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British Columbia has no separate restaurant tax. A restaurant meal carries 5% GST and no PST, but liquor carries 5% GST plus 10% PST. On a bill of $80 for food and $40 for wine, that’s $6 of GST and $4 of PST, so the total is $130.
What gets taxed on a BC restaurant bill?
Two taxes can land on the bill. Federal GST is 5% in British Columbia, and the province adds PST on some items. Food for people to eat is exempt from PST, which covers restaurant meals and non-alcoholic drinks like coffee or iced tea. Liquor is the exception, at a PST rate of 10%. The province’s page for food and beverage service providers and retail liquor sellers says so in plain words: meals are exempt, and 10% PST applies to liquor.
Since the two rates differ, a bill with food and drinks has two tax lines. Point of sale systems usually split them for you. The rules only matter if you set up prices, menus or a till by hand.
What rates apply to a restaurant?
| Item | GST | PST |
|---|---|---|
| Meals eaten in | 5% | None |
| Take-out food | 5% | None |
| Coffee, tea and other non-alcoholic drinks | 5% | None |
| Beer, wine, spirits and ciders | 5% | 10% |
| Separately charged containers | 5% | Applies |
| Mandatory gratuity | Not covered here | None |
The province says the liquor rate covers any drink above 1% alcohol. It also says a mandatory gratuity isn’t part of the price the customer pays for the goods, so you don’t charge PST on it, even when the tip is figured on taxable drinks. Whether GST applies to a gratuity isn’t covered by the pages we read, so if you run a restaurant, ask the federal tax office.
What does dinner with wine cost?
Say a couple orders $80 of food and $40 of wine. GST is 5% of the full $120, or $6.00. PST is 10% of the $40 of wine, or $4.00. The bill comes to $130.00.
Drop the wine and the same $80 of food carries $4.00 of GST and no PST, for $84.00.
A meal package that includes a glass of wine at one price gets split. PST is charged on the fair market value of the wine, and the food part stays exempt.
Now a pub night. Three friends in Kamloops order three pints at $8 each, so $24 of beer. PST is $2.40 and GST is $1.20, which makes $27.60 before the tip. A $9 plate of fries on the same tab adds only 45 cents of GST. That’s the whole difference between the two lines on the till, a few bucks over a night out.
Why the GST and PST calculator can mislead you
The GST and PST calculator applies both taxes to the whole price. On $100 it shows $12 of tax and a total of $112. That’s right for many goods in British Columbia, but it overstates the tax on a meal, which would come to $105. Split food from liquor first, or use the GST and HST calculator for the GST part alone.
If your till shows only a total, the reverse sales tax calculator backs the tax out of a price that already includes it.
Does a restaurant have to register?
A business must register to collect PST if it sells taxable drinks such as liquor or soda beverages, or other taxable goods. A restaurant selling only food might not need to, but nearly every restaurant that serves a drink does. GST registration follows separate federal rules, and the small supplier threshold is set by the federal government.
Tax is only one cost line. The payroll remittance calculator covers staff deductions, and the corporate tax calculator estimates the income tax if the restaurant is a corporation.
What do restaurants get wrong?
- Charging PST on all food. That’s wrong, because most food is exempt.
- Forgetting PST on liquor in a bundled price, which leaves the business owing it out of pocket.
- Taxing a split bill by the table total. Each item still follows its own rule.
- Treating soda beverages sold as products or merchandise like a meal. They follow their own rules.
Hotel and accommodation taxes aren’t covered here.
What should a diner check on the bill?
Look for two tax lines if you ordered a drink with alcohol, and one if you didn’t. If PST shows up on a plain meal, ask the server to check it. Mistakes in a bundled special are the most common, since the till has to split the price. Keep the receipt in case you need to point to the line later.
Our sources
The PST rules come from the Province of British Columbia guidance for food and beverage service providers and retail liquor sellers, read in September 2026. The 5% GST rate is the federal rate that applies in British Columbia. The worked examples are simple arithmetic on those rates. This site isn’t connected to any government, and rules can change, so confirm the current wording on the provincial pages or with an accountant.
Frequently asked questions
Is there a restaurant tax in BC?
There's no separate restaurant tax. Meals carry 5% GST, and liquor carries 5% GST plus 10% PST.
Do you pay PST on restaurant food in BC?
No. Food for human consumption is exempt from PST, including meals and non-alcoholic drinks such as coffee.
What PST rate applies to liquor?
The rate is 10%. It covers beer, wine, spirits, ciders and drinks above 1% alcohol.
Is PST charged on a mandatory gratuity?
No. The province says a mandatory gratuity isn't part of the purchase price, so PST doesn't apply to it.
How is a meal package with wine taxed?
PST of 10% applies to the fair market value of the wine, and the food part stays exempt from PST.
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