The Harmonized Sales tax rate in Ontario, Canada, is 13 percent of the item or service's sales price, as of 2015. Ontario implemented the HST on July 1, 2010 to combine the five percent Goods and Services Tax and the eight percent provincial Retail Sales Tax into one sales tax.
The Ontario Government exempts certain items from the eight percent portion of the HST at the point-of-sale. These items include books, qualifying food and beverages, diapers, feminine hygiene products and children’s clothing and footwear. Because the HST increased the cost of most utilities, services and some goods that were formerly not subject to the eight percent provincial tax, the government offers an HST credit to low-income individuals and families to offset the additional tax.