Provincial Sales Tax (PST) or Retail Sales Tax (RST)

On July 1, 2010, the Retail Sales Tax (RST) was replaced by the Harmonized Sales Tax (HST) in Ontario. The provincial portion of the HST is eight per cent and the federal portion is five per cent, for a combined rate of 13 per cent.
The RST continues to apply to:

  • Taxable insurance premiums, and
  • Private sales of specified vehicles from a person who is not a GST/HST registrant.

Some parties are still responsible for collecting and remitting RST for sale including:

  • Insurance premiums: Vendors are required to collect and remit the RST with their periodic tax return.
  • Private sales of specified vehicles: Vehicles purchased privately from a person who is not a GST/HST registrant are subject to the RST at a rate of 13 per cent. RST is payable at the time of purchase.