Reverse sales tax in Ontario: find the pre-tax price
Find the pre-tax price from a tax-inclusive total in Ontario by dividing by 1.13.
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 |
Divide, do not subtract
Divide the total by 1.13 to get the pre-tax price. Subtracting 13% from the total removes too much.
Worked example
Here is the calculation with sample figures. Change any number in the Ontario Reverse Sales Tax Calculator to run your own.
| Price incl. tax | CA$162.00 |
| Tax rate (%) | 13% |
| Price | CA$143.36 |
|---|---|
| Tax | CA$18.64 |
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 Reverse 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
- Marginal rate
- The rate applied to the next unit of income. It decides how much of a raise or a deduction you keep.
- Taxable income
- Income left after allowances and deductions, on which the tax rates are applied.
- Zero rate
- A rate of 0% on a taxable supply. Unlike an exemption, the seller can usually still reclaim tax on costs.
- Tax credit
- An amount subtracted directly from the tax bill, worth its full face value.
- Standard rate
- The rate that applies to most goods and services unless a specific reduced rate, zero rate or exemption applies.
Common mistakes to avoid
- Subtracting the percentage from the total.
Run your own numbers. The Ontario Reverse Sales Tax Calculator updates as you type and shows the formula it uses.
Frequently asked questions
How do I remove sales tax in Ontario?
Divide the total by 1.13.
Why is subtracting wrong?
Tax was calculated on the pre-tax amount, not the total.
This article is general information for planning, not tax advice. Rates and rules change; confirm with your tax authority or a qualified adviser.