Do I pay HST on legal fees in Ontario?

Yes. Legal services are taxable supplies in Ontario, meaning that lawyers (and paralegals providing regulated legal services) charge 13% HST on their fees and disbursements. There is no HST exemption for legal services, regardless of the nature of the legal matter.

If you are a registered business using legal services for commercial purposes, you can claim the HST on those legal fees as an input tax credit on your HST return. For example, if you pay $2,000 plus $260 HST to a corporate lawyer for commercial work, that $260 can be an ITC — effectively making the legal cost HST-neutral for your business.

For individuals paying for personal legal services (a divorce, a real estate purchase, an estate matter), there is no ITC available, and the HST is simply an additional cost. One exception worth noting: legal aid services and services provided under legal aid certificates may not attract HST in the same way. If you believe HST has been charged incorrectly on your invoice, ask your lawyer to clarify.