Will PST increase in British Columbia in 2026? The general rate stays 7%. BC paused its planned PST expansion to professional services before the October 1, 2026 start, but other Budget 2026 changes — ending PST exemptions for clothing-related fabric, basic cable, toll-free and landline phone service — went ahead as scheduled that same day.
What PST changes did BC make in 2026?
Budget 2026 makes three separate changes to BC PST, each on its own timeline. The province paused a planned expansion of PST to professional services before it took effect. Separately, several existing PST exemptions for goods and services were eliminated on October 1, 2026, and a new point-of-sale exemption for goods leaving the province started February 18, 2026. The sections below cover each change and its current status.
Is the PST on professional services paused?
Yes. BC’s guidance says the planned expansion of PST to accounting and bookkeeping, architectural, engineering and geoscience, non-residential real-estate services — including rental-property and strata-management services and commissions tied to buying and selling non-residential real estate — and security and private-investigation services is paused ahead of its October 1, 2026 start. A temporary regulation keeps the existing PST exemption in place for these services while the pause is in effect. If a business already registered for a PST account for one of these services, BC’s guidance says to cancel it through eTaxBC or by calling 1-877-388-4440. As originally proposed, PST on architectural, engineering and geoscience services would apply to only 30% of the purchase price of those services, not the full price.
Earlier notices about an October 1 start date describe the proposal before the pause. Check the latest provincial guidance for the exact service and any subsequent change before pricing or invoicing. The pause does not itself change existing obligations for services already subject to PST.
Which BC PST exemptions ended on October 1, 2026?
Separately from the paused expansion, Budget 2026 eliminated several existing PST exemptions effective October 1, 2026. The exemption for clothing patterns, yarn, natural fibres, synthetic thread and fabric commonly used to make or repair clothing ended, as did the exemption for services related to clothing and footwear — basic laundry services remain exempt. BC also removed the PST exemption for basic cable television service, toll-free telephone service and residential landline telephone service. BC’s pause announcement for the professional-services expansion does not mention these exemption changes, so they took effect as originally scheduled.
BC also added a new exemption on a different date: effective February 18, 2026, sellers of goods can give a point-of-sale PST exemption or refund to a business buying goods for use outside BC, instead of requiring the purchaser to claim it afterward. For other exemptions, see the PST and GST exemptions guide.
| Measure | Planned date | Status (Oct 2026) |
|---|---|---|
| PST on accounting, bookkeeping, architectural, engineering, geoscience, non-residential real estate & property management, and security services | Oct 1, 2026 | Paused (announced Sept 18, 2026); registered accounts can be cancelled via eTaxBC |
| Exemption for clothing patterns, yarn and fabric removed | Oct 1, 2026 | Took effect |
| Exemption for clothing and footwear services removed (laundry stays exempt) | Oct 1, 2026 | Took effect |
| Exemption for basic cable, toll-free and residential landline service removed | Oct 1, 2026 | Took effect |
| Point-of-sale exemption for goods leaving BC | Feb 18, 2026 | Took effect |
How do GST and PST work on a typical taxable sale?
Where both 5% federal GST and the general 7% BC PST apply to the same $100 pre-tax price, the taxes are $5 and $7, for a $112 total. This is a general-rate example, not a rule that every good or service attracts both taxes. GST and BC PST are separate taxes, with different registration and remittance rules. See the BC GST and PST guide and BC PST registration guide.
Do the paused services have GST?
The provincial PST pause does not determine the federal GST treatment. For an invoice of $1,000 for a service that is exempt from BC PST and taxable at 5% GST, the example is $50 GST and a $1,050 total. Whether that treatment applies depends on the actual service and customer. Check CRA GST/HST rate guidance as well as current BC rules.
Are there rates other than 7%?
Yes. The general 7% rate does not cover every taxable item. BC’s legislation sets a 20% PST rate for vapour products; the CRA explains that GST is calculated on the price including that PST in the relevant case. For a $100 price, $20 PST and $6 GST give a $126 total. Confirm the actual product and rules before calculating. BC Provincial Sales Tax Act; CRA vapour-product calculation.
What should a business do now?
- Identify the goods or services it actually supplies and check their current PST and GST treatment.
- Review whether an existing BC PST registration is required. The provincial small-seller rules have several conditions; a revenue figure alone does not establish eligibility.
- Keep federal GST/HST registration separate. Use the GST/HST registration guide for that federal obligation.
- Use the BC calculator only when its ordinary rates and tax base fit the transaction.
Sources
- BC news release: PST expansion paused (Sept 18, 2026)
- gov.bc.ca: Provincial sales tax (PST), updated Sept 21, 2026
- BC Budget 2026: Tax Measures (PDF)
- BC Provincial Sales Tax Act
- CRA: GST and BC vapour-product PST
- CRA: GST/HST rates
Sources checked October 17, 2026.