How much does Vancouver's GST and PST add to a bathroom renovation total?

GST (5%) and PST (7%) together add 12% to your bathroom renovation total in Metro Vancouver, which on a typical mid-range renovation of $20,000–$30,000 means $2,400–$3,600 in taxes alone. This is a significant budget item that many homeowners overlook when planning their renovation, and understanding how these taxes apply can help you budget accurately from the start.

In British Columbia, the 5% federal Goods and Services Tax (GST) applies to virtually everything in a bathroom renovation — contractor labour, materials, fixtures, delivery charges, and permit fees. The 7% Provincial Sales Tax (PST) also applies to materials and fixtures, but its application to labour is where things get nuanced.

For contractor services, most bathroom renovation contractors in Metro Vancouver charge GST on the full invoice amount (labour plus materials). PST is technically a tax on tangible goods, not services, but when a contractor provides a lump-sum contract that bundles labour and materials together — which is how most bathroom renovations are quoted — the PST application depends on the contract structure. Contractors registered for PST collect it on the materials portion. In practice, most Metro Vancouver bathroom contractors simply charge both GST and PST on their full invoice, as the materials component of a bathroom renovation (tile, fixtures, vanity, waterproofing products, backer board, grout, adhesives) typically represents 40–60% of the total cost.

Here is how the tax impact breaks down across different renovation budgets:

Budget bathroom renovation ($10,000–$15,000): GST adds $500–$750, PST on materials adds roughly $280–$525, for a total tax impact of approximately $780–$1,275.

Mid-range bathroom renovation ($20,000–$30,000): GST adds $1,000–$1,500, PST on materials adds roughly $560–$1,050, for a total tax impact of approximately $1,560–$2,550.

High-end bathroom renovation ($40,000–$60,000): GST adds $2,000–$3,000, PST on materials adds roughly $1,120–$2,100, for a total tax impact of approximately $3,120–$5,100.

If you are purchasing materials yourself and hiring a contractor for labour only, the tax structure is clearer. You pay both GST and PST at the point of purchase on all materials and fixtures (tile, vanity, toilet, faucets, lighting, waterproofing products). Your contractor charges GST on their labour invoice. This approach can occasionally save a small amount on PST since you are only paying PST on materials at retail cost rather than on the contractor's marked-up material pricing, but the savings are typically modest and the hassle of sourcing and coordinating your own materials often is not worth it.

One important note for new construction or substantial renovations: if you are building a brand-new home or doing a major renovation that qualifies as substantially renovated housing, you may be eligible for the GST/HST New Housing Rebate, which can return a portion of the GST paid. However, standard bathroom renovations in existing homes do not qualify for this rebate — it applies only when the renovation is so extensive that the home is essentially rebuilt. A bathroom renovation alone, no matter how comprehensive, does not meet the threshold.

Permit fees are also subject to tax. City of Vancouver building permits for bathroom renovations typically cost $150–$600 before tax, and GST applies to municipal permit fees. Electrical and plumbing permits through Technical Safety BC are additional.

A practical budgeting tip: when comparing contractor quotes, always confirm whether the quoted price includes GST and PST or whether taxes are extra. Most professional bathroom contractors in Metro Vancouver quote before tax and add GST and PST as separate line items on the invoice. If a quote seems unusually low, check whether taxes are included — a $20,000 quote plus 12% tax is actually $22,400, which might be comparable to or higher than a seemingly higher quote of $21,500 that already includes taxes.

When budgeting your Metro Vancouver bathroom renovation, add a full 12% on top of your pre-tax estimates for GST and PST combined. This ensures no surprises when the final invoices arrive. On a $25,000 mid-range renovation, that means budgeting $28,000 as your true all-in number — a $3,000 difference that can catch homeowners off guard if they have not planned for it.