3.1 AFTER-TAX COST: Pages 60 - 65

TODAY'S AGENDA: We are learning how to estimate and calculate after-tax cost.
1) Read the following information about GST/HST. 
2) Watch the video.
3) Go through the page and complete pages 60, 61, 62, 63, 64, and 65.
The current HARMONIZED SALES TAX (HST) rate in Ontario is 13%.    

What is HST?

The Harmonized Sales Tax (HST) is a consumption tax in Canada. It is used in provinces where both the federal Goods and Services Tax (GST) and the regional Provincial Sales Tax (PST) have been combined into a single value added sales tax.

No GST/HST charged on the supply of the following goods and services:
Some supplies of goods and services are taxable at the rate of 0% (zero-rated). Meaning there is no tax on these supplies. Some common examples of zero-rated supplies of property and services are:
  • basic groceries such as milk, bread, and vegetables;
  • agricultural products such as grain and raw wool;
  • prescription drugs and drug-dispensing fees; and
  • medical devices such as hearing aids and artificial teeth



For more information, see Exempt supplies - List of GST/HST exempt supplies.
You may need to estimate or calculate the after-tax cost of your purchase to ensure you have enough money.
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How do you estimate after-tax cost of a $28.99 backpack?
Step 1: Round the price up to a friendly number. (Numbers that are easily divisible by 10.)
                     $30 
Step 2: Break down the HST rate into two: 10% and 3%. Then calculate the tax charged for each and find the total.
Step 3: Estimated after-tax cost 
               $30 + $3.90 = $33.90
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How do you calculate after-tax cost of a $150 purse?
Method 1: Use a tip calculator (app). Where it says bill, enter the tag price; where it reads tip, enter tax rate.
Tip Calculator Bill:
Tip: %

Method 2: Use a standard calculator. You can find the after-tax cost in 2 ways.

                                                                        $150 purse sold in Ontario (13% tax rate)
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