If you've ever looked at your salon receipt in West Vancouver and wondered about the tax breakdown, you're not alone. British Columbia's tax system can be confusing, especially when services and products are taxed differently. Here's everything you need to know about taxes on haircuts and salon services in BC.
The Short Answer: GST Yes, PST No
In British Columbia, haircuts and salon services are subject to the 5% GST (Goods and Services Tax), but they are exempt from the 7% PST (Provincial Sales Tax). This means when you get a haircut, blowout, or other styling service, you'll see 5% tax added to your bill—not 12%.
Why Services and Products Are Taxed Differently
Understanding BC's tax system helps explain why your receipt looks the way it does.
GST (Federal - 5%): The Goods and Services Tax is a federal tax that applies to most goods and services sold in Canada, including salon services. Whether you get a haircut, a color treatment, or a blowout, GST applies.
PST (Provincial - 7%): The Provincial Sales Tax in BC generally applies to tangible goods rather than services. Since a haircut is a service—you're paying for someone's time and expertise, not a physical product—PST doesn't apply. This is why BC residents pay 5% tax on services rather than the full 12%.
What About Products You Buy at the Salon?
Here's where it gets a bit more complicated. If you purchase hair products at the salon—shampoo, conditioner, styling products, etc.—those items are considered tangible goods and are subject to both GST (5%) and PST (7%), totaling 12% tax.
So on the same receipt, you might see your haircut taxed at 5% while your styling product purchase is taxed at 12%. This is correct and reflects how BC applies different tax rates to services versus goods.
Real Examples: What Your Bill Looks Like
Let's break down some real-world examples to make this concrete.
Example 1: Just a Haircut
Haircut: $75.00
GST (5%): $3.75
PST: $0.00
Total: $78.75
Example 2: Blowout Service
Blowout: $66.00
GST (5%): $3.30
PST: $0.00
Total: $69.30
Example 3: Service + Product Purchase
Haircut: $75.00
Styling Product: $35.00
GST on haircut (5%): $3.75
GST on product (5%): $1.75
PST on product (7%): $2.45
Total: $117.95
How This Compares to Other Provinces
BC's separate GST/PST system is different from provinces with HST (Harmonized Sales Tax). In Ontario, for example, all services including haircuts are subject to 13% HST. In Nova Scotia, it's 15% HST. BC residents actually pay less tax on salon services than many other Canadians because services are PST-exempt.
Tips and Tax
One common question: is tip calculated before or after tax? The answer is it's up to you, but traditionally tips are calculated on the pre-tax amount. If your service was $75, a 20% tip would be $15 whether you calculate it before or after the $3.75 GST is added. That said, many people simply tip on the final amount for simplicity.
Also worth noting: tips themselves are not taxed at point of sale. The tax you see on your receipt is only on the service price, not on any gratuity you add.
Gift Cards and Tax
If you're purchasing a gift card for salon services, no tax is charged at the time of purchase. Tax is only applied when the gift card is redeemed and services are rendered. This is standard for gift card transactions across Canada.
What This Means for Your Salon Budget
When budgeting for salon visits in West Vancouver, add 5% to service prices for the final pre-tip total. A $100 service will be $105 with tax. If you're also buying products, add 12% to those purchases. And remember to factor in tip on top of these amounts.
For example, if you're getting a Cezanne treatment priced at $350, your total before tip would be $367.50 ($350 + $17.50 GST). A 20% tip calculated on the service price would add $70, bringing your total to $437.50.
The Bottom Line
When you visit a salon in BC, you'll pay 5% GST on services like haircuts, blowouts, and treatments. PST is only added if you purchase products. This makes salon services slightly more affordable in BC compared to HST provinces. Understanding this helps you budget accurately and makes sense of your receipt when you're paying at the end of your appointment.