Purchases in Toronto are subject to a 13 percent Harmonized Sales Tax, which combines a 5 percent federal Goods and Services Tax with an 8 percent Ontario provincial component into one charge at the register.1Revenu Québec. HST Rates You see a single 13 percent line on your receipt rather than two separate taxes.2Canada Revenue Agency. Charge and Collect the GST/HST Not every purchase carries the full rate, though. Groceries, prescription medications, children’s clothing, long-term rent, and several other categories are taxed at a lower rate, at zero, or not at all.
What Gets Taxed at the Full 13 Percent
Most goods and services in Toronto carry the full rate. Adult clothing, electronics, furniture, restaurant meals, personal care services like haircuts, gym memberships, and professional fees from lawyers or accountants all attract 13 percent HST. Motor vehicle purchases deserve special attention because the tax adds thousands of dollars to the sticker price. On a $40,000 car, HST alone comes to $5,200.
Since July 2021, digital services from non-resident companies also carry GST/HST. Streaming subscriptions, online gaming platforms, and app store purchases from foreign vendors are all taxable, and the charge shows up automatically on your bill because the federal government requires those businesses to register under a simplified system.
Items Where You Pay Only 5 Percent
Several everyday categories qualify for an automatic point-of-sale rebate of the 8 percent provincial portion. Retailers handle the calculation at the cash register, so you pay only the 5 percent federal GST. The qualifying categories are:3Canada Revenue Agency. GST/HST Rebate – Provincial Point-of-Sale Rebate on Qualifying Items
- Children’s clothing up to girls’ size 16 and boys’ size 20, and shoes with an insole length of 24.25 cm or less. Sports-specific gear like skates or cleats is excluded.
- Children’s diapers (disposable and cloth), diaper inserts, training pants, and car seats or booster seats meeting Canadian Motor Vehicle Safety Standards.
- Printed books and audiobooks that are spoken readings of a printed book. E-books, magazines, colouring books, and catalogues do not qualify.
- Print newspapers published at regular intervals with news, editorials, or feature stories. Flyers and advertising shoppers are excluded.
- Prepared food and beverages priced at $4 or less pre-tax, including heated food, sandwiches, salads, and individual baked goods.4Canada Revenue Agency. Harmonized Sales Tax – Ontario Point-of-Sale Rebate on Prepared Food and Beverages
These rebates are Ontario-specific and only apply when you buy through a retailer collecting Ontario HST.
Items With No Sales Tax
Two separate mechanisms produce a zero tax charge on your receipt: zero-rating and full exemption. As a shopper, the practical result is the same. The difference matters mainly to the businesses supplying these goods and services.
Groceries
Most food and beverages for human consumption are zero-rated under the Excise Tax Act.5Justice Laws Website. Excise Tax Act RSC 1985 c E-15 – Schedule VI, Part III Milk, bread, fresh vegetables, meat, eggs, coffee beans, and most items in the standard grocery aisles qualify. The exclusions are where it gets tricky. Snack foods like chips, candy, granola bars, carbonated drinks, and single-serving ice cream all carry the full 13 percent. So does prepared food sold hot or ready to eat, unless it qualifies for the $4-or-less point-of-sale rebate above. A rough rule: if it needs preparation at home, it is probably zero-rated; if it is ready to eat and costs more than $4, expect tax.
Prescription Drugs and Medical Devices
Prescription medications dispensed by a pharmacist on a doctor’s order are zero-rated, along with certain drugs that require a prescription by law even when a medical practitioner dispenses them directly. Medical devices like hearing aids and artificial limbs are also zero-rated.6Justice Laws Website. Excise Tax Act RSC 1985 c E-15 – Schedule VI, Part II Over-the-counter medications that do not require a prescription are generally taxable at the full rate.
Rent and Resale Homes
Long-term residential rent is exempt when continuous occupancy runs at least one month.7Justice Laws Website. Excise Tax Act RSC 1985 c E-15 – Schedule V, Part I Short-term rentals under a month, including most Airbnb-style stays, are taxable. Resale homes are exempt. Newly constructed homes from a builder carry HST, though rebates can return part of it (see below).
Health and Dental Care
Services provided by medical practitioners, dentists, dental hygienists, optometrists, chiropractors, physiotherapists, psychologists, midwives, and several other regulated health professionals are exempt.8Justice Laws Website. Excise Tax Act RSC 1985 c E-15 – Schedule V, Part II Cosmetic procedures that are not medically necessary are generally taxable.
Tuition
Tuition for courses at universities, public colleges, and vocational schools, where students earn credit toward a diploma or degree, is exempt.9Justice Laws Website. Excise Tax Act RSC 1985 c E-15 – Schedule V, Part III Elementary and secondary schooling provided by a school authority is also exempt. Recreational courses and workshops that do not lead to a recognized credential are typically taxable.
Banking and Financial Services
Most banking and financial transactions are exempt. That covers interest on loans, running a savings or chequing account, transferring money, issuing or processing credit card payments, and underwriting financial instruments.10Justice Laws Website. Excise Tax Act RSC 1985 c E-15 – Section 123 Advisory and consulting services related to financial products can fall outside the exemption and attract the full 13 percent.
Credits and Rebates That Return HST to You
The Quarterly GST/HST Credit
Lower-income residents can receive quarterly payments from the Canada Revenue Agency to offset the sales tax they pay through the year. You do not apply separately. The CRA determines eligibility automatically when you file your income tax return.11Canada Revenue Agency. How to Get the Credit – GST/HST Credit For the July 2025 to June 2026 benefit year, the maximum annual credit reaches $534 for a single person with no children and $698 for a couple with no children, based on the one-time top-up figures reflecting a 50 percent increase to the base amounts.12Canada Revenue Agency. One-Time GST/HST Credit Top-Up Payment The credit phases out as household income rises.
Ontario Trillium Benefit
Toronto residents may also qualify for the Ontario Trillium Benefit, which bundles three provincial credits into one payment: the Ontario energy and property tax credit, the Northern Ontario energy credit, and the Ontario sales tax credit.13Canada Revenue Agency. Province of Ontario You claim these when filing your annual income tax return. The Ontario sales tax credit specifically helps offset the provincial portion of the HST for lower-income households.
New Housing Rebate
Buying a newly built home or doing a major renovation triggers HST on the purchase price, and rebate programs can return a meaningful share. The federal GST new housing rebate covers 36 percent of the federal tax paid, up to $6,300, for homes with a fair market value at or below $350,000. The rebate phases out between $350,000 and $450,000 and disappears entirely at $450,000.14Canada Revenue Agency. GST/HST New Housing Rebate
Ontario adds its own rebate of up to $24,000 on the provincial portion, with no phase-out based on home price. For first-time buyers, a separate federal rebate can return up to $50,000 of the GST paid on new homes valued up to $1 million, phasing out between $1 million and $1.5 million. Given Toronto prices, the Ontario rebate and the first-time buyer rebate are often more relevant than the standard federal rebate, which cuts off well below the city’s average.
Status Card Exemption
Status Indians who hold a valid Certificate of Indian Status card issued under the federal Indian Act can receive an automatic rebate of the 8 percent Ontario portion of the HST on qualifying personal purchases. You present the status card at checkout, and the purchase must be for personal use rather than for resale or business. Bands and band councils buying for official use must provide a letter on band letterhead with their status number.
Not every purchase qualifies. Alcohol, tobacco, most recreational cannabis, gasoline, utilities, dine-in restaurant meals, hotel stays, and real property remain subject to the full 13 percent HST regardless of status.
What About Visitors?
Non-resident visitors to Canada cannot claim a general rebate on HST paid during a trip. The old Visitor Rebate Program was eliminated years ago and has no replacement for personal shopping or hotel stays.15Canada Revenue Agency. Foreign Convention and Tour Incentive Program The remaining program for non-residents is the Foreign Convention and Tour Incentive Program, which provides GST/HST rebates to sponsors, organizers, and non-resident exhibitors at foreign conventions held in Canada. Individual tourists and business travelers absorb the 13 percent as a cost of the visit.