Montreal

1. Taxes in Montreal

In Montreal, as in the rest of Quebec, taxes are an important part of the cost of goods and services. Here’s what you need to know:

a. Sales Tax

Montreal has two levels of sales tax:

1. Federal Goods and Services Tax (GST): 5% of the purchase price.
2. Quebec Sales Tax (QST): 9.975% of the purchase price.

These taxes are applied to most goods and services, including restaurant meals, retail purchases, and entertainment. The combined total sales tax is 14.975%, which is automatically added to your bill at the point of sale.

• Example: If you buy an item priced at CAD 100, the total cost after taxes will be CAD 114.98 (CAD 100 + 14.975%).

b. Restaurant Tax

There is no separate "restaurant tax" in Montreal. The same combined GST (5%) and QST (9.975%) apply to meals at restaurants. However, note that the tax is calculated before tipping, so you’ll need to account for both taxes and tips when budgeting for dining out.

c. Other Taxes

• Alcohol and Tobacco: Additional excise taxes apply to alcohol and tobacco products, making them more expensive.
• Lodging Tax: If you’re staying in a hotel or other short-term accommodation, a lodging tax of 3.5% per night (or a fixed amount per night, depending on the establishment) is added to your bill.

d. Tax Refunds for Visitors

Unfortunately, Canada does not offer tax refunds for visitors on goods or services purchased in the country. However, if you’re an immigrant or planning a long-term stay, taxes will be a regular part of your expenses.

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2. Tipping in Montreal

Tipping is a deeply ingrained cultural norm in Montreal and across Canada. It is considered a way to show appreciation for good service, and in many cases, it is expected. Here’s a breakdown of tipping practices:

a. Restaurants

• The standard tipping rate in restaurants is 15% to 20% of the pre-tax bill.
• Tipping less than 15% is considered poor etiquette unless the service was unsatisfactory.
• Many restaurants provide a suggested tip amount (e.g., 15%, 18%, 20%) on the bill to make it easier for customers to calculate.

How to calculate a tip:

1. Look at the subtotal (before taxes).
2. Multiply the subtotal by your desired tip percentage (e.g., 15% or 20%).
3. Add the tip to the total amount.

• Example: If your pre-tax bill is CAD 50, a 15% tip would be CAD 7.50, and a 20% tip would be CAD 10.

b. Bars and Cafés

• At bars, it’s customary to tip CAD 1 to CAD 2 per drink or 15% to 20% of the total bill.
• At cafés, tipping is less formal. If there’s a tip jar, leaving some loose change or rounding up your bill is appreciated but not mandatory.

c. Taxis and Rideshares

• Tipping taxi or rideshare drivers (e.g., Uber) is expected. The standard tip is 10% to 15% of the fare.
• Many rideshare apps allow you to add a tip directly through the app.

d. Hotels

• Bellhops: CAD 2 to CAD 5 per bag, depending on the level of service.
• Housekeeping: CAD 2 to CAD 5 per night, left in cash in the room with a note indicating it’s for housekeeping.
• Concierge: If the concierge provides a special service (e.g., booking tickets or making reservations), tipping CAD 5 to CAD 20 is appropriate, depending on the complexity of the request.

e. Hairdressers, Spas, and Other Personal Services

• For services like haircuts, massages, or manicures, tipping 15% to 20% of the total bill is standard.

f. Delivery Services

• For food delivery, tipping 10% to 15% of the total bill is customary, with a minimum of CAD 2 to CAD 5 for smaller orders.

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3. Cultural Expectations and Procedures

Understanding the cultural context of taxes and tipping in Montreal will help you navigate these practices with ease:

a. Taxes

• Displayed Prices: In most stores and restaurants, the prices displayed do not include taxes. Be prepared for the final price to be higher than the listed price once taxes are added.
• Receipts: Receipts will typically show the breakdown of GST and QST, so you can see exactly how much tax you’re paying.

b. Tipping

• Why Tipping Matters: In Canada, service industry workers (e.g., servers, bartenders) often rely on tips to supplement their income, as their base wages may be lower than in other industries.
• Cash vs. Card Tips: If you’re paying by card, you’ll usually be prompted to add a tip during the payment process. If you’re paying in cash, leave the tip on the table or hand it directly to the service provider.
• Group Dining: For large groups (e.g., 6 or more people), some restaurants automatically add a gratuity (usually 15% to 18%) to the bill. Check your bill to see if this has been included before adding an additional tip.

c. Budgeting for Taxes and Tips

• When budgeting for meals, shopping, or services, factor in both taxes (14.975%) and tips (15% to 20%) to avoid surprises.
• For example, if you plan to spend CAD 50 on a meal, the total cost after taxes and a 15% tip would be approximately CAD 65.74.

d. Language Considerations

• Montreal is a bilingual city, with French as the primary language. While most service staff also speak English, it’s polite to greet them in French (e.g., “Bonjour”) before switching to English if needed.
• On receipts, you may see “Pourboire” (French for “tip”) or “Service non inclus” (service not included), indicating that tipping is expected.

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4. Practical Tips for Visitors and Immigrants

• Carry Small Bills and Coins: This is helpful for tipping in cash, especially for services like taxis, bellhops, or housekeeping.
• Use Tip Calculators: Many smartphone apps and payment terminals have built-in tip calculators to simplify the process.
• Ask Locals: If you’re unsure about tipping in a specific situation, don’t hesitate to ask locals or service staff for guidance.
• Be Generous: While tipping is technically optional, leaving a fair tip is a sign of respect and appreciation for good service.

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By understanding these practices, you’ll be well-prepared to navigate taxes and tipping in Montreal with confidence. Whether you’re dining out, shopping, or using local services, factoring in these costs will help you budget effectively and show respect for local customs.