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Last Updated On 02.10.2026
The HST Ontario rate is 13% in 2026. It combines a 5% federal portion with an 8% Ontario provincial portion into one Harmonized Sales Tax. For a taxable purchase of $100 before tax, the HST is $13 and the total price becomes $113.
HST affects consumers, freelancers, retailers, service businesses and companies operating across provincial borders. However, not every product or service receives the same tax treatment.
Some supplies are taxable at 13%, others are zero-rated at 0%, some are exempt, and selected goods receive an Ontario point-of-sale rebate.
Businesses must also understand when registration becomes compulsory, which tax rate applies to customers outside Ontario, how input tax credits work and when returns and payments are due.
What Is HST in Ontario?
Ontario introduced HST on July 1, 2010. It replaced the previous system in which the 5% federal GST and 8% Ontario retail sales tax operated separately on many transactions.
Ontario’s HST remains 13%, consisting of:
| HST Component | Rate |
| Federal portion | 5% |
| Ontario provincial portion | 8% |
| Total HST Ontario rate | 13% |
HST is administered as a single tax. Businesses normally charge one 13% amount instead of separately adding 5% GST and 8% provincial tax.
Ontario does still have Retail Sales Tax in certain specific situations, including some insurance arrangements and private purchases of specified vehicles. It should not be confused with the provincial component of HST.
How Do You Calculate HST in Ontario?
To add Ontario HST to a tax-exclusive amount:
Price × 13% = HST
Then:
Price + HST = Total including HST
Examples include:
| Price Before HST | 13% HST | Total Price |
| $100 | $13 | $113 |
| $1,000 | $130 | $1,130 |
| $10,000 | $1,300 | $11,300 |
To calculate the pre-tax value when the total already includes HST:
HST-inclusive amount ÷ 1.13 = Pre-tax amount
For example, an HST-inclusive price of $113 divided by 1.13 gives a pre-tax value of $100.
How Is HST Different From GST and Provincial Sales Tax?
GST is the federal Goods and Services Tax. Its standard rate is 5%.
HST combines the federal GST with a participating province’s provincial component. Ontario therefore charges 13% HST rather than requiring businesses to charge GST and a general provincial sales tax separately.
Canadian sales tax rates vary by province. As of 2026:
| Province | General Federal or HST Rate |
| Ontario | 13% HST |
| Nova Scotia | 14% HST |
| New Brunswick | 15% HST |
| Newfoundland and Labrador | 15% HST |
| Prince Edward Island | 15% HST |
| Alberta | 5% GST |
| British Columbia | 5% GST plus applicable PST |
| Saskatchewan | 5% GST plus applicable PST |
| Manitoba | 5% GST plus applicable RST |
Businesses trading in more than one province need to understand provincial differences. The treatment of GST in British Columbia, for example, differs from Ontario because British Columbia does not use HST.
Nova Scotia’s HST changed from 15% to 14% on April 1, 2025.
What Is Taxable, Zero-Rated or Exempt From HST in Ontario?
One of the most important distinctions is between taxable, zero-rated, exempt and point-of-sale rebate supplies.
| Tax Treatment | Typical Examples | HST Charged |
| Taxable | Electronics, adult clothing, restaurant meals, hotel accommodation and many professional services | 13% |
| Zero-rated | Basic groceries, many prescription drugs and certain medical products | 0% |
| Exempt | Many healthcare services, childcare services and most long-term residential rent | No HST |
| Ontario point-of-sale rebate | Qualifying books, children’s clothing, children’s footwear and diapers | Provincial 8% portion rebated |
Zero-rated and exempt do not mean the same thing.
A zero-rated supply is technically taxable at a rate of 0%. A registered business making zero-rated supplies may generally claim eligible input tax credits on related business expenses.
An exempt supply has no GST/HST charged, but businesses generally cannot claim input tax credits relating to expenses used to make exempt supplies.
Does Ontario Charge HST on Children’s Clothing and Books?
Qualifying children’s clothing, footwear, diapers, children’s car seats, books, print newspapers and certain other products are not completely exempt from HST.
Ontario provides a point-of-sale rebate of the 8% provincial portion. As a result, qualifying purchases may effectively be subject only to the 5% federal portion.
Ontario also provides the provincial rebate on qualifying prepared food and beverages costing no more than $4.
This distinction is important for retailers because describing these goods simply as “HST exempt” can produce incorrect tax treatment.
Who Needs to Register for HST in Ontario?
Not every small business has to register immediately.
For most businesses, the important threshold is $30,000 in taxable supplies.
A business generally remains a small supplier while its worldwide taxable supplies, including those of associated persons where applicable, do not exceed $30,000 in a single calendar quarter or over four consecutive calendar quarters.
Registration becomes mandatory when the relevant threshold rules are exceeded.
Businesses preparing to operate formally in the province may also need to consider broader requirements when registering a business in Ontario.
What Happens If You Exceed $30,000 in One Quarter?
If taxable supplies exceed $30,000 during a single calendar quarter, the business generally stops being a small supplier on the transaction that causes it to exceed the threshold.
HST may have to be charged from that transaction onward.
What If You Exceed $30,000 Over Several Quarters?
Different timing rules apply when the business exceeds $30,000 across four or fewer consecutive calendar quarters without exceeding it in one individual quarter.
Businesses should monitor cumulative taxable sales instead of checking revenue only once at the end of the year.
Can You Register Voluntarily?
Yes. A small supplier making taxable supplies can generally register voluntarily.
Voluntary registration may allow a business to claim eligible input tax credits. However, it also creates obligations to collect HST, keep appropriate records and file GST/HST returns.
A voluntarily registered business will generally need to remain registered for at least one year unless its commercial activities stop.
Do Freelancers Need to Charge HST?
Freelancers and self-employed professionals generally follow the same small-supplier threshold when making taxable supplies.
Anyone earning self-employment income should distinguish between income-tax obligations and GST/HST obligations. More broadly, tax planning for freelance professionals becomes increasingly important as taxable revenue grows.
Do Rideshare and Taxi Drivers Have the $30,000 Exemption?
No.
Self-employed taxi operators and commercial rideshare drivers generally must register for GST/HST from the time they begin providing taxable passenger transportation services, regardless of whether their revenue reaches $30,000.
How Do Ontario Businesses Charge HST to Customers in Other Provinces?
A business does not automatically charge 13% simply because it is located in Ontario.
The correct GST/HST rate depends on the place of supply.
For example, if goods are delivered to a customer in Ontario and the supply is considered made in Ontario, the rate is generally 13%.
A taxable supply made in another HST province may instead attract that province’s HST rate. A taxable supply made in a non-participating province may be subject to 5% GST, with separate provincial sales tax rules potentially applying.
Businesses selling products online or serving customers nationally should therefore determine where each supply is considered to occur before configuring invoices or checkout systems.
How Do Input Tax Credits Work?
A GST/HST-registered business may be able to recover GST/HST paid or payable on eligible expenses used in commercial activities through input tax credits, commonly called ITCs.
Suppose a business:
- Collects $2,600 in GST/HST from customers
- Has $900 of eligible GST/HST on business expenses
Ignoring other adjustments, its net tax calculation would be:
$2,600 collected – $900 eligible ITCs = $1,700 net tax
The business would generally remit the $1,700 balance.
Proper invoices and supporting records are important because ITCs need adequate documentation.
What Is the Quick Method of Accounting?
Some eligible small businesses can elect to use the Quick Method instead of calculating ITCs on most operating expenses separately.
Eligibility generally includes businesses whose worldwide annual taxable supplies, including qualifying amounts from associates and HST, do not exceed $400,000 under the applicable test.
The business still charges customers the normal HST rate but calculates the amount to remit using an applicable Quick Method remittance rate.
The method is not available to every type of business and does not automatically provide a lower tax cost. Whether it is beneficial depends on the business’s expenses and circumstances.
How Often Do Businesses File HST Returns?
Reporting frequency generally depends on annual taxable supplies.
| Annual Taxable Supplies | Assigned Reporting Period |
| $1.5 million or less | Annual |
| More than $1.5 million up to $6 million | Quarterly |
| More than $6 million | Monthly |
Eligible businesses can sometimes choose to file more frequently than their assigned period.
A registered business must also file a return when it has no sales, no amount owing or no business activity during the reporting period. This is known as a nil return.
What Are the HST Filing Deadlines?
Monthly and quarterly GST/HST returns are generally due one month after the reporting period ends.
Annual filers generally have three months after fiscal year-end to file and pay.
A special timing rule applies to certain individuals with business income who file annually and have a December 31 fiscal year-end. Their payment is generally due April 30, while the return is due June 15.
Businesses should confirm the deadline shown in their tax account because reporting periods and individual circumstances can vary.
Do HST Returns Have to Be Filed Online?
For reporting periods beginning in 2024 or later, electronic filing is mandatory for most GST/HST registrants.
Exceptions apply to certain organisations, including charities and selected listed financial institutions.
A registrant required to file electronically may face a penalty of $100 for the first non-electronic return and $250 for each subsequent return filed incorrectly.
What Happens If an HST Return Is Filed Late?
When a return is filed late and tax is owing, the late-filing penalty is calculated using:
A + (B × C)
Where:
- A is 1% of the amount owing
- B is 25% of A
- C is the number of complete months overdue, up to 12 months
Interest and other penalties may also apply depending on the circumstances.
A late-filing penalty is generally not charged under this formula when the return has no amount owing or results in a refund.
What Should Businesses Check Before Filing?
A simple pre-filing review can reduce avoidable errors:
- Confirm All Taxable Sales Have Been Reported
- Check The Correct Provincial Rate Was Charged
- Separate Zero-Rated And Exempt Supplies
- Confirm Eligible Input Tax Credits
- Keep Supporting Invoices And Receipts
- Check Previous Instalments And Payments
- Include Required Adjustments
- File A Nil Return When Nothing Is Owing
- Confirm The Filing And Payment Deadlines
- Submit The Return Electronically Where Required
What Are Common HST Mistakes?
Common problems include confusing gross business income with the $30,000 taxable-supply threshold, failing to monitor sales across consecutive quarters and charging 13% on every Canadian customer without considering place-of-supply rules.
Businesses can also lose money by failing to claim valid ITCs or create compliance problems by claiming credits without proper documentation.
Other mistakes include treating zero-rated goods as exempt, incorrectly describing children’s clothing as entirely HST-free, missing nil returns and assuming annual filing is unavailable.
What HST Rebates Are Available in Ontario?
Ontario has several targeted HST rebate arrangements.
Ontario Point-of-Sale Rebates
Qualifying items include certain:
- Books
- Children’s Clothing
- Children’s Footwear
- Children’s Diapers
- Children’s Car Seats And Booster Seats
- Print Newspapers
- Prepared Food And Beverages Priced At $4 Or Less
The rebate generally removes the 8% Ontario portion rather than the entire HST.
Ontario Enhanced New Housing Rebate
A temporary Ontario Enhanced New Housing Rebate applies to qualifying homes purchased from a builder between April 1, 2026 and March 31, 2027, as well as qualifying owner-built homes where construction begins during that period.
Together with the regular Ontario new housing rebate, eligible individuals can receive relief of up to $80,000 of the 8% provincial HST portion on qualifying new or substantially renovated homes valued up to $1.85 million.
Eligibility depends on several conditions, including how the home will be used.
First-time buyers may also qualify for separate federal GST relief in eligible situations, so housing transactions should be reviewed carefully before assuming a particular rebate amount.
What Happened During the 2024 to 2025 GST/HST Holiday?
Canada temporarily removed GST/HST from specified qualifying goods and services between December 14, 2024 and February 15, 2025.
The temporary measure covered qualifying items including restaurant meals, certain foods and beverages, children’s clothing and footwear, children’s products, printed books, newspapers, toys and other specified purchases.
The temporary measure ended on February 15, 2025. Businesses therefore resumed normal GST/HST treatment from February 16, 2025. It should not be confused with Ontario’s permanent point-of-sale rebates.
Final Thoughts
Understanding HST Ontario involves more than knowing that the rate is 13%.
Businesses must determine whether registration is required, identify whether sales are taxable, zero-rated or exempt, charge the correct rate based on the place of supply and maintain records that support input tax credits.
For 2026, businesses should pay particular attention to electronic filing requirements, the $30,000 small-supplier threshold, reporting periods and current rebate rules.
Tax treatment can also vary significantly for housing, transportation, cross-province sales and specialised industries, so complex transactions may require professional tax advice.
FAQs About HST Ontario
Do I Charge HST If I Make Less Than $30,000?
Most small suppliers do not have to register if they remain within the applicable $30,000 threshold. They can generally register voluntarily. Exceptions exist, including taxi and commercial rideshare operators.
Is HST Charged on Restaurant Meals in Ontario?
Yes. Restaurant meals are generally taxable at 13% HST in Ontario. The temporary 2024 to 2025 GST/HST holiday temporarily changed the treatment of qualifying restaurant purchases, but that measure has ended.
Is HST Charged on Hotel Rooms in Ontario?
Hotel accommodation is generally subject to 13% HST. Other accommodation-related municipal or regional charges may also apply depending on location.
Is HST Charged on Residential Rent?
Most long-term residential rent is exempt from GST/HST. Commercial rent and short-term accommodation can have different tax treatment.
Do You Pay HST on Groceries?
Basic groceries are generally zero-rated, which means GST/HST applies at 0%. Not every food or beverage qualifies as a basic grocery.
Is Children’s Clothing HST-Free in Ontario?
Not completely under the normal Ontario rules. Qualifying children’s clothing receives a rebate of the 8% provincial portion, leaving the 5% federal portion.
What Is the Difference Between GST and HST?
GST is the 5% federal Goods and Services Tax. HST combines GST with the provincial component in participating provinces. Ontario’s combined rate is 13%.
Do Businesses Have to File an HST Return With No Sales?
Yes. Registered businesses generally need to file a return for every reporting period, including a nil return when there is nothing to report.
How Can You Check a GST/HST Number?
A GST/HST account number can be checked using the federal GST/HST registry. Businesses should verify supplier information when documentation is important for claiming input tax credits.
