# Ontario Sales Tax (HST) Guide (2026)

Canonical: https://trykintsugi.com/sales-tax-guides/canada/ontario
Published: June 17, 2026

Ontario's 13% HST bundles the 5% federal GST with an 8% provincial share into one tax. GST/HST registration is required at CAD $30,000.

- **SaaS:** Taxable
- **Digital Goods:** Taxable
- **Groceries:** Zero-rated

## Key Takeaways

Ontario uses the Harmonized Sales Tax (HST), a single 13% rate combining the 5% federal GST with an 8% provincial portion, filed as one return to the CRA. Register for GST/HST once taxable revenue exceeds CAD $30,000 over four consecutive calendar quarters. Basic groceries, prescription drugs, and many medical devices are zero-rated, and certain health and education services are exempt; SaaS and digital products are taxable under HST.

## Taxability Snapshot

## Sales Tax Rates

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.

| Component | Rate | Scope |
| --- | --- | --- |
| Federal GST | 5% | Canada-wide |
| Ontario provincial | 8% | Ontario |
| Combined HST | 13% | Ontario |

#### Registration & nexus threshold

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.

#### Filing frequency & deadlines

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.

#### Exemptions

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.

## Resale & Exemption Certificates

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].

#### Penalties

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.

## Audits & Appeals

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].

#### Sources

- [1] [Canada Revenue Agency — GST/HST rates (Ontario 13%)](https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/gst-hst-businesses/charge-collect-which-rate/calculator.html)

- [2] [Canada Revenue Agency — When to register for and charge GST/HST ($30,000 threshold)](https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/gst-hst-businesses/when-register-charge.html)

- [3] [Canada Revenue Agency — GST/HST for digital economy businesses](https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/gst-hst-businesses/digital-economy.html)

- [4] [Canada Revenue Agency — GST/HST filing and remitting deadlines](https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/gst-hst-businesses/file-gst-hst-return/reporting-requirements-deadlines.html)

- [5] [Canada Revenue Agency — Type of supply (zero-rated groceries, input tax credits)](https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/gst-hst-businesses/charge-collect-type-supply.html)

- [6] [Government of Ontario — HST point-of-sale rebates](https://www.ontario.ca/document/harmonized-sales-tax-hst/hst-ontario-point-sale-rebates)

- [7] [Canada Revenue Agency — File an objection (GST/HST)](https://www.canada.ca/en/revenue-agency/services/about-canada-revenue-agency-cra/complaints-disputes/file-objection-cppei-appeal-minister.html)

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

#### Frequently asked questions

### What is the Ontario sales tax rate in 2026?

Ontario charges 13% HST — the 5% federal GST combined with an 8% provincial portion.

### When do I have to register for GST/HST in Ontario?

Once your taxable revenue exceeds CAD $30,000 over four consecutive calendar quarters. Non-resident digital sellers use the simplified regime at the same threshold.

### Is SaaS taxable in Ontario?

Yes. SaaS and digital products are subject to Ontario's 13% HST.

### Are groceries taxed in Ontario?

No. Basic groceries and prescription drugs are zero-rated, meaning they are taxed at 0%.

### When are Ontario HST returns due?

Monthly and quarterly returns are due one month after the period ends; annual filers generally have three months.

### What is the penalty for late HST in Ontario?

1% of the amount owing plus 25% of that for each full month late, up to 12 months, plus interest.