Canadian Tax and
Financial Information
Ontario HST

Ads keep this website free for you. does not research or endorse any product or service appearing in ads on this site.  Before making a major financial decision you  should consult a qualified professional.

Looking for US tax information?

Need an accounting, tax or financial advisor? Look in our Directory.      Stay Connected with!      Internet Explorer - Use compatibility view for calculators to work properly!

What's New
Personal Tax
Sales Taxes
Free in 30!
Financial Planning
Real Estate
Stocks Bonds etc.
British Columbia
Atlantic Provinces
Federal Budget
Provincial Budgets
Statistics etc.
Site Map
Advertise With Us
Contact Us/About Us
Links & Resources

Sales Taxes ->GST/HST -> ON HST
Ontario Tax -> ON HST
Provincial Sales Tax

Ontario Harmonized Sales Tax (HST)

The 8% Ontario sales tax and the 5% GST were combined into a single 13% value-added sales tax that is federally administered, effective July 1, 2010.

What is Taxable?

Consumers now have to pay 13% HST on all goods and services on which they previously paid 5% GST, except for several items which were previously RST exempt and are not subject to the provincial portion of the HST.  The following are some made-in-Ontario components:

bulletBooks, children's clothing and footwear, diapers, children's car seats and car booster seats, and feminine hygiene products are exempt from the 8% provincial portion of the tax.
bulletPurchasers of newly constructed homes under $400,000 are not be subject to an additional tax burden.  Buyers of new homes valued between $400,000 and $500,000 can claim a proportional rebate.
bulletNew rental housing rebate, similar to the enhanced new housing rebate, for new residential rental properties.
bulletUp to $400 million in one-time sales tax credits were to be provided to help small businesses make changes to point-of-sale and accounting systems.
bulletProvincial portion of the tax rate on transient accommodation, such as hotel rooms, rose from 5% to 8%.  Approximately $40 million a year will be allocated to support destination marketing in Ontario tourism regions once these are established.
bulletAdditional point-of-sale exemptions announced November 12, 2009:
bulletPrint newspapers
bulletQualifying prepared food and beverages that are ready for immediate consumption and are sold for a total price of not more than $4.00
bulletUsed vehicles purchased privately (not from an HST registrant) are still subject to a retail sales tax (RST) of 13% (increased from 8%).
bulletOntario RST continues to apply at 8% on certain types of insurance, including house insurance, group insurance, contributions paid into funded plans or on benefits paid out of unfunded plans as well as payments made into insurance schemes or compensation funds established under an Act of Canada or Ontario.  This is in addition to the Premium Tax on certain insurance premiums.  See Premium Tax on the Revenue Ministry website.

Input Tax Credits

Businesses which are registered to collect GST or HST can claim input tax credits to recover the GST or HST that they have paid, with certain temporary exceptions for large businesses (see below).  The change to HST meant a significant savings and boost in productivity for businesses in Ontario, because:

bulletthey no longer have to pay PST
bulletthey no longer have to prepare PST remittances
bulletthey save on consulting costs - the PST rules are very complicated, and frequently require professional advice in their interpretation, and courts to make the final interpretation
bulletemployees no longer have to spend time trying to find the answers to PST questions
bulletPST audits eliminated

For further information on the HST, see the following:

bulletGST/HST New Housing Rebate
bulletWhat is Taxable, Exempt or Zero-Rated under GST/HST?

Canada Revenue Agency

bulletAll Forms and Publications for GST/HST
bulletNotice 244 - Harmonization of the Ontario Retail Sales Tax with the GST - Questions and Answers on Housing Rebates, Transitional Rules for Housing and Other Real Property Situated in Ontario
bulletGST/HST Information SheetsTransition to the Harmonized Sales Tax:
bulletGI-053 Freight Transportation Services
bulletGI-054 Passenger Transportation Services
bulletGI-055 Transportation Passes
bulletGI-056 Services
bulletGI-057 Memberships
bulletGI-058 Admissions
bulletGI-059 Intangible Personal Property
bulletGI-070 Goods
bulletGST/HST Information Sheets:  Harmonized Sales Tax:
bulletGI-060 Point-of-Sale Rebate on Newspapers
bulletGI-062 Point-of-Sale Rebate on Feminine Hygiene Products
bulletGI-063 Point-of-Sale Rebate on Children's Goods
bulletGI-064 Point-of-Sale Rebate on Prepared Food and Beverages
bulletGI-065 Point-of-Sale Rebate on Books

Ontario Newsroom

bulletReport estimates benefits of Ontario's tax plan
bulletMore Point-Of-Sale Exemptions for Ontario's HST - November 12, 2009


Revised: June 16, 2016




Copyright © 2002 - 2016 Boat Harbour Investments Ltd. All Rights Reserved  See Reproduction of information from

Facebook  | Twitter  |  Google + |  Monthly Newsletter Sign-up  What’s New E-mail Notification RSS News Feed
The information on this site is not intended to be a substitute for professional advice.  Each person's situation differs, and a professional advisor can assist you in using the information on this web site to your best advantage.
Please see our legal disclaimer regarding the use of information on our site, and our Privacy Policy regarding information that may be collected from visitors to our site.