Provincial Tax: Understand how federal and provincial tax rates stack together with our Canadian Provincial Tax Guide.
Use this calculator to find the sales tax on purchases in British Columbia. BC charges 5% GST + 7% PST for a combined 12% total sales tax on most goods and services. Unlike HST provinces, these are two separate taxes with different rules and exemptions.
You can also enter the total amount after tax to reverse-calculate the pre-tax price—useful for accounting, budgeting, or processing returns.
How BC’s two-tax system works
British Columbia uses a dual tax system with both federal and provincial taxes:
| Component | Rate | What it applies to |
|---|---|---|
| GST (federal) | 5% | Most goods and services |
| PST (provincial) | 7% | Most goods, some services |
| Total | 12% | When both apply |
Key difference: PST traditionally applies to tangible goods (things you can touch) while GST applies more broadly to both goods and services. This means some services are exempt from PST but not GST, resulting in only 5% total tax.
The BC HST experiment (2010-2013)
BC briefly adopted 12% HST from July 1, 2010 to March 31, 2013, harmonizing the GST and PST into a single tax. However, the switch was politically controversial because:
- Restaurant meals went from 5% GST to 12% HST (PST didn’t apply to meals before)
- Professional services (legal, accounting, real estate) jumped from 5% to 12%
- Haircuts and personal services increased from 5% to 12%
- Some previously PST-exempt items became taxable
After a citizen-led petition forced a referendum, 55% of BC voters rejected the HST in 2011. BC returned to the GST + PST system on April 1, 2013. It remains the only province to repeal HST after adopting it.
Quick sales tax calculation examples
Here are common purchase amounts with BC’s 12% combined rate:
| Purchase Price | GST (5%) | PST (7%) | Total Tax (12%) | Final Cost |
|---|---|---|---|---|
| $50 | $2.50 | $3.50 | $6.00 | $56.00 |
| $100 | $5.00 | $7.00 | $12.00 | $112.00 |
| $500 | $25.00 | $35.00 | $60.00 | $560.00 |
| $1,000 | $50.00 | $70.00 | $120.00 | $1,120.00 |
| $5,000 | $250.00 | $350.00 | $600.00 | $5,600.00 |
| $25,000 | $1,250.00 | $1,750.00 | $3,000.00 | $28,000.00 |
| $50,000 | $2,500.00 | $3,500.00 | $6,000.00 | $56,000.00 |
Formula: Total = Purchase Price × 1.12
What’s exempt from BC sales tax?
BC has different exemptions for GST and PST:
Zero-rated for GST (0% federal tax):
- Basic groceries (milk, bread, vegetables, meat, eggs)
- Prescription drugs
- Most medical devices
- Agricultural products
PST-exempt items (0% provincial tax):
- All food for human consumption (groceries, restaurant meals, takeout)
- Books, newspapers, magazines
- Children’s clothing and footwear
- Bicycles
- Certain safety equipment
- Residential heating fuels
- Services (legal, accounting, repairs, haircuts, etc.)
Fully exempt (no GST or PST):
- Residential rent (long-term)
- Most health and dental services
- Educational services and tutoring
- Childcare services
- Used residential real estate (resale homes)
BC PST: Special cases and quirks
Restaurant meals in BC: Only 5% GST applies. No PST on food, making dining out cheaper than in HST provinces (13-15%).
Alcohol: Beer and wine purchased from BC Liquor Stores include 5% GST + 10% PST (not 7%). Spirits have different rates. Alcohol sold in restaurants has 5% GST + 10% PST on the liquor component.
Vehicles: BC charges 12% PST on private vehicle sales based on average wholesale value. If you buy a $20,000 used car privately, you’ll pay ~$2,400 PST when registering it.
Used goods: Private sales of most used goods don’t require sellers to charge PST (unless they’re a business). But vehicles are an exception—PST applies when you register the vehicle.
Services: 5% or 12%?
In BC, most services are exempt from PST, so you only pay 5% GST:
| Service Type | GST | PST | Total |
|---|---|---|---|
| Restaurant meal | 5% | 0% | 5% |
| Haircut | 5% | 0% | 5% |
| Legal services | 5% | 0% | 5% |
| Accounting services | 5% | 0% | 5% |
| Car repair labor | 5% | 0% | 5% |
| Home repair labor | 5% | 0% | 5% |
| Dry cleaning | 5% | 0% | 5% |
| Hotel room (short-term) | 5% | 8%* | 13% |
*Hotels charge 8% PST, not 7%. Some cities add a Municipal and Regional District Tax (MRDT) of 2-3%, bringing total tax on accommodation to 15-16%.
BC sales tax vs other provinces
| Province | Tax System | Total Rate | Notes |
|---|---|---|---|
| Alberta, Territories | GST only | 5% | Lowest in Canada |
| Saskatchewan | GST + PST | 11% | — |
| British Columbia | GST + PST | 12% | Services often 5% only |
| Manitoba | GST + PST | 12% | — |
| Ontario | HST | 13% | Single harmonized tax |
| Quebec | GST + QST | 14.975% | — |
| Atlantic provinces | HST | 15% | Highest in Canada |
BC advantage: Because many services are PST-exempt, BC residents effectively pay less than Manitoba (12% on everything) or Ontario (13% HST on everything).
How to calculate PST and GST separately
When both taxes apply:
Step 1: Calculate GST = Price × 0.05
Step 2: Calculate PST = Price × 0.07
Step 3: Total = Price + GST + PST
Example: $100 purchase
- GST: $100 × 0.05 = $5.00
- PST: $100 × 0.07 = $7.00
- Total: $100 + $5 + $7 = $112.00
Quick method: Price × 1.12 = Total
Reverse calculating BC taxes (working backwards)
If you have a total and need to find the pre-tax amount:
Formula: Pre-tax Price = Total ÷ 1.12
Example: You paid $112.00 total including 12% tax. What was the pre-tax price?
- Pre-tax: $112 ÷ 1.12 = $100.00
- GST paid: $100 × 0.05 = $5.00
- PST paid: $100 × 0.07 = $7.00
BC PST for businesses
Businesses selling taxable goods in BC must:
- Register for PST with the BC government if sales exceed thresholds
- Collect 7% PST on taxable goods sold to consumers
- Remit PST to the provincial government (cannot claim credits)
- File PST returns separately from GST/HST returns
Key difference from HST: Businesses cannot claim input tax credits on PST paid. If you buy $10,000 in supplies with $700 PST, you cannot recover that $700. This “tax on tax” was one reason businesses supported HST—it allowed full ITC recovery.
Sales tax on major purchases in BC
Understanding tax impact on large purchases:
| Purchase Type | Cost | GST (5%) | PST (7%) | Total Tax | Final Cost |
|---|---|---|---|---|---|
| New vehicle | $45,000 | $2,250 | $3,150 | $5,400 | $50,400 |
| Furniture | $8,000 | $400 | $560 | $960 | $8,960 |
| Electronics | $3,000 | $150 | $210 | $360 | $3,360 |
| Appliances | $5,000 | $250 | $350 | $600 | $5,600 |
| Home renovation materials | $20,000 | $1,000 | $1,400 | $2,400 | $22,400 |
Note: New homes have complex tax structures. The GST applies but BC offers a PST exemption on new homes (materials are taxable during construction, but the final sale to the owner may be exempt).
Common BC sales tax questions
Do I pay tax on restaurant food in BC?
Only 5% GST. BC does not charge PST on food, making restaurant meals cheaper than in Ontario (13%) or Atlantic Canada (15%).
Is there sales tax on used cars in BC?
Yes. When you register a used vehicle, you pay 12% PST based on the vehicle’s average wholesale value, not the sale price. On a $15,000 private sale, you might pay $1,800 in PST.
Can I avoid PST by buying online?
No. BC requires businesses with Canadian operations or significant sales into BC to charge PST. Even Amazon charges BC PST on eligible items.
What happens if I buy something in Alberta (no PST) and bring it to BC?
If you buy and take possession in Alberta, you generally don’t owe BC PST. However, if you buy in Alberta for delivery to BC, the seller must charge BC PST. Vehicles registered in BC trigger PST regardless of where purchased.
All provinces: Sales tax rate comparison
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