| $56.50 | $50.00 | $6.50 | $2.50 | $4.00 |
| $113.00 | $100.00 | $13.00 | $5.00 | $8.00 |
| $282.50 | $250.00 | $32.50 | $12.50 | $20.00 |
| $565.00 | $500.00 | $65.00 | $25.00 | $40.00 |
| $1,130.00 | $1,000.00 | $130.00 | $50.00 | $80.00 |
| $5,650.00 | $5,000.00 | $650.00 | $250.00 | $400.00 |
| $11,300.00 | $10,000.00 | $1,300.00 | $500.00 | $800.00 |
What Is and Isn't Subject to Ontario HST?
| Category | HST Status | Examples |
|---|---|---|
| Standard taxable | 13% HST | Restaurant meals, clothing, electronics, furniture, legal services, accounting, consulting, professional services, short-term accommodation |
| Zero-rated (0% HST) | 0% (but ITC eligible) | Basic groceries (fresh produce, meat, dairy, bread), most prescription drugs, medical devices, exports |
| Exempt | 0% (no ITC for seller) | Residential rents, most health and dental services, educational services (tuition), financial services, most childcare |
| Reduced rate / Special | Various | New home rebate applies to purchases under $450,000; short-term accommodation special rules |
Ontario New Home HST Rebate
Buyers of new homes in Ontario may qualify for the Ontario New Residential Rental Property Rebate or the New Housing Rebate. Key facts for 2026:
- Federal GST/HST New Housing Rebate: 36% rebate of the 5% GST portion for homes under $350,000 (declining to zero between $350,000–$450,000)
- Ontario New Housing Rebate: 75% rebate of the 8% Ontario portion, up to $24,000 maximum, for homes under $400,000
- Homes over $450,000: only partial rebate (federal) or no rebate (provincial Ontario portion)
- Purpose-built rental properties have separate rebate rules with no purchase price ceiling
Frequently Asked Questions
What is Ontario's HST rate in 2026?
Ontario's HST rate is 13%: comprising 5% federal GST and 8% provincial component, combined into a single Harmonized Sales Tax. The rate has been 13% since Ontario joined the HST system on July 1, 2010, replacing the separate 5% GST and 8% Ontario Retail Sales Tax (RST/PST). The combined rate is administered by the CRA. Ontario businesses file one HST return, not separate GST and provincial returns.
How do I calculate 13% HST in Ontario?
To add HST: multiply the net price by 1.13. Example: $200 net × 1.13 = $226 total. To remove (extract) HST from a total: divide by 1.13. Example: $226 ÷ 1.13 = $200 net; HST = $226 − $200 = $26. The HST fraction of any Ontario total is 13/113 = 11.504%, so you can also calculate: $226 × 0.11504 ≈ $26 HST. Do not multiply the total by 0.13: this gives the wrong (higher) answer because the rate applies to the net, not the gross.
Is food taxable in Ontario?
Basic grocery items for human consumption are zero-rated (0% HST): fresh produce, meat, poultry, seafood, dairy, eggs, bread, cereals, and most unprepared foods. However, restaurant meals, takeout food, candy, snack foods, carbonated drinks, and certain processed foods are taxable at 13%. The line between zero-rated and taxable food in Ontario can be surprisingly complex: hot takeout items from a grocery store deli are taxable; cold prepared foods may be zero-rated. When in doubt, check the CRA food and beverage guide.
Do I pay HST on rent in Ontario?
Residential rent is exempt from Ontario HST: you do not pay HST on monthly rent payments for apartments, houses, or other residential tenancies. Commercial rent (offices, retail space, warehouses) is fully subject to 13% HST. Short-term accommodation (less than one month. Airbnb, hotels) is taxable at 13% HST. Student housing provided by universities as part of an academic program may qualify for the educational exemption. Always verify with the landlord whether the stated rent is HST-inclusive or plus HST for commercial spaces.
How does Ontario's HST differ from BC's sales tax?
Ontario uses a single 13% HST rate collected through one CRA account, with one return filed. BC charges 5% GST and 7% PST separately: two different accounts, two registration processes, two filing obligations. The combined rate in BC is 12% vs Ontario's 13%. Business in Ontario can claim ITCs for the full 13% HST on business purchases; BC businesses can claim ITCs for the 5% GST but generally cannot recover the 7% PST (with limited manufacturing exemptions). This makes HST provinces administratively simpler and less costly for businesses with significant business-use purchases.
Final Thoughts
Ontario's 13% HST is straightforward in rate but nuanced in application: knowing what's taxable, what's exempt, and what's zero-rated is the key to both accurate pricing as a business and smarter purchasing as a consumer. The add-tax and remove-tax formulas are simple once understood: × 1.13 and ÷ 1.13 cover the vast majority of everyday calculations. Use the Reverse HST Calculator for instant bidirectional calculations, and explore our full GST/HST/PST Canada guide to compare Ontario's rate with every other province's sales tax structure.
Sources & Citations: Content verified against official guidelines from the IRS (US), HMRC (UK), and ATO (AU). Information is reviewed for accuracy prior to publication.
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