Ontario HST is a 13% Harmonized Sales Tax charged on most goods and services sold in the province. That single rate combines a 5% federal Goods and Services Tax with an 8% Ontario provincial portion, collected together by the Canada Revenue Agency and split between the two governments.1Canada Revenue Agency. GST/HST Calculator (and Rates) Some essentials are taxed at 0% or fully exempt, and several rebates and credits return part of the tax to residents and businesses.
How the 13% Rate Is Applied
Even though you see one line on the receipt, two taxes are being collected. The 5% federal share is the same GST that applies across Canada. The 8% provincial share flows to Ontario’s treasury.
The rate you pay depends on where the supply takes place, not where the seller sits. A business in Alberta shipping goods to an Ontario customer charges 13% because Ontario is the place of supply.2Canada Revenue Agency. Charge and Collect the GST/HST An Ontario business selling to a customer in a non-participating province charges only the 5% GST. These place-of-supply rules matter most for businesses selling across provincial lines or delivering services remotely.
What Ontario Taxes at the Full 13%
The default rule is simple. If something is not specifically exempt or zero-rated, it attracts the full 13%. That covers most physical goods you buy in a store or online: electronics, furniture, adult clothing, household goods, and motor vehicles. Professional fees for lawyers, accountants, and consultants are fully taxable. So are concert and sports admissions, gym memberships, and commercial software subscriptions.
Real estate brings its own layer. New residential homes are taxable at 13%, though rebates can offset a significant portion. Commercial leases, hotel rooms, and short-term vacation rentals attract HST on each payment. Utility bills for electricity, natural gas, and internet service carry the tax as well.
Exempt Versus Zero-Rated Items
Two categories of goods and services escape the 13%, and they work differently.
Exempt Supplies
Exempt supplies carry no HST at all, and the seller cannot claim input tax credits on the costs of providing them.3Canada Revenue Agency. General Information for GST/HST Registrants The common examples: long-term residential rent, most health and educational services, financial services such as bank fees and loan interest, and insurance premiums. Child care and most dental services are also exempt. If you rent an apartment, your landlord cannot add HST to the monthly rent. Any HST the provider paid on its own inputs is absorbed and effectively embedded in the price.
Zero-Rated Supplies
Zero-rated supplies are technically taxable at a rate of 0%. The practical difference is that businesses selling them can still claim input tax credits to recover HST paid on business costs.4Canada Revenue Agency. Type of Supply The main zero-rated items are:
- Basic groceries — milk, bread, vegetables, meat, eggs, and other staples not packaged or prepared for immediate consumption
- Prescription drugs dispensed by a pharmacist with a valid prescription
- Certain medical devices, including hearing aids and artificial limbs
- Goods and services exported outside Canada
The grocery line trips people up. A bag of flour is zero-rated. A ready-to-eat sandwich from the deli counter is not. The distinction generally falls between food that needs preparation and food sold ready to eat.
Point-of-Sale Rebates on the Provincial Portion
Ontario automatically rebates the 8% provincial portion on several everyday categories. The seller simply doesn’t charge the provincial share, so you pay only the 5% federal GST at the register.5Government of Ontario. HST: Ontario Point-of-Sale Rebates Qualifying items include:
- Children’s clothing and footwear
- Print books, including audiobooks on physical media
- Children’s car seats and booster seats that meet Transport Canada safety standards
- Feminine hygiene products such as tampons, pads, and menstrual cups
- Qualifying prepared food and beverages sold for $4.00 or less6Canada Revenue Agency. Harmonized Sales Tax for Ontario – Point-of-Sale Rebate on Prepared Food and Beverages
If a seller charges the full 13% by mistake on a qualifying item, you can claim the provincial portion back by filing Form GST189 with the CRA. Keep the receipt — the form requires purchase details. The rebate only covers the 8% provincial share; the 5% federal GST still applies.
Credits That Return HST to Individuals
Two credits help offset HST for people with lower incomes. Both are delivered automatically when you file your income tax return.
Federal GST/HST Credit
The GST/HST credit is a tax-free quarterly payment for individuals and families with low to modest incomes.7Canada Revenue Agency. GST/HST Credit For the July 2025 to June 2026 payment period, the maximum annual amounts are:
- Single individual: $533
- Married or common-law couple: $698
- Each child under 19: $184
Amounts are based on your 2024 tax return and phase out as family net income rises.8Canada Revenue Agency. GST/HST Credit Payments arrive in January, April, July, and October. You can be eligible even with no income during the year, as long as you filed a return.9Canada Revenue Agency. Who Is Eligible – GST/HST Credit
Ontario Sales Tax Credit
Ontario stacks its own credit on top of the federal one. For the July 2026 to June 2027 period, the maximum is $378 per adult and per child in the family.10Canada Revenue Agency. Province of Ontario The credit begins reducing at 4% of adjusted net income above $29,047 for a single person with no children, or above $36,309 for single parents and couples. It is bundled into the Ontario Trillium Benefit alongside the Ontario Energy and Property Tax Credit and the Northern Ontario Energy Credit, so you may see a single combined payment rather than a separate deposit.
HST on New Homes
Buying or building a new home in Ontario means paying 13% HST on the purchase price. On a $500,000 home, that adds $65,000. Rebates soften the impact, and the federal and provincial portions work differently.
The federal new housing rebate covers part of the 5% GST, but only when the home’s fair market value is below $450,000. As value approaches that threshold, the rebate phases out. Ontario’s provincial rebate is more generous: up to $24,000 of the 8% provincial portion, with no fair-market-value cap, as long as you or a close relative intend to live in the home as a primary residence.11Canada Revenue Agency. GST/HST New Housing Rebate
In March 2026, the Ontario government proposed temporary expanded HST relief for new housing as part of the provincial budget. The CRA has acknowledged the proposal but notes that details are pending and legislation has not been finalized. Anyone purchasing a new home in 2026 should check the CRA’s rebate page before closing.
Landlords buying or building new rental units can claim a separate rebate. The standard New Residential Rental Property rebate for the federal portion requires the unit’s fair market value to be under $450,000, but Ontario’s provincial rebate has no such cap.12Canada Revenue Agency. GST/HST New Residential Rental Property Rebate For larger purpose-built rental buildings with at least four private units (each with its own kitchen, bathroom, and living area), an enhanced rebate covers 100% of the federal HST with no value cap, provided construction began after September 13, 2023 and the building will be substantially complete before 2036. Condominiums, single homes, duplexes, and triplexes do not qualify for the enhanced rebate.
If You Run a Business: The $30,000 Threshold
Not every business has to register for HST. The small supplier threshold is $30,000 in worldwide taxable supplies over four consecutive calendar quarters.13Canada Revenue Agency. When to Register for and Start Charging the GST/HST Stay below and you can operate without collecting or remitting HST. Charities and other public service bodies get a higher $50,000 threshold.14Canada Revenue Agency. Small Suppliers
Crossing $30,000 in a single quarter ends small-supplier status immediately, not at the end of the quarter. You must register and start charging HST on the very supply that pushes you over. If you cross over four quarters instead, you have to register before making any further taxable supplies.
Some businesses register voluntarily even when they’re under the threshold. Registration lets you charge HST and, more importantly, claim input tax credits to recover HST paid on business expenses like rent, office supplies, professional fees, and vehicle costs.15Canada Revenue Agency. Input Tax Credits For a new business with significant startup costs, that recovery can outweigh the compliance burden.