Ontario Sales Tax (HST) Guide (2026)

Ontario uses the Harmonized Sales Tax (HST), a single 13% tax that combines the 5% federal GST with an 8% provincial portion. The Canada Revenue Agency (CRA) administers it, so businesses file one return rather than separate federal and provincial filings.

Canada uses a registration threshold rather than US-style economic nexus. You must register for GST/HST once taxable revenue exceeds CAD $30,000 over four consecutive calendar quarters [2]. Non-resident businesses selling digital products or services to Ontario customers register under the simplified GST/HST regime at the same CAD $30,000 threshold [3]. Registration steps are in the How to Register section.

The CRA assigns monthly, quarterly, or annual GST/HST filing based on revenue. Monthly and quarterly returns are due one month after the end of the reporting period; annual filers generally have three months. Payment is due with the return.

Basic groceries, prescription drugs, and many medical devices are zero-rated (taxed at 0%), and certain health and education services are exempt. SaaS and digital products are subject to HST in Ontario.

Canada does not use US-style resale certificates. A GST/HST registrant recovers the tax paid on goods bought for resale and other business inputs by claiming input tax credits on its return [5]. Ontario adds point-of-sale rebates that remove the 8% provincial portion on children's clothing and footwear, children's car seats and booster seats, diapers, books, newspapers, and qualifying prepared food and drink of $4 or less [6].

Filing late carries a CRA penalty of 1% of the amount owing plus 25% of that 1% for each full month the return is late, up to 12 months, plus interest on unpaid amounts.

The CRA audits GST/HST in Ontario. To dispute an assessment, file a Notice of Objection (Form GST159) within 90 days of the assessment date; if still unsatisfied, appeal to the Tax Court of Canada [7].

• [1] Canada Revenue Agency — GST/HST rates (Ontario 13%)

• [2] Canada Revenue Agency — When to register for and charge GST/HST ($30,000 threshold)

• [3] Canada Revenue Agency — GST/HST for digital economy businesses

• [4] Canada Revenue Agency — GST/HST filing and remitting deadlines

• [5] Canada Revenue Agency — Type of supply (zero-rated groceries, input tax credits)

• [6] Government of Ontario — HST point-of-sale rebates

• [7] Canada Revenue Agency — File an objection (GST/HST)

Verified July 2026 against Canada Revenue Agency and Government of Ontario guidance.