Tipping and sales tax in Ontario
How restaurant tax works in Ontario and how to calculate a tip on the pre-tax amount.
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 |
Tax first, tip on the subtotal
Restaurant meals in Ontario are taxed at the combined rate. Many diners tip 15% to 20% on the pre-tax subtotal.
Worked example
Here is the calculation with sample figures. Change any number in the Ontario Tip and Tax Calculator to run your own.
| Amount | CA$80.00 |
| Tax rate (%) | 13% |
| Tip (%) | 15% |
| Tax | CA$10.40 |
|---|---|
| Tip | CA$12.00 |
| Total | CA$102.40 |
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 Tip and 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
- 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.
- 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.
Common mistakes to avoid
- Tipping on tax without realising it.
Run your own numbers. The Ontario Tip and Tax Calculator updates as you type and shows the formula it uses.
Frequently asked questions
Do you tip on tax in Ontario?
Common practice is to tip on the pre-tax subtotal.
Is restaurant food taxed in Ontario?
Yes, at the combined rate.
This article is general information for planning, not tax advice. Rates and rules change; confirm with your tax authority or a qualified adviser.