Taxes and Tips

Taxes in British Columbia

Important: In British Columbia, tax is NOT included in the prices shown in stores and restaurants. Tax is added at the time of payment.

Tax Types in BC
PST - Provincial Sales Tax

7%

Applied by British Columbia on most goods and services

GST - Goods & Services Tax

5%

Federal tax applied across Canada on most goods and services

Total Tax Rate: In BC, you'll typically pay 12% total tax (7% PST + 5% GST) on most purchases. Some items may be exempt from one or both taxes.

Tax Examples
Item Price PST (7%) GST (5%) Total Tax Final Price
$10.00 $0.70 $0.50 $1.20 $11.20
$25.00 $1.75 $1.25 $3.00 $28.00
$100.00 $7.00 $5.00 $12.00 $112.00
Gratuity (Tipping) in Canada

Gratuity (tipping) is essentially a gift of money, over and above payment due for a service. A "tip" is given to your server at a restaurant, a taxi cab driver, a hair dresser, etc.

A gratuity is not included in your bill. Although tipping is not mandatory, it is a common courtesy in Canada and the USA.

Tipping Guidelines
Standard Service

15-20%

On the total bill before taxes

Poor Service

5-10%

Below average service

Exceptional Service

25%+

Outstanding service

Where to Tip
  • Restaurants: Servers, bartenders 15-20%
  • Taxi/Uber/Lyft: Drivers 10-15%
  • Hair Salon: Stylists, colorists 15-20%
  • Food Delivery: Delivery drivers 10-15%
  • Hotel: Housekeeping, bellhops $2-5 per day/service
Group Dining

Large Groups: With groups of 10 or more in restaurants, tips are usually automatically included in the bill (typically 18-20%). Check your receipt!

Tipping Calculator Example
Restaurant Bill Example:

Food & Drinks: $50.00

Tax (12%): $6.00

Subtotal: $56.00

Tip (18% on pre-tax amount): $50.00 × 0.18 = $9.00

Total to Pay: $65.00

Quick Tax Facts
  • BC Total Tax: 12% (7% PST + 5% GST)
  • Tax Display: Not included in advertised prices
  • Tax Calculation: Added at checkout
  • Some Exemptions: Basic groceries, prescription drugs
Tipping Tips
  • Calculate tip on pre-tax amount
  • Round to nearest dollar for convenience
  • Cash tips are preferred but card tips are common
  • No tip needed at fast food or self-service establishments
  • Check if tip is already included for large groups