Sales tax in Ontario: the 13% combined rate explained
How the 13% combined sales tax in Ontario is made up and how to calculate it on any price.
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 |
How Canada layers sales tax
Canada charges a 5% federal GST. Some provinces combine it with their provincial tax into a single harmonized sales tax (HST); others charge a separate provincial sales tax (PST, or QST in Quebec); and some charge GST only. The combined rate on file for Ontario is 13%.
Worked example
Here is the calculation with sample figures. Change any number in the Ontario Sales Tax Calculator to run your own.
| Price | CA$150.00 |
| Tax rate (%) | 13% |
| Tax | CA$19.50 |
|---|---|
| Price incl. tax | CA$169.50 |
What is taxable
Basic groceries, prescription drugs and some medical devices are zero-rated for GST/HST. Provincial taxes have their own exemptions, so the combined rate does not apply to everything.
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
- Standard rate
- The rate that applies to most goods and services unless a specific reduced rate, zero rate or exemption applies.
- Effective rate
- Total tax divided by total income, the average rate you actually pay.
- Net amount
- The amount before tax is added. On an invoice it is the figure the tax is calculated on.
- 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.
Common mistakes to avoid
- Applying the combined rate to zero-rated items.
- Using another province's rate when shipping across provinces.
Run your own numbers. The Ontario Sales Tax Calculator updates as you type and shows the formula it uses.
Frequently asked questions
What is the sales tax rate in Ontario?
The combined rate on file is 13%.
Is GST charged on groceries in Canada?
Basic groceries are generally zero-rated.
This article is general information for planning, not tax advice. Rates and rules change; confirm with your tax authority or a qualified adviser.