British Columbia is one of the few remaining provinces in Canada that resists the "Harmonized" Sales Tax (HST) system. Instead, the province maintains a dual-tax system consisting of the federal Goods and Services Tax (5%) and a separate Provincial Sales Tax (7%). For residents and business owners in 2026, this creates a unique administrative burden. Unlike the unified 13% or 15% seen elsewhere, BC's PST is a variable tax that can range from 0% to 20% depending on what you are buying and how much it costs. This guide decodes the complexities of the BC sales tax system and reveals how to navigate its many tiers.

Total BC Tax = (Price × 5% GST) + (Price × PST Rate)

Note: In BC, the PST is calculated on the pre-GST price. You do not pay "tax on tax."

The PST Hierarchy: From 7% to 20%

While 7% is the "general" PST rate, British Columbia uses its sales tax system to influence consumer behavior and capture revenue from luxury purchases. In 2026, the rates are highly segmented:

  • General Goods & Services (7%): This applies to electronics, furniture, and most professional services.
  • Liquor (10%): Alcohol is taxed at a higher rate to fund provincial health and social programs.
  • Short-Term Accommodation (8%): Hotels and Airbnbs charge 8% PST, plus a potential Municipal and Regional District Tax (MRDT) of up to 3%, for a total of 11% provincial tax.
  • Vaping Products (20%): To combat youth nicotine use, BC maintains the highest vaping tax in Canada.

The Luxury Vehicle Surcharge: A BC Special

If you are buying a car in BC in 2026, the PST rate is determined entirely by the purchase price. This "sliding scale" is designed to hit luxury buyers harder.

Vehicle Purchase Price PST Rate Combined Tax (incl. 5% GST)
Under $55,000 7% 12%
$55,000 to $55,999 8% 13%
$56,000 to $56,999 9% 14%
$57,000 to $124,999 10% 15%
$125,000 to $149,999 15% 20%
$150,000 and Over 20% 25%

Note that for Electric Vehicles (EVs), the luxury thresholds are slightly higher to encourage the adoption of zero-emission vehicles. As of 2026, the 7% rate for EVs extends up to $75,000.

PST Exemptions: Where You Save in BC

One advantage of BC's separate PST system is that the province can choose to exempt items that would otherwise be taxed under an HST system. In 2026, these items are PST-exempt (0%), though they may still be subject to 5% GST:

  • Children’s Clothing and Footwear: Items designed for children under 15 are PST-exempt.
  • Bicycles: Including electric-assist bicycles, are 100% PST-free to encourage green transit.
  • Printed Books: Educational materials and books are exempt from PST.
  • Used Clothing: Purchases of used clothing or footwear under $100 are exempt.
Key Fact: The PST "Small Seller" Threshold If you are a BC resident selling goods through a side hustle, you are not required to register for or collect PST if your total annual revenue is less than $10,000. This is different from the $30,000 GST threshold.

Frequently Asked Questions

Do I pay PST on restaurant meals in BC?

Generally, no. Restaurant meals are exempt from PST in BC. You only pay the 5% federal GST. This makes dining out in BC significantly cheaper than in Ontario (13%) or Nova Scotia (15%). However, if you order alcohol, that portion of the bill is subject to 10% PST.

Is there PST on real estate in British Columbia?

No. PST does not apply to the purchase of real property. Instead, you pay the Property Transfer Tax (PTT). However, GST (5%) does apply to the purchase of newly constructed homes.

What is the MRDT tax I see on my hotel bill?

The Municipal and Regional District Tax (MRDT) is a tax of up to 3% applied to short-term accommodation. It is used to fund local tourism marketing and, increasingly, affordable housing initiatives in BC cities.

Can I get a PST refund if I buy something in BC and move it to another province?

Yes. If you pay PST on a vehicle or goods in BC and move them to another province within 30 days, you may be eligible for a refund of the BC PST, provided you can prove you paid sales tax in your new home province.

Are streaming services like Netflix subject to BC PST?

Yes. BC requires "major digital service providers" to collect 7% PST on digital software and streaming subscriptions if the subscriber is located in British Columbia.

Navigating BC's dual-tax system requires attention to detail, especially when making major purchases like a vehicle or booking a vacation. By understanding which items qualify for the 7%, 10%, or 20% rates—and which are completely exempt—you can better manage your budget in one of Canada's most expensive provinces.

Need an exact total for your next purchase? Use our BC Sales Tax Calculator to break down the GST and PST components instantly.

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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