How Ontario sales tax works
- Ontario applies a single harmonized sales tax (HST) rate of 13% on most taxable supplies.
- For forward calculations, apply 13% HST to your taxable subtotal to get the final invoice total.
- For tax-included prices, reverse calculation helps separate the HST amount from the final price.
- Invoices should clearly show subtotal, HST rate, HST amount, and final amount due.
- If your business sells in multiple provinces, place-of-supply rules can affect which tax rate applies.