If the cost of a cell phone in Alberta was $504 (including the 5% GST), calculate the cost of the same cell phone in Ontario (including the 13% HST in Ontario).

Question

If the cost of a cell phone in Alberta was $504 (including the 5% GST), calculate the cost of the same cell phone in Ontario (including the 13% HST in Ontario).

Answer 1

in Albeta = $504 is the cost after 5% tax

before tax in alberta = 504/1.05 = $480

after tax in Ontario, with a 13% tax = 480(1.13) = $542.40

the difference = $38.40

the difference in tax rates = 8%

.08(480) = $38.40