Updated Checked by the Tax-Services.ca editorial team How we check
Ontario no longer has a general retail sales tax. On 1 July 2010 the 13% HST replaced the old 8% Ontario retail sales tax and the 5% GST on most goods and services. So when you buy something taxable in Ontario today, you pay 13%, and 8 points of that belong to the province.
What happened to the Ontario retail sales tax?
The province folded it into the harmonized tax. Ontario’s HST page says the HST replaced the 5% federal GST and the 8% retail sales tax on most goods and services from 1 July 2010, and that the CRA collects and manages it for the province. Ontario’s finance ministry still keeps a retail sales tax page, which is a clue to the next point: a small piece of the old tax never went away.
Take $100 of taxable goods. Before 2010 you would have paid about $5 GST plus $8 retail sales tax, and since the HST arrived you pay $13 in one line. On $100 the arithmetic is the same either way. What changed is who collects it and how a business files. A $60 pair of boots, for instance, carried $3.00 of GST and $4.80 of retail sales tax before, and carries $7.80 of HST now.
Where does the old tax still show up?
Ontario says retail sales tax remains for certain insurance products and for private purchases of vehicles. That is narrower than it sounds. A private sale is when you buy a car from another person rather than a dealer, and the tax is paid on the vehicle, not added at a till. We didn’t check rates or the exact list of insurance types, so look at the Ontario finance page before you budget for either.
If you run a business, you won’t be charging RST on regular sales. If you’re an individual, the only time you’d meet it is one of those two cases. Say Jordan in Kingston buys a used hatchback from a neighbour: that’s the kind of private deal the tax still reaches, and it’s worth asking the province how it’s handled before you hand over the money.
How does the 13% split?
| Part | Rate | On a $1,000 purchase |
|---|---|---|
| Federal part | 5% | $50 |
| Provincial part | 8% | $80 |
| Total HST | 13% | $130 |
Receipts show one HST line, so you won’t see the split unless you do it yourself. You’d want it for a few reasons, like working out a point-of-sale rebate. Ontario says it offers a rebate on the 8% provincial portion of the HST on specific items at the till, and a separate HST program for First Nations members. The list of items isn’t on the page we read, so check it before you assume something qualifies.
To put the tax on or off a price, the GST and HST calculator takes an amount and a province. It gives $1,130 for $1,000 in Ontario, and the reverse HST calculator takes you back from $1,130 to $1,000.
Is there sales tax on a new home in Ontario?
Yes, and this is where the provincial 8% matters most. The Ontario rebate on new homes is 75% of the provincial part, to a maximum of $24,000. On a $500,000 new home the provincial part is $40,000 and 75% of it is $30,000, so the $24,000 cap bites. There’s also a bigger rebate for agreements or construction starts from 1 April 2026 to 31 March 2027, worth up to $80,000 of the provincial part, depending on the price. One step in that schedule, between $1,500,000 and $1,850,000, is drawn as a straight line in our tool because the formula isn’t confirmed. Try the new housing rebate calculator for a ballpark, then check the CRA before signing.
Mistakes people make with Ontario sales tax
The common one is adding 5% and 8% to the price separately and then taxing the total again. Both parts apply to the same base price. Another is looking for “Ontario PST” on a receipt. There is none.
A third mistake is using an old figure. You’ll still find advice online that quotes the pre-2010 system, and it’s wrong for any purchase today. Also, rates elsewhere are different, so a 13% quote doesn’t carry over if you sell into another province.
Is Ontario’s setup the same as the rest of Canada’s?
Not at all. Alberta charges only the 5% GST, and British Columbia, Saskatchewan and Manitoba keep a separate provincial tax. If you’re comparing, the GST, HST and PST guide puts the systems next to each other.
What this page is based on
The HST rate and its 8% provincial part come from the Government of Ontario’s HST page and the CRA‘s GST/HST rate page. The new home rebate figures are from CRA pages. This site is independent and has no link to any government.
Frequently asked questions
Does Ontario still charge retail sales tax?
Only on certain insurance products and on private purchases of vehicles, according to Ontario. Most sales carry 13% HST.
When did HST replace Ontario's retail sales tax?
On 1 July 2010.
How is the 13% HST split?
5% is the federal part and 8% is the provincial part.
Who collects HST in Ontario?
The Canada Revenue Agency collects and manages it on behalf of the province.
Is there an Ontario rebate on new homes?
Yes. It is 75% of the provincial part, up to $24,000, with a bigger version for some agreements from 1 April 2026.
- GST, HST, PST and QST explained for every province
Which GST, HST, PST or QST applies where you shop or sell in Canada, the 2026 rates for every province, who must register and how to add or remove tax
- Ontario income tax and sales tax in 2026
How Ontario income tax works in 2026: the five brackets, the surtax and health premium, the 13% HST, and the calculators that switch to Ontario