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GST in Ontario: Why You Pay 13% HST

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There’s no separate GST to pay in Ontario. The 5% federal tax is folded into the province’s 13% HST, so one charge on the receipt covers both. If you see GST and HST listed together on an Ontario bill, something’s off.

Where did the GST go in Ontario?

It’s inside the HST. The CRA treats 5% of the 13% as the federal part and 8% as the provincial part, and businesses charge the combined rate. Alberta shoppers pay GST alone at 5%. In Ontario, you pay the 13% and that’s the end of it. The CRA’s GST/HST rates by province and territory table lists Ontario at 13% with no PST on top.

This matters when you read old articles or forms. People still say “GST” loosely to mean any federal or combined sales tax. On an Ontario invoice the honest label is HST, and the number to check is 13%. Even the registration number you see on a business receipt is called a GST/HST number, which is why the old name sticks around.

What does it cost on a $1,200 purchase?

Run $1,200 through the GST and HST calculator and Ontario gives $156 of tax, so you pay $1,356. The same $1,200 in Alberta carries $60 of GST. In British Columbia, the GST and PST calculator shows $144, but that tool applies its combined 12% to everything, so a real BC receipt with untaxed items would come in lower.

Where Tax on $1,200 Total
Alberta (GST 5%) $60 $1,260
Ontario (HST 13%) $156 $1,356

The $96 gap is the provincial 8% showing up. Think of a shopper in Windsor eyeing a laptop at that price: the sticker says $1,200, the till says $1,356, and nobody is being sneaky about it. It’s the same 13% from Windsor to Ottawa, and on a big purchase those extra hundreds of bucks are the reason some people price things out before they check out.

What if you sell from Ontario to another province?

Here’s where “GST Ontario” searches usually come from. A business in Ottawa selling to a customer in Edmonton can’t assume 13%. The CRA’s place of supply rules decide where the sale is made, and that sets the rate. Nova Scotia dropped its HST to 14% on 1 April 2025, which shows how often the rate a seller should charge can differ from the one they’re used to.

The CRA has a dedicated page for these rules. It covers more cases than one article can, such as services, digital products and goods you deliver yourself. Read it before you set up an online checkout.

Do you have to register if you sell in Ontario?

Only once your taxable sales pass $30,000 in a calendar quarter or over four quarters in a row. Under that, the CRA calls you a small supplier, and registering is voluntary. Go over in a single quarter and you charge HST on the sale that took you over, then register within 29 days.

When you reverse an invoice, say you have a total and need the tax inside it, divide by 1.13. A $1,356 total gives back $1,200 and $156. The reverse HST calculator shows the split without the arithmetic.

GST and a new home in Ontario

This is where the two parts really separate, because a new home is priced in the hundreds of thousands. On an $800,000 new home the 13% comes to $104,000, made up of $40,000 federal and $64,000 provincial. The CRA’s Ontario new housing rebate takes back 75% of the provincial part, capped at $24,000. Our new home rebate estimate gives $24,000 back and $80,000 left to pay.

Federal relief exists too, including a first-time buyers’ GST rebate on the CRA site, but it has price and date limits. It isn’t counted in that figure, and the way it stacks with Ontario’s own extras depends on the purchase, so the CRA pages are the place to check before a purchase agreement is signed.

Mistakes and limits

Adding 5% to 13% is the classic one, and it turns a $1,200 price into $1,416 on paper when the real total is $1,356. That’s a $60 error before anyone has even paid. Another is treating every item as taxable, when basic groceries are zero-rated at 0% according to the CRA. A third is assuming the calculators know your situation: they work with a single rate on the whole price, which suits a simple purchase and nothing more.

If your income is modest, there’s also a payment tied to the sales tax you pay. The CRA says the GST/HST credit has been renamed the Canada Groceries and Essentials Benefit as of July 2026, and the GST/HST credit calculator on this site covers it.

Sources and independence

Rates, the place of supply rule, registration limits and the Ontario new housing rebate come from the Canada Revenue Agency‘s GST/HST pages, read in September 2026. The dollar examples come from our calculators. This is an independent guide, separate from any government body.

Frequently asked questions

Do I pay GST and HST in Ontario?

No. The federal 5% is part of the 13% HST, so one combined rate applies.

What is the GST portion of Ontario HST?

5% is the federal part and 8% is the provincial part, according to the CRA.

What rate do I charge a customer in another province?

It depends on the place of supply rules, which decide where the sale is treated as made. Check the CRA page for your case.

Do I need to register for HST in Ontario?

Once your taxable sales pass $30,000 in a quarter or over four quarters, yes. Below that registration is voluntary.

Is there an Ontario rebate on a new home?

Yes, 75% of the provincial part of the HST, up to $24,000. Other rebates may apply.

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