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Score Holiday Savings: Canada’s GST/HST Tax Break Starts Saturday (Dec. 14 to Feb. 15)
Hey everyone, I wanted to share some details about a temporary tax break that’s coming into effect this Saturday. This could mean some of your holiday shopping will cost a bit less than usual, so let’s talk through what’s happening and which items are included.
Starting this Saturday, for the next two months, the government is temporarily removing federal and provincial sales tax from certain purchases. This means you won’t pay GST or HST on some items for a limited time — from Dec. 14 to Feb. 15. The idea behind this tax break is to help ease living costs for Canadians, especially during the holiday season.
What’s the deal with the tax break?
For the next two months, no federal or provincial tax on a range of items. This includes all groceries, restaurant meals, children’s clothing, toys, diapers, plus beer and wine.
If you’re in Ontario, for the items covered, the full harmonized sales tax (HST)—which normally blends the 5% federal GST and the 8% provincial portion—won’t apply. Basically, a 13% price drop on those specific products.
The government also mentioned a proposal to send $250 cheques to anyone who worked in 2023 and made less than $150,000. However, they haven’t yet introduced a law for that. The NDP and Bloc, and even some Liberals, are pushing to expand eligibility to more people.
Which items are covered under this GST/HST holiday?
Let’s break it down by category:
Children’s Goods:
Video Games:
Books:
Newspapers:
Christmas Trees:
Food and Drinks:
What about existing provincial breaks?
In Ontario, there’s already a point-of-sale rebate for the 8% provincial portion on many of these items. Now, with the federal portion also waived, you’ll see the full 13% off these products during the two-month period.
How much can you actually save?
It really depends on what you buy. If you’re picking up toys, books, and processed foods, you might save a decent chunk. If you mostly buy basic groceries (already exempt) or aren’t buying much of the covered items, you won’t notice a huge difference.
Some examples:
In short:
Hope this helps you understand the tax break better! Feel free to share your thoughts or any good deals you spot.
Starting this Saturday, for the next two months, the government is temporarily removing federal and provincial sales tax from certain purchases. This means you won’t pay GST or HST on some items for a limited time — from Dec. 14 to Feb. 15. The idea behind this tax break is to help ease living costs for Canadians, especially during the holiday season.
What’s the deal with the tax break?
For the next two months, no federal or provincial tax on a range of items. This includes all groceries, restaurant meals, children’s clothing, toys, diapers, plus beer and wine.
If you’re in Ontario, for the items covered, the full harmonized sales tax (HST)—which normally blends the 5% federal GST and the 8% provincial portion—won’t apply. Basically, a 13% price drop on those specific products.
The government also mentioned a proposal to send $250 cheques to anyone who worked in 2023 and made less than $150,000. However, they haven’t yet introduced a law for that. The NDP and Bloc, and even some Liberals, are pushing to expand eligibility to more people.
Which items are covered under this GST/HST holiday?
Let’s break it down by category:
Children’s Goods:
- Kids’ clothing, diapers, car seats, and toys are included.
Clothing:- Covers baby clothes, bibs, blankets, children’s clothes up to a certain size (girls’ size 16, boys’ size 20), kids’ socks, hats, scarves, gloves, and certain sports clothing like jerseys, leotards, ski jackets, and swimsuits for recreational use.
- Not covered: specialized sports gear (wetsuits, cleats, skates, ski boots), adult clothing bought for a child, costumes, makeup, and jewelry.
Diapers:- Cloth, disposable diapers, diaper inserts, and training pants are included. Adult diapers are not (but they’re already exempt from GST/HST).
Car Seats:- All children’s car seats and boosters meeting safety standards are included. Car seats built into strollers or carrier combos aren’t included.
Toys:- Toys intended for kids under 14 years old are included (this generally covers toys recommended for kids aged 8+ as well), such as board games, card games, dolls, plush toys, and jigsaw puzzles.
- Not covered: collectible items (like hockey cards, collectible dolls) or toys marketed for adults (like certain adult-themed Lego sets).
Video Games:
- Video game consoles, controllers, and physical copies of video games (like discs or cartridges) are included.
Books:
- Printed books (hardcover and softcover), magazines, and periodicals are covered.
- Ebooks and audiobooks are not included.
- Magazines must be subscription-based or have less than 5% ad space to qualify.
- Agendas, calendars, and notebooks don’t qualify.
Newspapers:
- Printed newspapers are included.
- Digital versions don’t qualify.
Christmas Trees:
- Natural and artificial Christmas trees, plus similar decorative trees, qualify for the tax break.
Food and Drinks:
- All restaurant meals (dine-in, takeout, delivery) are covered. This includes prepared foods, pre-made meals, and catering.
- Snacks like chips, candy, baked goods, and non-alcoholic beverages (coffee, tea, juice, soda, smoothies) are included, as well as beer, wine (22.9% ABV or less), cider, sake, and premixed alcoholic drinks (7% ABV or less).
- Not included: food or drink from vending machines, dietary supplements, pet food.
- Basic groceries (fresh fruits, veggies, meat, poultry, fish) already don’t have GST/HST applied, so no extra savings there.
What about existing provincial breaks?
In Ontario, there’s already a point-of-sale rebate for the 8% provincial portion on many of these items. Now, with the federal portion also waived, you’ll see the full 13% off these products during the two-month period.
How much can you actually save?
It really depends on what you buy. If you’re picking up toys, books, and processed foods, you might save a decent chunk. If you mostly buy basic groceries (already exempt) or aren’t buying much of the covered items, you won’t notice a huge difference.
Some examples:
- Buying a PlayStation 5 Slim, extra controller, and a physical game (like NHL 25): Normally around $802.27, now it’ll be about $709.97, saving you around $92.30.
- Stocking up on diapers, kids’ Lego, and chips at Costco: Normally around $199.47 (with some provincial rebates already in place), it could go down to $189.97, about $24.70 in savings.
- Buying books: A Game of Thrones box set (five books) usually $67.74, now about $59.95, saving roughly $7.79.
In short:
- The two-month GST/HST holiday runs from Dec. 14 to Feb. 15.
- Covers a wide range of items, mostly benefiting those who buy children’s goods, toys, certain books, games, prepared foods, drinks, beer, and wine.
- Actual savings depend on what you purchase.
- Basic groceries already tax-exempt, so no extra benefits there if that’s all you buy.
Hope this helps you understand the tax break better! Feel free to share your thoughts or any good deals you spot.