The Ontario HST tax reform is around the corner. HST launches on July 1st. Many goods & services will see no tax change, a few will actually see HST lower sales tax and some will see an HST tax increase.

HST Ontario has put together a list of all the major upcoming tax changes in Ontario. Here is: A Detailed Guide to HST Changes in Ontario

• Domestic Airfare – Any domestic air travel that originates from Ontario will see a tax increase. Airfare in Ontario is presently taxed GST only, after July 1 all flights leaving Ontario will be subject to HST.
• Domestic Rail – Traveling along the rails will cost you more sales tax. Rail fare originating from Ontario will increase to thirteen percent when harmonized sales tax starts in July.

• Domestic Bus – Bus trips, along with train and air that department from Ontario will be subject to the new 13% sales tax.
• Taxi – Sales tax on taxi travel in Ontario is also increasing. After July 1st cab rides in our province will be subject to HST.
• Hotel Accommodation / Camping Grounds – Renting a hotel room Ontario is about to cost you a little more. Hotels, which are currently subject to GST 5% & RST 5%, will be taxed HST after July 1st. Camp grounds will also begin charging the new tax.

• Alcoholic Beverages – Currently taxed at 15% – 17% alcohol is one of the few items getting an HST tax break. While sales tax will be lower on alcohol because of HST, other alcohol fees and taxes will eventually change to encourage better alcohol responsibility. These changes are expected to increase costs or fees, ultimately leading to a higher alcohol tax.
• Cigarettes – Right now cigarettes in Ontario are only taxed GST. After July 1st their sales tax will increase and cigarettes will be subject to HST.
• Other Tobacco – Along with cigarettes all other tobacco purchases will be subject to the new sales tax. This includes chewing tobacco, loose tobacco and cigars.
• Nicotine Cessation Products – All quit smoking aids and nicotine replacement therapy products will be taxed HST. Unfortunately there will be no tax advantage to quitting smoking.

• Internet Access – What you’re doing right now is going to cost you a little extra each month. Today, Internet access in Ontario is taxed only 5% GST. That is going to change. Beginning July 1st, Internet access is subject to HST.
• Landscaping / Lawn Care – Landscaping services in Ontario, which are currently subject to 5% sales tax, will be subject to the entire 13% HST. The new tax will apply to all landscaping and lawn care services.
• Snow Removal Services – This speaks for itself. Snow removal and related services will be subject to HST.
• Service / Maintenance Services – Going forward most home service calls will be taxed HST. The list of HST applicable service and maintenance calls includes plumber, electrician and carpenter services.
• Home Renovations – Home renovations will be subject to HST in Ontario, increasing their sales tax from 5% to 13%. Building materials and lumber are already taxed at 13%.

• Gasoline / Diesel – Both diesel and gasoline are seeing a tax increase in Ontario. Gas, which is currently subject to GST alone, will be subject to the new HST. Diesel will receive the same tax increase.
• Electricity – Electricity is taxed only GST. That is changing to accommodate the new HST tax in Ontario.
• Natural Gas – Natural gas and heating oil used at home, along with electricity, will be subject to the new sales tax in July.

• Vitamins / Natural Health Products – When HST launches in July vitamins and (some) natural health products will go from being taxed 5% to the full 13%.
• Massage Therapy – Sales tax on massage therapy services will increase with HST. Chiropractor services will continue to be tax free in Ontario.

• Automobiles – The private resale of vehicles in Ontario is currently taxed at 8% PST. Although these private sales will not be subject to HST their PST will increase to match it at 13%. The reason behind the tax change is to help maintain fairness in the Ontario used vehicle market. Many argue that auto dealers in Ontario are disadvantaged when it comes to selling used vehicles because of the tax break on private sales. The problem is compounded by curbsidders, which are a type of car dealer that falsely pose as private sellers to avoid GST (among other things).
• Home Purchases – Homes in Ontario purchased for more than $400,000 will be subject to HST. Purchasers will have an opportunity to apply for a new housing rebate of up to 75% of the Ontario portion of HST. The maximum rebate available will be $24,000. If the new home is valued at over $400,000 and purchased as a primary residence it will be eligible for the maximum rebate of $24,000.
• Real Estate Commission – Real estate agents will see an increase to their real estate commissions. Real estate commissions in Ontario will be subject to harmonized sales tax.

• Hockey Rink Rental – The rental fee for renting a hockey rink in Ontario will be subject to HST after July 1st 2010.
• Hall Rentals – The sales tax on renting a hall or banquet will also change to include HST after July 1st.
• Magazine Subscriptions – All Ontario magazine subscriptions are going to be subject to HST sales tax.

• Hair Styling / Hair Cuts – Getting a hair cut? Get one before July 1st because after that you’ll be paying HST for all your hair styling and hair cutting.
• Esthetician Services – Facials, manicures and other esthetician services will soon see a tax change. The tax on these services will increase from 5% sales tax to 13%.
• Dry Cleaning – Starting in July HST will be applied to all dry cleaning services in Ontario.
• Personal Training – Personal training and sport specific training in Ontario will be subject to HST. Currently these services are PST free. Gym memberships are also subject to HST in Ontario.
• Legal Fees – Legal fees in Ontario will see an increase to include HST. Fortunately, legal aid will remain tax free in Ontario Canada.
• Funeral Services – Funeral services in Ontario will be subject to HST after July 1st. Funeral specific purchases such as coffins or urns (when purchased outside of a funeral package) are currently being taxed at 13% with both GST & PST.

• Theatre Tickets – Live theatre with seating of 3,200 or less is currently subject to GST only. In July that will change and tickets to those events will see an increase in tax to include HST.
• Golf Green Fees – The GST only green fee Ontario residents pay when they golf is going to change. Green fee taxes will rise when they become subject to HST.
• Gym Memberships – As of May 1st 2010 any gym membership purchased that carries past July 1 2010 is subject to HST. Gym memberships in Ontario were previous taxed GST only.
• Sports Memberships – The same change in sales tax also applies to sports memberships in Ontario.
• Athletic Lessons – Martial arts, dancing, hockey and other sports lessons will be taxed HST in Ontario. This is an increase of 8% from the current GST only process.

Thank you for reading the most recent HST Ontario guide to tax changes. As an unbiased source of information and news on harmonized sales tax, we feel its important for Ontarians to be informed.

Forward this link and website to your friends and fellow Ontario residents to help keep them informed about tax change in Ontario.

Are you looking for a list of HST exemptions? Check out our Ontario HST exemptions page for a detailed guide to exemptions in Ontario.

For more information on HST in Ontario you can review our list of common HST questions, visit the Ontario Governments “official” HST page at ontario.ca/taxchange or visit any of the many news sites and blogs dedicated to HST across the Internet.

Disclaimer: While our list of HST changes in Ontario is detailed and to our knowledge completely accurate, it only addresses the most common goods and services in Ontario and could contain errors.