GST, PST and HST on restaurant bills: why the total is higher than the menu

In Canada the price on the menu is almost never the price you pay. Sales tax is added at the bottom of the bill, it differs by province, and in some places it treats food and alcohol differently. None of it is hidden, but if you are used to tax-inclusive prices it can make every bill feel a little bigger than expected.

Why don't Canadian menu prices include tax?

It is simply the convention. Prices in shops and on menus are shown before tax, and the tax is added when you pay. The same goes for tips, which are on top again. So a quick mental check is: menu prices, plus tax for your province, plus a tip if there was table service.

What is the difference between GST, PST, HST and QST?

There are two layers of sales tax in Canada, and each province decides how its layer works.

• GST is the federal Goods and Services Tax, 5 percent, charged across the country.
• PST is a separate provincial sales tax used by some provinces, including British Columbia.
• HST is the Harmonized Sales Tax, a single combined federal and provincial rate used by Ontario and the Atlantic provinces.
• QST is Quebec's own provincial sales tax, charged alongside the GST.

Alberta has no provincial sales tax at all, which is why bills there carry only the GST.

How much tax is on a restaurant meal in each province?

Where you are eating	Tax on the food	Notes
British Columbia (Vancouver)	5% GST	Restaurant meals are exempt from BC's PST. Alcohol carries 10% PST on top of GST.
Alberta (Calgary)	5% GST	No provincial sales tax.
Ontario (Toronto)	13% HST	When the total price before HST of the qualifying prepared food and drinks sold to one person at one time is $4.00 or less, the provincial part is rebated at the till. Alcohol is excluded.
Quebec (Montreal)	5% GST plus 9.975% QST	Shown as two separate tax lines on the bill.

Rates change from time to time, so treat this as a guide to how the system works rather than a tax table to file with.

Why is the tax different on wine and beer in BC?

British Columbia exempts restaurant meals from its PST, but not alcohol. Liquor carries a 10 percent PST on top of the 5 percent GST. That is why a Vancouver bill can show two different tax lines: one on the food and one on the drinks.

If a Vancouver bill looks oddly taxed, check whether the drinks and the food are on separate lines. They are taxed differently on purpose.

Is there tax on a coffee or a snack in Ontario?

Ontario has a small exception worth knowing about. When the total price, before HST, of the qualifying prepared food and drinks sold to one person at one time is $4.00 or less, the provincial part of the HST is rebated at the till, so a cheap coffee or a single pastry is taxed at 5 percent rather than 13. Alcohol does not qualify. The Canada Revenue Agency sets the rule (GI-064), and once the total goes above $4.00 the full HST applies.

Do you tip on the tax?

The usual rule is to tip on the amount before tax. The tax is not service, and tipping on it inflates the tip without anyone deciding to. If the card terminal suggests percentages based on the after-tax total, use the custom option and enter your own amount. Quebec now requires terminal suggestions to be calculated before tax.

How do you estimate the real price of dinner in Canada?

A rough rule that works well enough at the table:

1. Add up the menu prices.
2. Add the tax your province charges. The tax lines on the bill show the rates.
3. Add a tip of 15 to 20 percent of the pre-tax amount if a server looked after you.

For example, in Toronto a dinner that adds up to $100 on the menu becomes $113 once the 13 percent HST is added, and the tip comes on top of that. Nobody is overcharging you; it is just arithmetic in a different order from what you might be used to.

Are there any other charges on Canadian restaurant bills?

Occasionally. Some places add an automatic gratuity for larger groups, and a few add their own fees, which they should make clear before you order. A corkage fee applies if you bring your own wine where that is allowed. If you see a line you do not understand, it is completely normal to ask what it is.

Mosey is about where people actually ate and what they thought of it, dish by dish. Knowing what the bill will look like before it arrives makes it easier to enjoy the meal instead of doing sums over dessert.

More guides to read next:

• How much to tip in Canada: restaurants, cafés, bars and takeout
• Richmond's Golden Village food guide: Alexandra Road, malls and food courts
• The Richmond Night Market has closed: what it was and where to find summer night markets now

More in the Canadian food guides and the ranked lists of places.