HST for Ontario small businesses, explained
Ontario businesses charge and remit the 13% Harmonized Sales Tax once they pass the registration threshold.
Ontario uses the Harmonized Sales Tax (HST) at 13%, combining the federal GST and the provincial portion into a single tax and a single return.
When you have to register
You generally must register for HST once your taxable revenue passes the CRA's small-supplier threshold over four consecutive quarters. Many businesses register earlier to claim input tax credits on their purchases.
Input tax credits
Registered businesses claim back the HST they pay on business expenses as input tax credits, so the net you remit is the tax you collected minus the tax you paid. Accurate books are what make sure no credit is missed.
Registration, rate, and filing frequency
HST in Ontario is 13%, combining the 5% federal GST with an 8% provincial component. Whether you have to charge it, and how often you file, follows your revenue:
| Threshold | What it means |
|---|---|
| $30,000 in taxable revenue (over four consecutive quarters) | Registration generally becomes mandatory; below it you are a small supplier and may register voluntarily |
| Up to $1.5M | Annual filing is the default; you may elect to file more often |
| Over $1.5M up to $6M | Quarterly filing |
| Over $6M | Monthly filing |
| $3,000 net tax in a year | Annual filers generally must pay quarterly instalments the following year |
Figures are the published 2026 amounts, verified August 2026. Federal and Ontario thresholds change annually — confirm the current year before relying on them.
Voluntary registration is often the right call
Small suppliers under $30,000 often assume staying unregistered is simpler and cheaper. Sometimes it is. But registering voluntarily lets you claim input tax credits on everything you buy — equipment, software, materials, vehicle costs — and for a business investing in its own setup, those credits can exceed the HST you collect. Businesses that sell mainly to other registered businesses also find HST invisible to their customers, who simply claim it back.
The counter-case is real too: registration means returns, remittances, and a permanent obligation that is awkward to unwind, and if you sell to consumers, adding 13% to your price is a competitive decision. It is a genuine calculation rather than a default. Once registered, the quick method can simplify the return itself for businesses with low input costs, and filing late carries its own penalty formula.
This is general information, not tax advice for your situation. Get started and a Canadian accountant will give you the answer for your business.
Common questions
What is the HST rate in Ontario?
13%, which combines the 5% federal GST with an 8% provincial portion into one return.
Do I have to register for HST right away?
Only once you pass the small-supplier threshold, but registering earlier lets you claim input tax credits on your expenses. Your accountant can advise on timing.
What is the HST rate in Ontario?
13% — the 5% federal GST plus an 8% Ontario component, administered together by CRA. Some goods and services are zero-rated (taxed at 0%, with input tax credits still claimable) and others are exempt (no tax charged and generally no credits available), which is why the treatment of your specific revenue matters more than the headline rate.
When do I have to register for HST in Ontario?
Generally once your taxable revenue passes $30,000 over four consecutive calendar quarters, measured on a rolling basis rather than by fiscal year. Below that you are a small supplier and registration is optional. Exempt revenue generally does not count toward the threshold, which is why businesses with mixed revenue need the split settled first.
Should I register for HST voluntarily?
Often yes if you sell mainly to other businesses or you are investing in equipment and materials, because input tax credits on your purchases can exceed the HST you collect and your business customers simply claim the tax back. It is usually a harder call if you sell to consumers, where 13% affects your price. Registration is also difficult to unwind, so treat it as a decision rather than a formality.