Updated Checked by the Tax-Services.ca editorial team How we check
There is no BC food tax on basic groceries. Food for human consumption is exempt from BC’s 7% PST, and most basic groceries are zero-rated for the 5% GST as well, so a cart of milk, meat, eggs and vegetables carries no sales tax at all. The tax shows up on a few items, and you can spot them once you know the pattern.
Which food items carry tax in BC?
Two different taxes are in play, and they don’t agree. The province’s PST exempts nearly all food, including restaurant meals, snack foods and candy. The federal GST does tax some of it. So an item can be free of PST and still carry 5% GST.
| Item | GST 5% | PST 7% |
|---|---|---|
| Milk, eggs, fresh meat, fruit and vegetables | No | No |
| Candy and chocolate bars | Yes | No |
| Chips and other snack foods | Yes | No |
| Restaurant meal | Yes | No |
| Heated take-out food | Yes | No |
| Soda pop and other sweetened carbonated drinks | Yes | Yes |
| Beer, wine and spirits | Yes | 10% |
The CRA lists candy, snack foods, carbonated beverages and heated food as taxable for GST. On the BC side, the province’s page for food and beverage service providers and retail liquor sellers says sales of food for human consumption, meals included, are exempt from PST, and that you charge 10% PST on liquor. Soda beverages carry 7%.
What does tax add to a real bill?
Take an $80 dinner for two in a BC restaurant. Only the GST applies, so the tax is $4 and the total is $84. Put that in the GST and PST calculator with the “exempt from PST” box ticked and you get the same answer. Leave the box empty and the tool charges 12%, which gives $89.60, about $5.60 too much.
Then the smaller things. A $10 pack of candy costs $10.50. A $5 bottle of soda costs $5.60, since both taxes apply. A $20 bottle of wine is $20 plus $2 of PST plus $1 of GST, or $23. Our calculator doesn’t handle the 10% liquor rate, so do that one by hand. Even a $3 coffee from the corner Timmies carries just the 5% GST, which is 15 cents, so you pay $3.15.
A basic grocery trip of $150 has no sales tax on it. Now picture a $155 trip: $140 of staples, a $10 chocolate bar haul and a $5 bottle of pop. The staples are free, the chocolate adds 50 cents of GST, and the pop adds 60 cents of GST and PST together, so the tax is $1.10. The exceptions add up slowly, which is why a bill with a couple of snack items can surprise you by a dollar or two.
Why does the tax on food look inconsistent?
Because two governments make two sets of rules. The federal list is long and oddly specific. Bakery items are a good case. The CRA zero-rates them when they’re pre-packaged in quantities of more than five single servings and not eaten on site, so a bag of six muffins is a grocery and a bag of four isn’t.
BC’s approach is much simpler. Food is exempt, and the exceptions are a short list. That’s why BC tables look so different from the federal one, and it’s also why a restaurant in BC charges GST on your meal but no PST.
Don’t confuse this with other provinces. Ontario, for example, charges a single 13% HST instead of separate GST and PST. If you’re comparing prices with another province, run each side through the GST and HST calculator for the right rate.
Where people go wrong with BC food tax
- Assuming every item in a restaurant is taxed 12%. Only GST applies to the meal itself.
- Forgetting that a soda at a grocery store carries both taxes.
- Expecting PST on a meal in Alberta. There is none there, but the GST rules on food are the same.
- Assuming the tax on a beverage follows the same rule as food. Soda and liquor are separate.
This page doesn’t cover every item, and the CRA publishes guidance on edge cases such as bottled water, frozen meals and mixed gift baskets. Check the CRA page on basic groceries if a particular product matters to you.
Does it change your budget?
Not much for most households, since basic groceries aren’t taxed at all. The larger amounts come from restaurants, snacks and drinks. Our budget calculator shows what a month of eating out really costs once 5% is added. And if you have a total with tax included and want the price before tax, the HST reverse calculator backs out the amount.
What should you do if a receipt looks wrong?
Look at the tax lines first. A BC receipt usually shows GST and PST separately, so you can see which items carried which tax. If PST appears on a plain meal or on basic groceries, ask the cashier or the manager to check it, since the point-of-sale system may be coded wrong. Keep the receipt either way.
Our sources
The BC PST rules and rates (7% on soda beverages, 10% on liquor) come from the BC government’s PST pages for food and beverage service providers and its PST exemptions list. The GST treatment of food comes from the Canada Revenue Agency‘s guidance on basic groceries. The 5% GST and 7% PST rates match the CRA rates table. We checked the pages in late September 2026, and this site isn’t tied to either government.
Frequently asked questions
Is there a BC food tax on groceries?
No. Basic groceries are exempt from PST and zero-rated for GST, so a normal grocery basket has no sales tax.
Do restaurant meals pay PST in BC?
No. Food for human consumption, including restaurant meals, is exempt from BC PST. GST of 5% still applies to the meal.
Is candy taxed in BC?
It pays 5% GST but no PST. The CRA treats candy and chocolate bars as taxable, and the BC PST pages exempt candy.
Is soda taxed in BC?
Yes, at both 5% GST and 7% PST. Sweetened carbonated drinks and soda fountain beverages carry PST.
Does the GST and PST calculator handle BC food correctly?
Only with the PST exemption box ticked. Left empty, the calculator charges 12% on everything, which is too high for food.
- How Canadian income tax works: brackets and credits
How federal and provincial Canadian income tax stack up, what marginal and average rates mean, and how credits and deductions change your bill
- British Columbia income tax and PST in 2026
How British Columbia income tax works in 2026: seven brackets starting at 5.6%, the tax reduction credit, the 7% PST and the BC calculators