It’s no secret that Vancouver is an expensive city, but staying in it can add up, too. Whether you’re a visitor or a local on a staycation, a major chunk of your hotel bill goes directly to federal, provincial, and municipal taxes.
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From Provincial Sales Tax to temporary additional taxes, here’s exactly where your money is going when you stay in a Vancouver hotel.
Vancouver’s Hotel Taxes Breakdown
PST and GST
Most Vancouverites and B.C. residents probably already know about Provincial Sales Tax (PST) and Goods and Services Tax (GST).
But for those unaware, PST is exactly what it sounds like: it’s a consumption tax charged by the province that applies to taxable goods. In this case, it’s applicable to sales of short-term accommodation provided in B.C., and adds up to 8%. GST is another type of sales tax, although this one is federal. It tacks on an additional 5% cost to your hotel bill.
So far, that’s 13% in taxes.
Municipal and Regional District Tax
Depending on where you’re staying, you could pay up to 3% in Municipal and Regional District Tax (MDRT).
This tax is applied on behalf of municipalities, regional districts, and eligible entities on sales of short-term accommodation provided in participating areas of B.C. According to the provincial government, “MRDT is charged in participating areas to raise revenue primarily for tourism marketing, programs and projects.”
In Vancouver, hotel-goers pay the maximum 3%, bringing our tax total to 16%.
Additional Major Events MRDT
The final tax is an additional temporary tax called the Major Events MRDT, which kicked in on February 1, 2023. It’s meant to “support communities that have expenses associated with hosting international major events,” with a key goal of it being to address Vancouver’s FIFA World Cup 2026 costs.
The tax applies to short-term accommodation provided in Vancouver at a rate of 2.5%, and will end on January 31, 2030.
Adding Everything Up
After GST, PST, MRDT, and Vancouver’s temporary Major Events MRDT, your hotel tax total comes to a whopping 18.5%.
While that will be cut down to 16% once January 2030 passes by, that’s still a fairly large sum of your hotel bill.
Are you surprised by the total?
