If you're shopping, invoicing or budgeting in British Columbia, you're dealing with two separate taxes on most purchases: the federal 5% GST and the provincial 7% PST. Unlike Ontario or Nova Scotia, BC doesn't blend the two into a single harmonized rate — they're calculated and shown separately, which means it's worth knowing exactly how each one is worked out.
The basic calculation
Both GST and PST in BC are calculated on the pre-tax price, not on top of each other. For a $100 purchase:
- GST (5%): $100 × 0.05 = $5.00
- PST (7%): $100 × 0.07 = $7.00
- Total: $100 + $5.00 + $7.00 = $112.00
So a $100 item in BC comes to $112 once both taxes are added — a combined rate of 12%. You can run this calculation instantly, or work backwards from a total you already have, with our PST calculator.
Why BC has GST and PST separately, not HST
BC briefly switched to a blended 12% HST in July 2010, merging PST into the federal tax the way Ontario and the Atlantic provinces have. The change proved unpopular enough that it triggered a province-wide referendum in 2011, where a majority voted to scrap it. BC reverted to separate GST and PST in April 2013 and has stayed there since — one of the few times in Canada that a tax harmonization has been reversed by direct public vote. For the full history, see our British Columbia calculator page.
What's exempt from PST
BC's 7% PST applies to most goods and many services, but it has broad exemptions that catch people off guard, especially since some of these items are still subject to the 5% GST even though they're PST-free:
- Basic groceries
- Prescription medication
- Children's clothing and diapers
- Bicycles
If you're pricing something in one of these categories, remember you'll still owe the 5% GST portion — it's only the 7% PST that's waived.
A special case: used vehicles
Private used-vehicle sales between individuals in BC aren't taxed through the regular retail PST system at all. Instead, ICBC collects a separate vehicle tax at the time of registration and transfer, at BC's own rate for that category — not the general 7% PST this calculator estimates. If you're buying or selling a used vehicle privately, budget for that separately rather than using the standard 12% combined rate.
Who administers what
Another reason BC keeps the two taxes separate rather than merging them: they're administered by two different governments. The 5% GST is federal, collected by the Canada Revenue Agency, the same as anywhere else in the country. The 7% PST is provincial, administered by the Government of British Columbia through its own consumer taxes program, with its own registration process, filing schedule and exemption rules — separate from a business's GST/HST account. A BC business generally needs to register for both if it sells taxable goods or services above the relevant thresholds.
How this compares to HST provinces
It's worth contrasting BC's approach with provinces like Ontario or Nova Scotia, which use a blended HST rate instead. In those provinces, GST and the provincial share are combined into a single percentage and remitted as one tax, so a receipt shows one combined line rather than two. BC tried that model between 2010 and 2013 before reverting, and has kept GST and PST as two distinct taxes ever since — see our HST calculator if you're comparing against a province that does use a blended rate.
Putting it together
For anything else — retail purchases, most services, restaurant meals — the math is simple: multiply the subtotal by 5% for GST and by 7% for PST, then add both to the subtotal for your total. If you're starting from a total and need to work backwards to find the subtotal, the formula is subtotal = total ÷ 1.12, and our reverse sales tax calculator does that step automatically. For federal GST on its own, anywhere in Canada, see our GST calculator.