Ontario’s general sales-tax rate is 13% HST: 5% federal GST and an 8% Ontario component, charged as one harmonized tax on a standard taxable sale. The CRA administers GST/HST. Its current GST/HST rate table lists Ontario at 13%; it is not a general 5% GST plus a separate Ontario PST calculation.
That is the quick answer to “what is the HST rate in Ontario?” It does not mean every item is taxed at 13%: a supply may be zero-rated, exempt, or subject to a specific rule. Confirm the nature and place of the supply before invoicing.
Calculate Ontario HST
For a standard taxable Ontario sale:
HST = pre-tax price × 0.13
total = pre-tax price × 1.13
Example: a $150.00 pre-tax service invoice has $19.50 HST and a $169.50 total.
To find the pre-tax price in a tax-included total, divide; do not subtract 13% from the total.
pre-tax price = tax-included total ÷ 1.13
HST = tax-included total − pre-tax price
For example, $500.00 ÷ 1.13 = $442.48 after rounding, leaving $57.52 HST. The CRA notes that calculator estimates can differ by a cent or two because of rounding. For more examples across Canada, see the GST/HST calculator guide.
When an Ontario business charges 13%
The relevant rate depends on where the supply is made, not simply on the seller being located in Ontario. For goods, delivery destination commonly decides the province. For services, the CRA’s general rule usually looks to the recipient’s Canadian address obtained in the ordinary course of business, but specific rules can apply. The CRA place-of-supply rules give the full tests.
An Ontario consultant, for example, should not assume every invoice carries 13% HST merely because the business is in Ontario. Record the customer address and the facts that establish the place of supply. A sale made in a non-participating province may instead have 5% GST, while provincial PST or QST obligations are separate matters.
For sales into Quebec, an out-of-province business may have QST obligations under either the specified or general QST system depending on the facts. Revenu Québec describes separate thresholds and conditions for suppliers outside Quebec in its QST registration guidance. See Quebec GST and QST guidance before treating an Ontario invoice as a Quebec tax determination.
The $30,000 small-supplier threshold
For most businesses, GST/HST registration becomes mandatory when worldwide taxable supplies exceed $30,000 in one calendar quarter or over four consecutive calendar quarters. The measure includes zero-rated supplies and has exclusions such as financial services, sales of capital property, and goodwill from the sale of a business. The CRA’s registration guidance has the full definition and examples.
Timing differs according to how the threshold is crossed:
- One calendar quarter: the business stops being a small supplier on the sale that pushes it above $30,000. HST must be charged on that sale, and the effective registration date is no later than that day.
- Four consecutive quarters: small-supplier status ends at the end of the month following the quarter in which the threshold is exceeded. The effective registration date is no later than the first supply after that date.
The CRA says to register within 29 days of the effective date in either case. Charities and public institutions use both a $250,000 gross-revenue test and a $50,000 taxable-supplies test; other public service bodies generally use the $50,000 taxable-supplies test. Check the CRA page rather than applying the ordinary business threshold to these organizations.
To open a GST/HST account, the CRA directs businesses to Business Registration Online where eligible. If the business does not yet have a Business Number, it can obtain one during account registration. My Business Account is for access to and management of CRA program accounts after the appropriate setup. See how to register for GST/HST for the site workflow.
What an invoice needs for an ITC claim
The invoice information that supports a customer’s input tax credit (ITC) depends on the total sale. The following is the CRA’s current supporting-documentation table, not a claim that every customer will be eligible for an ITC.
| Total paid or payable | Required information for the record |
|---|---|
| Under $100 | Supplier or intermediary name, invoice date (or date tax was paid or became payable), and total amount |
| $100 to $499.99 | The above, plus tax charged or tax-included statement, taxable/exempt status, and supplier GST/HST registration number |
| $500 or more | The above, plus recipient name or authorized representative, payment terms, and a description of each supply |
The source is the CRA’s ITC documentation requirements. A registrant can claim an ITC only to the extent that an expense is used in commercial activities and all CRA conditions are met. See invoice requirements and input tax credits for the next steps.
Ontario point-of-sale rebates and limited RST cases
Ontario has point-of-sale rebates of the 8% provincial part of HST for qualifying items. The official list includes qualifying print newspapers, prepared food and beverages sold for no more than $4 before HST, books, children’s clothing and footwear, children’s car seats and booster seats, and children’s diapers. Each category has conditions; the Ontario point-of-sale rebate guidance is the source to use before configuring a checkout or invoice.
Ontario also retains Retail Sales Tax (RST) in limited situations. A private purchase of a specified vehicle in Ontario from a person who is not a GST/HST registrant can be subject to 13% RST collected at ServiceOntario, unless an exemption applies. For privately purchased automobiles, vans, and trucks with an empty weight of 2,200 kg or less, fair market value is generally the greater of the purchase price and the Canadian Red Book amount. Other specified vehicles follow different valuation rules. Read Ontario’s specified-vehicles RST guidance before relying on a vehicle price or describing RST as a general Ontario sales tax.
Insurance and benefits plans: Ontario also applies 8% RST to premiums under taxable insurance contracts, group insurance, and certain benefits-plan payments. It is not a tax on every insurance premium: the Ministry of Finance lists contracts of automobile insurance for vehicles required to be insured under Ontario’s Compulsory Automobile Insurance Act among the exemptions, alongside other listed exceptions. For home, auto, or employee-benefit coverage, check the policy category and the Ministry’s insurance and benefits-plan guidance before treating an 8% amount as payable.
A practical Ontario invoice check
- Establish the type and place of supply.
- If it is a standard taxable Ontario supply, calculate one 13% HST amount from the pre-tax price.
- Apply any zero-rating, exemption, or point-of-sale rebate only after confirming the precise conditions.
- Use the CRA’s documentation band that matches the sale total.
- Track the small-supplier threshold and registration timing separately from the invoice calculation.
For real property, mixed taxable and exempt sales, sales to non-residents, or a supply that might be subject to a provincial special rule, get fact-specific tax advice before issuing the invoice.