Ontario sales tax formula with examples
The formula for Ontario sales tax at 13%, with a worked example.
Key facts
| Place | Ontario |
|---|---|
| Sales tax | Combined sales tax |
| Standard rate on file | 13% |
| Multiply net price by | 1.13 |
| Tax share of a gross price | 11.5% |
| Currency | CAD |
The formula
Multiply the price by 0.13 to get the tax, or by 1.13 for the total.
Worked example
Here is the calculation with sample figures. Change any number in the Ontario Sales Tax Calculator to run your own.
| Price | CA$250.00 |
| Tax rate (%) | 13% |
| Tax | CA$32.50 |
|---|---|
| Price incl. tax | CA$282.50 |
Quick reference at 13%
Common amounts in Ontario, worked both ways: adding tax to a net price, and extracting it from a price that already includes tax.
| Amount | Tax on net amount | Gross (net + tax) | Net if amount includes tax |
|---|---|---|---|
| CA$10.00 | CA$1.30 | CA$11.30 | CA$8.85 |
| CA$50.00 | CA$6.50 | CA$56.50 | CA$44.25 |
| CA$100.00 | CA$13.00 | CA$113.00 | CA$88.50 |
| CA$250.00 | CA$32.50 | CA$282.50 | CA$221.24 |
| CA$500.00 | CA$65.00 | CA$565.00 | CA$442.48 |
| CA$1,000.00 | CA$130.00 | CA$1,130.00 | CA$884.96 |
| CA$5,000.00 | CA$650.00 | CA$5,650.00 | CA$4,424.78 |
How Ontario compares
Standard rates on file for other provinces and territories. A difference of a few points matters most on high-value purchases and on cross-border sales.
| Place | Rate on file | Compared with 13% |
|---|---|---|
| Northwest Territories | 5% | lower |
| Nova Scotia | 14% | higher |
| Nunavut | 5% | lower |
| Prince Edward Island | 15% | higher |
| Quebec | 14.975% | higher |
| Saskatchewan | 11% | lower |
Using the calculator step by step
- Open the Ontario Sales Tax Calculator.
- Type your figures into the numbered lines. Results update as you type.
- Check the rate field. It starts at 13%; change it if a reduced rate, local surcharge or exemption applies to you.
- Read the result on the receipt panel, and use the formula shown under it if you need to explain the figure to a client or colleague.
Key terms
- Exempt supply
- A sale that falls outside the tax entirely. No tax is charged and input tax usually cannot be reclaimed.
- Withholding
- Tax deducted at source, by an employer or payer, before the money reaches you.
- Reduced rate
- A lower rate that applies to specific categories, often essentials such as food, medicine or books.
- Deduction
- An amount subtracted from taxable income. It saves tax equal to the deduction times your marginal rate.
- Gross amount
- The amount after tax is added, which is usually what a consumer pays.
Common mistakes to avoid
- Subtracting the rate from a total instead of dividing.
Run your own numbers. The Ontario Sales Tax Calculator updates as you type and shows the formula it uses.
Frequently asked questions
How do I calculate Ontario sales tax?
Price times 0.13.
How do I add it in one step?
Price times 1.13.
This article is general information for planning, not tax advice. Rates and rules change; confirm with your tax authority or a qualified adviser.