Sales tax and tipping in Canada: why the price you see isn't the price you pay

The first habit to drop when arriving from France: reading a label and thinking you know the price. In Canada, taxes are added at the till, and at restaurants a tip goes on top. Here is how to work out what you will actually pay.

Prices shown before tax

In France, the law requires prices to be displayed including tax. In Canada it is the other way round: shops generally display the price before tax, then add the federal tax (GST) and, depending on the province, a provincial tax or a harmonized sales tax (HST).

Some products are zero-rated or exempt (basic groceries, for example), which is why two items with the same displayed price do not always cost the same at the till.

Sales tax by province

General rates for most goods and services, checked with the Canada Revenue Agency. Special rules apply to some products.

How much to tip

Tipping is not legally required, but it is expected in restaurants with table service, where it makes up a significant share of staff pay.

• Restaurant with table service: 15 to 20% of the pre-tax amount.
• Bar: about $1 to $2 per drink, or 15 to 20% of the bill.
• Taxi and ride-hailing: around 10 to 15%.
• Hairdresser, treatments: about 15%.
• Tour guide: depending on length and quality, often a few dollars per person per day.

Card terminals often suggest pre-filled percentages, sometimes calculated on the amount including tax. You can always choose “custom amount”.

A worked restaurant example

A dish listed at $20.00 in a Montreal restaurant, with an 18% tip calculated before tax:

That is 33% more than the menu price. In Alberta, the same meal would cost $24.60 (5% GST only).

Building it into your budget

Over a trip, the gap between displayed and paid prices can add up to several hundred euros. Our trip budget calculator automatically adds the chosen province’s taxes and the tip on meals.