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HST in Ontario (13%) – How It Works for Businesses (2026 Guide)

Learn how HST works in Ontario, including the 13% rate, when to charge it, and how to calculate it correctly on invoices.

HST in Ontario (13%) – How It Works for Businesses (2026 Guide)

Last updated: May 2026

HST in Ontario (Quick Answer)

In Ontario, businesses charge 13% HST on most goods and services.

HST combines:

  • 5% federal GST
  • 8% provincial tax

👉 If your customer is in Ontario, you typically charge 13% HST.

What Is HST in Ontario?

HST (Harmonized Sales Tax) is a combined tax that simplifies tax collection by merging federal and provincial taxes into one rate.

Instead of charging GST and a separate provincial tax, you charge one single percentage:

👉 13% total HST

Ontario HST Rate Breakdown

Tax Type Rate
GST (Federal) 5%
Ontario Provincial Tax 8%
Total HST 13%

When Do You Charge HST in Ontario?

You charge HST if:

  • You are registered for GST/HST
  • Your customer is located in Ontario
  • Your goods or services are taxable

👉 Always base tax on your customer’s location, not your own.

Example: HST Calculation

Description Amount
Service $100.00
Subtotal $100.00
HST (13%) $13.00
Total $113.00

👉 Formula:
HST = Subtotal × 0.13

Do You Always Have to Charge HST?

No — only if you are registered.

You typically need to register once your business earns:

👉 $30,000 in revenue over 12 months

Before that, you are considered a small supplier.

Common HST Mistakes

  • Charging HST based on your location instead of the customer’s
  • Forgetting to register after passing $30,000
  • Not clearly showing HST on invoices
  • Using the wrong tax rate

How to Show HST on an Invoice

Your invoice should clearly include:

  • Subtotal (before tax)
  • HST amount (13%)
  • Total (after tax)

👉 This keeps your invoices compliant and easy to understand.

Tools to Calculate HST in Ontario

Use Lunio’s tools to simplify your calculations:

Related Guides

FAQ

What is HST in Ontario?

HST in Ontario is a combined tax of 13%, made up of 5% GST and 8% provincial tax.

Do I charge 13% HST in Ontario?

Yes, if your customer is located in Ontario and you are registered for GST/HST.

Do I charge HST if I live outside Ontario?

Yes — if your customer is in Ontario, you charge Ontario HST.

Final Thoughts

Ontario’s HST system is simple once you understand the basics.

Charge 13%, apply it to your subtotal, and always base it on your customer’s location.

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