A Tax Break for all Canadians

In an effort to reduce Canadians’ tax burden during the holiday season, the Federal government announced on Thursday that the majority of expenses will be temporarily free from GST/HST from December 14, 2024 to February 15, 2025.  

Here’s what’s included in the government’s newest tax deduction: 

Food and drink 

While most grocery items are currently free from taxes, this reduction will include items that would otherwise be taxed, like: 

  • Carbonated drinks, fruit juices and juice crystals, and water bottles 
  • Snack foods, including chips, candies, and granola bars 
  •  Prepared foods, like pre-made meals and fruit/veggie trays 
  • Ice cream products 
  • Baked desserts (such as cakes and pies)

  • Alcoholic drinks under seven percent alcohol, like beer, wine, cider, and pre-mixed drinks, will be tax-free as well 

The two-month deduction is also extended to restaurants, meaning all meals purchased from a restaurant (including take-out and delivery) will be exempt from GST/HST until February 15. 

Toys, clothing, and printed goods 

The newest tax deduction includes clothing like children’s socks, hats, footwear, and even baby bibs, along with children’s diapers, car seats, and toys aimed at kids 14 and younger, including video game consoles. 

Christmas trees (natural and artificial) are also included in this list. 

The deduction extends to print newspapers (though not electronic or digital publications), books, and most audio books (as long as at least 90 percent of the recording includes a reading of a printed book). 

Announcing a new tax rebate 

The Prime Minister also introduced a new $250 tax rebate on Thursday, called the Working Canadian Rebate. The rebate is planned to be mailed out in the Spring of 2025 to working Canadians who earned under $150,000 in 2023. 

This is particularly good news for Ontarians, as the province also announced a new $200 taxpayer rebate in their recent Fall Economic Statement for residents over 18 who filed income taxes in 2023. The statement also included an added $200 rebate for children under 18. 

To better understand how the government’s latest announcement, reach out to your Zeifmans’ experienced tax team here.  

Insights