The HST for Ontario is calculated from Ontario rate (8%) and Canada rate (5%) for a total of 13%.
Amount without sales tax x (HST rate/100) = Amount of HST in Ontario
Amount without sales tax + HST amount = Total amount with sales taxes
100$ x (13/100) = 13$
100$ + 13$ = 113$
HST or Harmonized Sales Tax in Canada is a combination of the federal taxes and provincial taxes levied by the government. It is a replacement for the two types of taxes i.e. GST (Goods and Services Tax) and PST (Provincial Sales Tax) and eliminates the complex nature of the two. It is a sales tax that is applied to most goods and services in a number of Canadian provinces: New Brunswick, Newfoundland and Labrador, Nova Scotia, Ontario, and Prince Edward Island.
This single tax is a consumption tax that is paid by the consumers and the businesses at the point of sale or POS. The tax division of the federal government, Canadian Revenue Agency or CRA mandates the tax. The CRA later allocates the provincial portion of the HST to the respective provincial government.
The tax rate of HST is 15%, except for Ontario, where the tax rate is 13%. There are a few exceptions on which the HST doesn’t apply. These good are either zero-rated or are exempted from being taxed upon. Goods or commodities like groceries, agricultural of fishery goods and books are a few on which there can be no HST. BC, Saskatchewan, Quebec, and Manitoba apply the provincial system in addition to the separate federal sales tax. See the website of the Canada Revenue Agency
A very simple way to calculate HST on the goods and services is by means of a universal HST calculator. It is very simple to use and the calculations are apt. You just need to select the province of Canada and then enter any input in the required field. HST value OR price including HST OR price exclusive HST – the other values will be calculated instantly.
Note: Tax rate for all Canadian remain the same as in 2017.
Regarding the sale of books, only the GST must be taken into consideration in this type of calculation. However, in some provinces, the Harmonized Sales Tax (HST) must be used.
There are some items in Ontario that don’t need sales taxes such as basic groceries, some drugs, child car and more. Visit the ontario HST exemptions website
An error margin of $ 0.01 may appear in reverse calculator of Canada HST, GST and PST sales tax.
Due to rounding of the amount without sales tax, it is possible that the method of reverse calculation charges does not give ($ 0.01 to close) the total of sales tax used in every businesses.