Ontario charges the Harmonized Sales Tax (HST) at 13%, combining the 5% federal GST with an 8% provincial component. Ontario harmonized with federal GST in 2010, replacing its former separate Provincial Sales Tax. HST applies to most goods and services, generating substantial provincial revenue. Unlike provinces with separate PST, HST administration is handled federally, simplifying compliance for businesses. Municipalities generally don't pay HST on purchases for municipal purposes but claim rebates. Ontario's HST rate is lower than Atlantic provinces but higher than the base GST in provinces without harmonization. Sales tax policy affects living costs and business operations across Ontario.