Canada Reverse HST Calculator

Our Canada Reverse HST Calculator is designed to help you quickly and easily determine the pre-tax amount from a total price that includes HST (Harmonized Sales Tax).

Whether you’re a business owner or an individual, this tool can assist you in breaking down your costs and understanding how much HST was included in a purchase.

What is HST in Canada?

The HST is a value-added tax that applies to the sale of goods and services in certain provinces of Canada. It combines the federal GST (Goods and Services Tax) with the provincial sales tax, streamlining the taxation process in provinces that have adopted it.

Currently, HST is applied in:

• Ontario: 13%
• Nova Scotia: 14%
• Newfoundland and Labrador: 15%
• New Brunswick: 15%
• Prince Edward Island: 15%

How to Use the Reverse HST Calculator

To calculate the pre-tax price from a total that includes HST, follow these simple steps:

1. Select the province: Choose the province where the purchase was made to ensure the correct HST rate is applied.
2. Enter the total price: Enter the amount into “Price including HST” at the bottom. This is your final amount, including HST.
3. Get your price!’: Our calculator will instantly show you the pre-tax amount and the exact HST charged.

Formula for Reverse HST Calculation

The reverse HST calculation uses a simple formula to derive the pre-tax amount:

$$ \text{Pre-tax Price} = \frac{\text{Total Price}}{1 + \text{HST Rate}} $$

For example, if you paid $115 in a province with a 15% HST rate, the pre-tax amount would be calculated as:

$$ \text{Pre-tax Price} = \frac{115}{1 + 0.15} = \frac{115}{1.15} = 100 $$

In this case, $100 is the original price before tax, and $15 is the HST.

Example Calculation

Let’s say you purchased in Ontario, where the HST is 13%. If the total price was $113, here’s how you can calculate the pre-tax price:

• Total Price: $113
• HST Rate: 13%

Using the formula:

$$ \frac{113}{1.13} = 100 $$

So, the pre-tax price is $100, and the HST charged is $13.

Why Use a Reverse HST Calculator?

Our reverse HST calculator helps by:

• Simplifying the calculation process.
• Allowing you to quickly determine the pre-tax cost of a product or service.
• Providing transparency when dealing with financial records or bookkeeping.

Whether you’re handling personal finances, running a business, or managing expenses for accounting purposes, this tool is a simple and effective solution.