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