Quick answer: British Columbia has 5% federal GST and, for most PST-taxable purchases, 7% provincial PST. When the same purchase is subject to both, the two charges add to 12% of the pre-tax price. That is not a single 12% HST, and not every purchase is subject to both taxes.
What this means: A $100 purchase taxable under both rules has $5 GST and $7 PST, for a $112 total. A $100 purchase taxable only for GST has a $105 total. You need to know what was bought before using a combined rate.
What to do next: Compare the receipt with the CRA GST/HST calculator and rate table and the BC PST guidance. If the item has a special rule, use the linked provincial bulletin rather than assuming 7% PST applies.
Why BC has two sales taxes
GST means goods and services tax. It is the federal tax administered by the Canada Revenue Agency. PST means provincial sales tax. BC administers it under its own rules. The CRA’s province-by-province rate table lists BC as 5% GST and 7% PST, not as an HST province.
“BC sales tax is 12%” is therefore only a shortcut for a purchase that attracts both of the usual rates. If the item or service is not PST-taxable, the extra 7% cannot simply be added. If a special PST rate applies, the quick 12% arithmetic is also wrong. The practical question is not just “Which province?” but “What exactly was sold?”
What the 7% PST rate covers
The BC government says PST generally applies when taxable goods, software or services are bought in BC or brought into BC for use there, unless a specific exemption applies. Its general rate is 7% of the purchase or lease price, with exceptions. This guide does not list every exception; the official BC PST publications and topic pages are the place to check a particular product or service.
That distinction matters for mixed purchases. A bill may contain several lines with different tax treatment. A total tax figure by itself cannot tell you whether the seller calculated each line correctly. If the bill is unclear, ask the seller which item attracted which tax and compare that explanation with the official rules.
Two simple receipt examples
- Both usual rates apply: $100 before tax + $5 GST + $7 PST = $112 total.
- GST only applies: $100 before tax + $5 GST + no PST = $105 total.
These examples are arithmetic, not a ruling that a particular item belongs in either row. For an $85 item taxable under both usual rates, 5% GST is $4.25 and 7% PST is $5.95, giving a $95.20 total. The CRA calculator warns that a tax estimate may differ from a final transaction by a cent or two because of rounding.
BC’s small business guide to PST says PST is calculated on the price before GST is added. Do not calculate 7% PST on a GST-increased price: for the $100 example, that would incorrectly produce $7.35 PST.
If you already know that both usual taxes apply, the combined calculation is pre-tax price × 1.12. To reverse a $112 total on that same assumption, divide by 1.12 to get $100 before tax. Do not use either shortcut where one tax does not apply or a special rate is involved. The CRA calculator has a reverse-price option as well.
How to check a BC receipt
- Start with the price before tax for each item. Confirm whether any discount or delivery charge changes the taxable price using the applicable official guidance.
- Look for the GST and PST amounts. Two separate rates apply in BC; a receipt may display them separately or show a total with supporting details.
- Use CRA’s official calculator for a rough arithmetic check, selecting British Columbia. Remember that its result is an estimate, not a determination of whether your item is taxable.
- Use BC’s PST pages for the product or service category and CRA’s GST/HST guidance for the federal side. If the item’s treatment is still unclear, ask the seller for the tax basis or contact the relevant tax authority.
For a BC PST question, the province lists 1-877-388-4440 for calls from Canada and the United States. For GST questions, use the contact route on the CRA site. There is no need to send your receipt or personal details to Canadian Money Help.
The announced October 2026 PST change is paused
BC had announced a PST expansion for several professional services from October 1, 2026. A BC notice updated September 21, 2026 now says that expansion is paused. The page still contains older paragraphs describing the proposed October start date. Read the current notice at the top before using those paragraphs as instructions.
This pause does not change the general 5% GST or 7% PST rates described above. It does show why a dated rate table alone cannot answer whether a particular service is PST-taxable. If you provide one of the affected services, check BC’s latest notice before changing an invoice or registering solely because of the earlier announcement.
If you are buying or selling
If you are buying: Keep the receipt and ask the seller to explain a tax charge that does not match the type of purchase. Compare that explanation with the official BC PST and CRA GST guidance. A difference does not automatically mean an error; the item may have a special treatment or the displayed price may be tax-inclusive.
If you run a business: GST/HST registration and BC PST registration are separate questions. The CMH GST/HST registration guide explains the federal small-supplier test, but it does not decide whether BC requires you to collect PST. Use the province’s PST registration and charging guidance for that. Do not treat the two systems as one account or one threshold.
Common mistakes
- Calling 12% “BC HST.” The usual total is made from separate 5% GST and 7% PST charges.
- Adding 12% to every purchase. Check the item and both sets of tax rules first.
- Using a calculator as a taxability ruling. A calculator checks arithmetic under chosen assumptions; it cannot settle every exemption or special rate.
- Following an old 2026 PST announcement. BC’s current notice says the professional-services expansion is paused.
- Using the federal GST registration guide for PST registration. BC administers PST separately.
Frequently asked questions
- What is GST in BC in 2026?
- The CRA rate table lists 5% GST for British Columbia. Whether a particular sale is taxed depends on the federal rules for that supply.
- What is the general BC PST rate?
- Generally 7% on PST-taxable goods, software or services. The province lists exceptions and special rules.
- Does BC have 12% HST?
- No. A purchase taxable under both usual rates has 5% GST plus 7% PST. They remain separate taxes.
- Is the October 2026 PST expansion to professional services going ahead?
- BC’s notice updated September 21, 2026 says it is paused. Recheck the official notice for any later change.
Rates and scope basis
This guide uses the CRA rate table, the BC PST overview and BC’s current professional-services notice, all checked September 24, 2026. Its arithmetic examples assume an item taxable at the ordinary rates stated. They do not decide the tax treatment of a real purchase. Recheck the BC notice if the paused proposal changes, and use the official product-specific rules before charging or disputing tax.