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Sales tax in Vancouver: 12% and what it covers

Updated Checked by the Tax-Services.ca editorial team How we check

Vancouver sales tax on most things you buy is 12%: 5% federal GST plus 7% BC provincial sales tax (PST). So a $1,000 purchase costs $1,120 at the till. Some items skip one of the two taxes, and that’s where most of the confusion comes from.

What is the sales tax in Vancouver?

There’s no separate city rate to add. The GST comes from Ottawa and the PST from Victoria, and both apply the same way in Vancouver, Surrey or Prince George. We didn’t find any city-level sales tax on the official pages we checked, so 12% is the working number for a normal taxable sale. The BC government’s PST page gives the general PST rate as 7%, with some exceptions.

The CRA says the rate you charge depends on the place of supply, meaning where the sale happens. For a shop on Granville Street, that’s BC. And here’s a detail that trips people up: when PST applies, the GST is worked out on the price before PST, so the two taxes don’t stack on each other.

Item Rate Set by
GST 5% Federal government
PST 7% on most goods and services Province of BC
Combined, typical sale 12% Both, on the pre-tax price

How much tax will I pay on a $2,500 purchase?

Take a $2,500 laptop bought in Vancouver. The GST and PST calculator gives $125 of GST and $175 of PST. That’s $300 in tax and a $2,800 total.

The same maths works on small buys. An $80 jacket picks up $4.00 of GST and $5.60 of PST, so you pay $89.60. For a quick ballpark at the till, think of 12% as roughly an eighth: $100 becomes about $112, and $50 becomes about $56.

Reading a receipt backwards? If the total was $1,120 and you want the price before tax, the reverse sales tax calculator returns $1,000, with $50 of GST and $70 of PST inside it. Divide by 1.12 and you get the same thing.

Do tourists and visitors pay the same 12%?

At the till, yes. A visitor from Calgary buying a jacket on Robson Street pays the same GST and PST as a local, because the tax follows where the sale happens, not where the buyer lives. If you’re planning a shopping trip into BC from Alberta, add the extra 7% to your budget, since you won’t see PST at home.

Does every purchase carry the full 12%?

No. The BC page says the PST rate is “generally” 7%, with some exceptions, and the calculator’s own note says some items are exempt from one tax and not the other. Certain food, children’s items and some services are the usual examples. Our GST and PST tool applies 12% to everything in BC, so it will overstate the tax on those items. Use it for ordinary taxable goods and treat the result as a ceiling.

If you’re unsure about a specific item, look at the printed receipt. Retailers show GST and PST on separate lines, so you can see which taxes were charged.

What if I sell things in Vancouver?

Then you have two accounts to think about. GST is federal and goes through the CRA. PST goes to the province, and BC says a business that sells or leases taxable goods, or provides software or taxable services, in the ordinary course of business in BC must register. Businesses outside BC that sell to BC customers may also need to. The BC page we read doesn’t give a sales threshold for PST registration, so don’t assume you’re too small until you’ve checked the BC registration rules.

Registered sellers collect the PST and report it through the province’s online eTaxBC system. For the federal side, see the GST and HST calculator, which shows what 5% adds in a province like Alberta, where there’s no provincial sales tax at all.

What mistakes come up with Vancouver sales tax?

The big one is adding the two rates to the wrong base. Some people charge 5% on the price, then 7% on the price plus GST. That gives 12.35%, and it’s wrong. Both taxes come off the same pre-tax price.

Another is quoting tax-included prices without saying so. If you say “$1,120 all in”, you’ve promised $1,000 of price, not $1,120 plus tax.

And don’t apply the Ontario or Alberta approach here. Ontario has one 13% HST. Alberta has GST only. BC has two separate taxes, and they’re reported separately.

Running a business that also has staff? The sales tax is only part of the load. The payroll remittance calculator covers what you hold back and send in for employees.

Our sources

The GST and PST rates come from the Canada Revenue Agency‘s GST/HST rates page and the Government of British Columbia’s PST pages, read in October 2026. This website has no connection with the CRA, the province or any other government body. Rates change, so check the current pages before you set prices or file.

Frequently asked questions

Is there a separate Vancouver sales tax?

We found no city-level sales tax on the official pages we read. Vancouver uses the federal GST and the BC PST.

How do I take 12% tax off a total?

Divide the total by 1.12. A $1,120 receipt held $1,000 of price, $50 of GST and $70 of PST.

Is GST charged on top of PST?

No. When PST applies, the CRA says to work out the GST on the price without the PST.

Do I have to register for PST if I sell in Vancouver?

BC says businesses that sell or lease taxable goods, or provide software or taxable services, in the ordinary course of business in BC must register. Check BC's registration page for your case.

Why does the calculator show 12% on food?

Our tool applies 12% to everything in BC. Some food and other items carry no PST, so the real tax can be lower.

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