Harmonized Sales Tax (2024)

FAQs

How do you calculate HST? ›

Take the total price with tax and divide it by 1 + the sale tax rate. That result equals the original price before tax was applied, meaning the remainder is the HST amount. You can use a sales tax calculator to quickly get the correct amount. Meaning the retail price was $29.99 and the 13% HST is equal to $3.90.

Individuals and businesses needing to look up an HST number or GST number should do so easily by using the Canada Revenue Agency's GST/HST Registry, which is a free service.

GST and HST – The goods and services tax (GST) is a tax that you pay on most goods and services sold or provided in Canada. In New Brunswick, Newfoundland and Labrador, Nova Scotia, Ontario and Prince Edward Island, the GST has been blended with the provincial sales tax and is called the harmonized sales tax (HST).

The Harmonized Sales Tax (HST) consists of a provincial sales tax of 10 per cent and a federal goods and services tax of 5 per cent for a combined rate of 15 per cent.

What do you get? The amount of sales tax you'll pay on this purchase is $2.10. The total amount you will pay for your garden hose is the $29.99 sale price plus the $2.10 sales tax, or $32.09.

Canada's harmonized sales tax (HST) is a consumption tax paid by local consumers and businesses. As the name implies, it “harmonizes” (combines) the nation's federal goods and services tax and various provincial sales taxes.

Currently the most common GST rates on goods in India are 0% or nil rated, 5%, 12%, 18%, and 28%. Two of the lesser common GST rates applicable to goods in India are 0.25% and 3%.

GST, or goods and services tax, is a sales tax which is charged on most goods and services sold in Canada. In many provinces, the GST has been "harmonized" with the provincial sales tax, to become harmonized sales tax, or HST.

How do I register for GST / HST ? Talk with your bank or financial advisors, register at the CRA 's Business Registration Online or call the CRA 's business inquiries line at 1-800-959-5525.

What is the HST indirect tax? ›

The Harmonized Sales Tax (HST) is made up of the federal GST plus a provincial component. The HST applies to supplies made in the Harmonized provinces of Newfoundland and Labrador, New Brunswick, Ontario, Nova Scotia and Prince Edward Island.

There are certain PST exemptions or refunds. Some of these include clothing and footwear, electricity and heating oil, as well as items for farmers, fishers, aquaculturists and silverculturists. Under PST there are no input tax credits for businesses and no tax credits for lower income individuals and families.

In Nova Scotia, the HST rate is 15 per cent – 5 per cent GST combined with a 10 per cent provincial sales tax. The HST operates the same way as the Goods and Services Tax (GST), which is in place across Canada, and is applied to the same types of goods and services.

The tax rates in Prince Edward Island range from 9.65% to 18.75% of income and the combined federal and provincial tax rate is between 24.8% and 51.37%. Prince Edward Island's marginal tax rate increases as your income increases so you pay higher taxes on the level of income that falls into a higher tax bracket.

The HST for Ontario is calculated from Ontario rate (8%) and Canada rate (5%) for a total of 13%.

The current rates are: 5% (GST) in Alberta, British Columbia, Manitoba, Northwest Territories, Nunavut, Quebec, Saskatchewan, and Yukon. 13% (HST) in Ontario. 15% (HST) in New Brunswick, Newfoundland and Labrador, Nova Scotia, and Prince Edward Island.

Taxable income is the amount that the CRA uses to determine how much federal and provincial tax is owed. The taxable income is then multiplied by the tax bracket rate that applies, giving you the federal tax owed. Federal tax owed is then reduced by the total amount of non- refundable tax credits (line 35000).