British Columbia's sales tax system is unique among Canadian provinces because it explicitly rejected the HST model after a 2011 referendum: returning to a dual GST + PST structure. This means BC businesses and consumers deal with two separate tax systems: the 5% federal GST with its ITC recovery mechanism, and the 7% BC PST with different taxable items, different registration rules, and no ITC recovery for most business purchases. This guide provides everything you need to know about BC sales tax in 2026: rates, what's taxable, registration, and calculation examples.
BC Sales Tax 2026. Key Rates
GST: 5% | PST: 7% | Combined: 12% | Add: ×1.12 | Reverse: ÷1.12
Note: The combined 12% applies only when both taxes apply to the same item. Some items have only GST (no PST); some have only PST (no GST). Never assume both automatically apply: check the PST and GST status independently for each item type.
BC Sales Tax Calculation Table 2026
| Net Price | GST (5%) | PST (7%) | Total Tax | Total Price (Both) |
|---|---|---|---|---|
| $50.00 | $2.50 | $3.50 | $6.00 | $56.00 |
| $100.00 | $5.00 | $7.00 | $12.00 | $112.00 |
| $250.00 | $12.50 | $17.50 | $30.00 | $280.00 |
| $500.00 | $25.00 | $35.00 | $60.00 | $560.00 |
| $1,000.00 | $50.00 | $70.00 | $120.00 | $1,120.00 |
| $5,000.00 | $250.00 | $350.00 | $600.00 | $5,600.00 |
⚠️ Assumes both GST and PST apply to the item. Note that BC PST is calculated on the same base price as GST: neither tax cascades on top of the other. Source: BC Ministry of Finance — PST and CRA — GST/HST.
What Is Subject to BC PST?
BC PST applies to "tangible personal property" and certain services, but has a very different taxable scope from GST:
| Category | GST (5%) | BC PST (7%) | Notes |
|---|---|---|---|
| Consumer goods (furniture, electronics, clothing) | Yes ✅ | Yes ✅ | Both apply — combined 12% |
| Restaurant meals | Yes ✅ | Yes ✅ (food service) | PST applies via food service operator exemption |
| Basic groceries (fresh food) | No ❌ (zero-rated) | No ❌ | Exempt from both |
| Legal and professional services | Yes ✅ | No ❌ (most services exempt from PST) | Only GST applies — 5% total |
| Software (canned/pre-built) | Yes ✅ | Yes ✅ | Both apply at standard rates |
| New vehicles | Yes ✅ | Yes ✅ (7–20% depending on price) | Luxury PST surtax: 10% on $125K–$149,999; 15% on $150K+ |
| Residential rent | No ❌ (exempt) | No ❌ | Exempt from both |
| Commercial rent | Yes ✅ | No ❌ | Only GST applies on commercial leases |
BC PST Registration: Key Differences from GST
BC PST registration is separate from GST and has different rules:
- No revenue threshold: Unlike GST (which has a $30,000 mandatory registration threshold), BC PST registration is required as soon as you begin selling taxable goods or services in BC: regardless of revenue
- No ITC equivalent: BC PST has no input tax credit mechanism: businesses pay PST on their taxable inputs and generally cannot recover it
- Manufacturing exemption: Goods purchased specifically for use in manufacturing a product for sale are exempt from BC PST (to prevent cascading tax on manufactured goods)
- Resale exemption: Goods purchased for resale are exempt from PST: the tax applies only at the point of final consumer sale
Frequently Asked Questions
What is the sales tax rate in BC for 2026?
BC charges two separate taxes: 5% federal GST (Canada-wide) and 7% BC PST (provincial): a combined 12% on most taxable goods and some services. BC rejected the HST model via referendum in 2013 and reverted to separate GST + PST on April 1, 2013. Unlike Ontario's 13% HST (combined into one), BC businesses must register separately for GST with the CRA and for PST with the BC Ministry of Finance, and file two separate returns.
How do I calculate 12% BC sales tax?
To add 12% combined tax: multiply the net price by 1.12 (or by 1.05 for GST only, or 1.07 for PST only). To reverse-calculate (extract tax from a total): divide by 1.12. Example: $560 total → $560 ÷ 1.12 = $500 net; tax = $60 ($25 GST + $35 PST). The split: GST = net × 0.05; PST = net × 0.07. Verify both taxes apply before using the combined formula: some items only attract one of the two taxes.
Do services attract BC PST?
Most services are exempt from BC PST. GST still applies to most services at 5%. Key BC PST exceptions (services that ARE subject to PST): accommodation (hotels/motels/Airbnb), certain software services, vehicle repairs (labour portions included), and some telecommunications services. Professional services (legal, accounting, consulting, financial) are generally PST-exempt: only the 5% GST applies. This is a major difference from Ontario where all services typically attract the full 13% HST.
Do I need to register for BC PST as an online seller?
Yes: if you sell taxable goods to BC customers, you must register for BC PST and collect/remit it on BC sales, regardless of where your business is located. This applies even to businesses outside BC (and outside Canada) selling taxable goods to BC residents. BC implemented a "marketplace facilitator" rule: platforms like Amazon, Etsy, and Shopify may collect and remit BC PST on behalf of sellers in some cases. Check BC's online seller guidance at the BC Ministry of Finance website.
How is the BC luxury vehicle PST surcharge calculated?
For new and used vehicles purchased in BC: standard 7% PST applies on purchase price up to $124,999. On the portion of the price from $125,000–$149,999: 10% PST (instead of 7%). On the portion from $150,000 and above: 15% PST. This "luxury PST surtax" applies only to passenger vehicles, not commercial vehicles. The purchase price for PST purposes includes all charges except the GST itself. This can add substantially to the cost of premium vehicles: a $200,000 vehicle faces a blended PST rate of approximately 12–13%.
Final Thoughts
BC's dual GST + PST system is more complex than Ontario's single-rate HST but offers some advantages: services are often cheaper (only 5% GST vs 13% HST) and manufacturing businesses benefit from PST input exemptions. For consumers, the 12% combined rate on most goods is 1% lower than Ontario. For businesses, the administrative burden is higher: two registrations, two filings, and the inability to recover PST as an ITC on most business inputs. Use the BC GST+PST Calculator for instant calculations, and explore the Reverse HST BC guide for a detailed reference on removing tax from totals in BC.
Sources & Citations: Content verified against official guidelines from the IRS (US), HMRC (UK), and ATO (AU). Information is reviewed for accuracy prior to publication.
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