Most items have no new tax
Most of the goods and services we buy every day have no new tax. That's because there are many items on which we already paid the previous Ontario provincial sales tax (PST) and the federal goods and services tax (GST) before the new harmonized sales tax (HST) came into effect on July 1, 2010. For many things, such as cable and phone services, new cars and adult clothing, there hasn't been a change. However, since July 1, 2010, instead of paying 13 per cent sales tax to two governments (eight per cent to Ontario and five per cent to the federal government), there is one sales tax – still 13 per cent – collected by the federal government.
No PST before July 1, 2010, no HST now
There are some other items that have never been subject to sales tax, such as basic groceries, municipal transit and prescription drugs. No HST is charged on these items.
Point-of-sale rebate
Other products are eligible for a point-of-sale rebate for the Ontario part (eight per cent) of the HST. This means you will only pay the five per cent federal portion of the HST. These include print newspapers, books (including audio books), diapers, children's clothing and footwear, children's car seats and booster seats, feminine hygiene products, and qualifying prepared food and beverages sold for $4.00 or less.
No new tax for 83 per cent of products and services
In total, about 83 per cent of products and services purchased by consumers have no new tax. Only 17 per cent are new to the HST – items such as personal and professional services (e.g., hairstyling and legal fees) as well as energy costs including home heating fuel and electricity.
