Understand Prices, Taxes, and Tipping

Description

Two things will catch you off guard in your first week: the price on the tag is never what you pay at the checkout, and leaving money on the table after a restaurant meal is expected — not optional. Takes 5 minutes to understand, saves you awkward moments every day.

In person N/A

Online 5 min

What to do

1. Remember that prices in BC do not include tax — the final price is always higher than the tag

2. Add roughly 12% (GST + PST) to any price you see to estimate the real cost at checkout

3. When eating at a sit-down restaurant, plan to add 15–20% tip on top of the bill

4. When the payment terminal asks for a tip, you can enter a custom amount — including $0

5. Check your receipt — some restaurants automatically add a service charge for large groups

Warnings

The tip prompt on the payment terminal can feel pressuring

The screen faces you and the server is often standing nearby — it can feel uncomfortable to tip low
You are not legally required to tip, but in sit-down restaurants it is a strong social expectation
Tips are a major part of income for many service workers, even though base wages in BC are higher than in some other countries

Tipping culture is different depending on where you are

Sit-down restaurant with table service: 15–20% is standard
Counter service, fast food, or self-checkout: tipping is optional and often skipped
Taxis and rideshares: 10–15% is common
Grocery stores, retail shops, and government offices: no tipping expected

Tips

How taxes work in BC

BC has two taxes added at checkout: GST (5%, federal) and PST (7%, provincial). Combined, most purchases add 12% to the listed price. Some items like basic groceries and prescription medications are exempt from PST — but clothing, electronics, and restaurant meals are not.

Quick mental math

To quickly estimate the real price, multiply the listed price by 1.12. A $10 item costs about $11.20. A $50 meal will cost about $56 before tip — and closer to $65–70 after a 15–20% tip.

Tip before or after tax?

Tips are usually calculated on the pre-tax amount. But payment terminals often suggest percentages based on the full total including tax — so the suggested amounts are slightly higher than expected. You can always enter a custom amount to control exactly what you tip.

When tipping is genuinely optional

Coffee shops and takeout counters now show tip prompts too — this is a relatively new trend and tipping here is entirely your choice. Pressing 'No tip' or entering a custom amount of $0 is completely acceptable.

Alcohol is taxed more heavily

Beer, wine, and spirits in BC have a higher PST rate of 10% instead of the usual 7%, making the total tax 15%. The difference between the listed price and your final bill can be noticeably larger than with other purchases.

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