Ontario's Harmonized Sales Tax Is Here
Ontario residents will have a tax change starting on July 1, 2010. That's when the 5% GST and 8% PST will be combined into the new 13% HST, the Harmonized Sales Tax. This is a big change designed to help make Ontario more attractive to businesses. The change also includes certain income tax cuts, credits and other benefits that may affect you. For instance:
- Families earning under $160,000 will receive three tax-free payments totaling $1,000
- The HST will not be charged on basic groceries, prescription drugs or child care
- Point-of-sale rebates will be introduced for children's clothing, diapers, car seats and books
So will things cost more now in Ontario? Although it's not certain, some purchases which were not previously subject to the 8% PST tax will likely cost more. However, it is expected that 83% of consumer expenses will not see a new tax*. That will likely be the case for heating and air conditioning products and services as well.
*
Click here for more information on the Harmonized Sales Tax from the Ontario Ministry of Revenue.