Canada’s GST/HST Relief is Ending, but These Groceries Will Remain Tax-Free

As the GST/HST break comes to an end on February 15, 2025, you might be wondering how it will affect your grocery bills in Canada. While many products may become more expensive, there are still a number of grocery items that will remain tax-free, even after the freeze is lifted. The federal government defines certain “basic groceries” as zero-rated, which means they will continue to be exempt from GST/HST. This means that despite the end of the tax break, you’ll still enjoy tax-free groceries on many common items.

If you’re curious about which grocery products won’t be taxed even after the GST/HST break ends, here’s a comprehensive list to help you out.

Tax-Free Grocery Items Post-GST/HST Break: What You Can Expect

Food Items

These everyday grocery products are among the most common items that will remain tax-free:

• Fresh, Frozen, and Canned Fruits and Vegetables: All these options, including vacuum-sealed varieties, are exempt from GST/HST.
• Breakfast Cereals: These are tax-free, including a wide range of cold and hot cereals.
• Dairy Products: Most milk products, such as milk, cream, and cheese, remain exempt from the tax.
• Fresh Meat, Poultry, and Fish: Whether it’s chicken, beef, or seafood, these items won’t see any GST/HST charges.
• Eggs: Eggs will stay tax-free, making them an even better deal.
• Coffee Beans: If you buy whole coffee beans, there’s no tax added.
• Bread Products: Many bread items are tax-free, including:
  • Bagels
  • English muffins (without sweet fillings)
  • Croissants and scones
  • Tea biscuits and bread rolls (without sweetened coatings)
  • Tortilla and taco shells
  • Savoury pies (including meat pies)
  • Unfilled doughs, such as puff pastry and cookie dough
  • Pies, phyllo leaves, and other pastry products
• Crackers: The following crackers are exempt from GST/HST:
  • Soda crackers
  • Salted crackers
  • Table water crackers
  • Cream crackers
  • Rice crackers and crispbread
  • Snacking crackers (e.g., vegetable, bacon, or cheese-flavored)
  • Wheat thins, breadsticks, rusks, and more.
• Mixed Vegetables: Packaged mixes like stir-fry or chop suey vegetables are tax-free. However, pre-mixed salads may be taxed if they’re fully prepared.
• Frozen Sandwiches and Uncooked Pizzas: These also remain exempt from the tax.
• Condiments: Everyday essentials like ketchup, mustard, and relish will continue to be tax-free.

Baking Ingredients

If you love to bake, you’ll be happy to know these ingredients remain tax-free:

• Bulk industrial chocolate
• Chocolate chips and baker’s chocolate
• Liquid chocolate icing and edible cake decorations
• Fondue chocolate and chocolate spreads
• Angelica and cocktail cherries

Specialty Food Items

• Pudding, Gelatin, and Mousse: Tax-free when pre-packaged and prepared for babies.
• Meal Replacements and Nutritional Supplements: These items will remain tax-free unless sold from a vending machine.
• Energy Bars & Protein Bars: If they qualify as meal replacements or nutritional supplements (and aren’t sold from vending machines), these items will not be taxed.

Snacks

While most snacks will be subject to GST/HST, there are a few exceptions, including:

• Unpopped Popcorn Kernels: Whether they’re microwaveable or regular kernels, they won’t be taxed.
• Natural Nuts: If the nuts are in their natural state (not seasoned or roasted), they’re exempt from tax.
• Cooking Wines: De-alcoholized cooking wines and those purchased as condiments in grocery stores remain tax-free.

Drink Items

Here’s a list of drinks you can still purchase without tax:

• Plain Bottled Water: Water sold in multi-serving packages or large bottles will continue to be exempt.
• Meal Replacements and Nutritional Supplements: Drinks in this category, such as formulated liquid diet products, will remain tax-free, unless sold from a vending machine.
• Beverage Additives: Syrups, powders, and flavorings (excluding fruit-flavored varieties) used to make beverages will not be taxed.
• Baby Beverages: Any drinks specifically prepared and pre-packaged for babies, excluding unflavored milk, will remain tax-free.

February 2025 GST/HST Refund Key Dates and Payment Information

Stock Up Now Canada’s GST/HST Break on Groceries Ending Soon

How Much is the Next GST/HST Payment in 2025?

GST/HST Credit Payments for January 2025 Are Coming Soon — Find Out How Much You Could Receive

Final Thoughts: What’s Changing and What’s Staying the Same

While some grocery prices may rise when the GST/HST break ends, many staple items like fresh produce, dairy, meat, bread, and basic snacks will still be tax-exempt. The government’s zero-rating of basic groceries ensures that Canadians continue to have access to affordable food, especially when it comes to essentials. Knowing which products remain tax-free can help you plan your grocery shopping and budget more effectively.

So, when February 15th rolls around, keep these tax-free items in mind and shop smart to avoid unnecessary price hikes. Happy grocery shopping!