Ontario Canada HST
What is the Harmonized Sales Tax (HST) Rate?
In Ontario, the HST is generally 15% on the purchase or lease price of goods and services aside from certain exceptions. This 13% is a combination of the federal GST rate of 5% and the regional PST of 8%.
Taxes in Canada are destination-based, meaning the sales tax rate is based, or determined from, the destination location an item is shipped to. This complicates business for retailers who need to have the exact and up-to-date sales tax rate for every shipment they make.
To see a full breakout of Canada sales tax rates by province, city and postal code, use our .csv tax tables.
What is the Ontario use tax?
The Ontario use tax rate, known as self-assessed, is the same as the sales (HST) rate. If you reside in Ontario, use tax is due on any and all transactions where sales tax has not been paid, even out-of-province/territory internet sales.
Who has to pay Ontario sales tax or use tax?
In general, a business must collect and remit all applicable sales taxes if that business sells goods or provides services in Ontario. The presence of an employee or salesperson, delivery by the seller's vehicle, and storage of materials can also create transactions subject to tax. Ontario says that a vendor is required to collect tax if they make sales to another province or territory. Provinces and territories have their own specific requirements for charging sales tax. If you are not sure if you have to collect taxes for Ontario, you can usually get free help by contacting the Government of Ontario. You could also contact a qualified certified public accountant or lawyer who specializes in tax law in Ontario.
Special rules applying to sales and use taxes in Ontario
Shipping is frequently not taxable if stated separately on the invoice.
Finance charges are often exempt from sales tax, when stated separately.
Since legislators can vote to change tax rates at any time, it is very difficult for individuals to keep track of the changes. The population is also rapidly changing, which can cause frequent updates to the postal codes as well as local municipality names, which complicates the job of keeping track of sales tax jurisdictions.