The Ontario HST tax rate is 13% on most goods and services, made up of a 5% federal portion and an 8% provincial portion that appear as a single line on your receipt.1Canada Revenue Agency. Charge and Collect the GST/HST – Which Rate to Charge Some items qualify for a point-of-sale rebate that drops the effective rate to 5%, others are fully tax-free, and a few categories sit in their own rules depending on the transaction.
How the 13% Is Built
The federal component is the 5% Goods and Services Tax that applies everywhere in Canada, authorized by the federal Excise Tax Act.2Justice Laws Website. Excise Tax Act Ontario stacks an 8% provincial component on top, replacing the old standalone Provincial Sales Tax that existed before harmonization in 2010.
You don’t see the split at the register. The retailer collects 13% and remits it to the Canada Revenue Agency, which passes Ontario’s share back to the province. The distinction only matters in specific cases like point-of-sale rebates, where the 8% provincial portion is waived and the 5% federal portion still applies.
What You Pay the Full 13% On
The default is straightforward. If a good or service doesn’t fall into an exemption or rebate category, it carries 13%. That covers most retail purchases: electronics, furniture, adult clothing, household supplies, and the like.
Professional services are treated the same way. Accounting, legal work, landscaping, and home renovation labour all attract 13%. On a large project quoted before tax, the HST can add a meaningful amount to the final bill.
Digital Subscriptions and Streaming
Since July 2021, foreign digital service providers selling to Canadian consumers have been required to register for GST/HST and charge the rate based on where the customer lives.3Canada Revenue Agency. GST/HST for Digital Economy Businesses – Overview For Ontario residents that means 13% on streaming platforms, cloud storage subscriptions, online courses from foreign providers, and app store purchases. You can see it broken out on a Netflix or Spotify receipt.
Short-Term Rentals
Accommodations booked for less than 30 consecutive days are taxed at the full 13%. That includes hotels, Airbnb stays, and vacation rentals booked through other platforms. Long-term residential leases of one month or more are treated differently and are exempt from HST.
When You Pay Only 5%: Point-of-Sale Rebates
Ontario waives its 8% provincial portion on certain consumer goods automatically at checkout. You still pay the 5% federal GST, but nothing extra. Retailers handle the rebate at the register, so there’s no application to file.4Government of Ontario. HST – Ontario Point-of-Sale Rebates
- Children’s clothing designed for babies, girls up to Canada Standard Size 16, and boys up to Canada Standard Size 20. Hats, gloves, scarves, and hosiery in children’s sizes qualify too. There’s no price threshold; the rebate is based on size, not cost.5Canada Revenue Agency. Point-of-Sale Rebate on Children’s Goods
- Children’s footwear designed for girls and boys up to size 6, or unsized footwear designated small, medium, or large for children.
- Print books, including audiobooks on physical media. E-books and other electronic publications don’t qualify.
- Print newspapers containing news, editorials, or feature stories published on a regular schedule. Magazines, flyers, and digital editions don’t qualify.6Canada Revenue Agency. Harmonized Sales Tax for Ontario – Point-of-Sale Rebate on Newspapers
- Prepared food and beverages priced at $4.00 or less before tax. The threshold hasn’t changed since Ontario adopted the HST in 2010, so fewer items fall under it than once did.
These aren’t tax-free items. The 5% federal GST still applies; Ontario just waives its share.
Zero-Rated: No Tax at All
Zero-rated goods are taxed at 0%, so neither the federal nor provincial portion applies. The most common categories:
- Basic groceries: milk, bread, fresh fruits and vegetables, raw meat, poultry, fish, eggs, and coffee beans. Snack foods, carbonated drinks, and prepared meals generally are not included.7Canada Revenue Agency. GST/HST Memorandum 4.3 – Basic Groceries
- Prescription drugs dispensed on a practitioner’s prescription, along with insulin and certain other drugs that can be sold without a prescription, under Schedule VI of the Excise Tax Act.8Justice Laws Website. Excise Tax Act – Schedule VI, Part I – Prescription Drugs and Biologicals
- Medical and assistive devices such as wheelchairs, blood-glucose monitors, insulin syringes, hearing aids, prosthetics, and portable wheelchair ramps. Some devices require a physician’s written order to qualify.
- Feminine hygiene products marketed exclusively for that purpose, zero-rated across Canada since July 1, 2015.
Exempt Supplies
Exempt supplies also mean no tax on your bill, but they fall under a separate part of the rules. The main categories most Ontarians run into:
- Resale of used residential homes. When you buy an existing home from another individual, no HST applies. New construction is treated differently, covered below.
- Long-term residential rent. Leases of one month or longer for residential purposes are exempt.9Canada Revenue Agency. GST/HST New Residential Rental Property Rebate
- Most services provided by physicians, dentists, and other regulated health practitioners.
- Tuition and instructional services at universities, public colleges, and vocational schools leading to a professional accreditation or trade certification.10Canada Revenue Agency. Election to Make Exempt Supplies of Educational Services Taxable
- Day-care services and most financial services, including bank fees, insurance premiums, and interest on loans.
HST on Real Estate
Real estate is where the biggest dollar amounts turn on getting the rule right. New residential construction is subject to the full 13% HST. Resales of existing homes between individuals are exempt.
Because HST on a new home can be a large sum, Ontario offers a New Housing Rebate to offset it. A temporary expansion of the rebate runs from April 1, 2026, to March 31, 2027, and is considerably more generous than the standard program:11Ontario Newsroom. Ontario Expanding HST Rebate to Lower the Cost of New Homes in Partnership With the Federal Government
- For new homes valued up to $1.5 million, a maximum rebate of $130,000, which effectively removes the full 13% HST on homes valued up to $1 million.
- For new homes between $1.5 million and $1.85 million, the rebate decreases proportionally from $130,000 down to $24,000.
- For new homes at $1.85 million and above, a maximum rebate of $24,000.
To qualify, the buyer must be purchasing the home as their primary residence or as a residential rental property. The same rebate structure applies to the New Residential Rental Property Rebate during this window. Outside of the 2026–2027 expansion, the standard rebate amounts are considerably lower.
Credits That Offset HST for Individuals
Two ongoing programs return some of the tax to lower- and middle-income Ontarians.
The GST/HST credit is a tax-free quarterly payment from the federal government. There’s no separate application; eligibility is determined when you file your annual income tax return.12Canada Revenue Agency. GST/HST Credit For the July 2025 to June 2026 payment year, the maximum annual credit is $533 for a single individual and $698 for a couple, phasing out as adjusted family net income rises.13Canada Revenue Agency. How Much You Can Get – GST/HST Credit Payments arrive quarterly, with 2026 dates typically falling on January 5, April 2, July 3, and October 5. If a payment date lands on a weekend or holiday, funds are issued on the last business day before the 5th.
The Ontario Trillium Benefit 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. The sales tax credit component alone provides up to $378 per adult and per child in the household for 2026. For single individuals without children, the credit begins to phase out at an adjusted net income of $29,047; for couples and single parents, it starts phasing out at $36,309.14Canada Revenue Agency. Province of Ontario OTB payments are usually divided into 12 monthly instalments. If your annual entitlement is $360 or less, it’s paid as a single lump sum instead.15Canada Revenue Agency. Ontario Trillium Benefit Questions and Answers