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Summary

So many groceries aren't tax-free in Canada and these items make your grocery bill cost more

You probably have a lot of these products on your shopping list! 🛒

beverage aisle at a grocery store in canada

Grocery store aisle.

Wwphoto | Dreamstime
Senior Writer

While a lot of products are tax-free at grocery stores in Canada, there are many that you have to pay tax on.

These items, which include some shopping list staples, make your grocery bill more expensive.

Canada's federal government considers some items to be "basic groceries" that are "zero-rated."

That means these products are exempt from GST or HST.

Basic groceries include food and beverages like produce, meat, and dairy.

But so many items aren't basic groceries, which means you have to pay an added cost at the grocery store checkout.

You probably have a lot of these products on your weekly shopping list.

So, here's what you need to know about the groceries that aren't tax-free in Canada.

Milk

Flavoured milk is taxable when sold in single servings.

That includes fruit-flavoured milk and other flavours like chocolate.

A beverage that's less than 600 millilitres is considered to be a single serving by the federal government.

Salad

Salads are taxable, unless they are canned or vacuum sealed.

Pre-packaged salad kits are taxable when the package contains the ingredients for a salad, but the ingredients are already mixed.

Food platters

Platters or arrangements of cheese, cold cuts, fruit or vegetables and other arrangements of prepared foods and other food items are taxable.

That includes:

  • trays of appetizers, including cheese, fruit, canapés, pâtés
  • crudités
  • platters of meat, fish, poultry and other foods, including cold cuts
  • frozen shrimp rings
  • sushi

Bread

Bread products such as bagels, English muffins, scones, tea biscuits, croissants, or bread rolls that have sweetened fillings or coatings are taxable in Canada.

That includes loaves and breads consisting primarily of a muffin mix or similar sweetened base (like banana bread or a carrot loaf), and hot cross buns.

Baked goods

Baked goods like cakes, muffins, pies, pastries, tarts, cookies, donuts, and brownies with sweetened filling or coating, and similar products are taxable if:

  • they are pre-packaged in quantities of less than six items, each of which is a single serving
  • they are not pre-packaged and are sold as single servings in quantities of less than six

That also includes flan, sweetened crepes and pancakes, strudel, squares (like Rice Krispie squares), bars (like Nanaimo bars), tortes, Indian sweets, beignets and fritters, and waffles.

Cereal bars and muffin bars

Cereal bars and muffin bars are taxable when sold individually (regardless of how many you buy) and when sold in boxes containing fewer than six bars.

That includes bars made from commercial cereals and other ingredients such as fruit.

Cereal and muffin bars typically have ingredients that are similar to granola bars (like a mixture of cereals and honey and/or syrup), but the ingredients are processed to a greater extent.

The bars can have a muffin-like texture or a fruit filling in a baked crust.

Popcorn

Popcorn is taxable with GST or HST when it's sold already popped.

Chips

Chips, crisps, puffs, curls or sticks (including potato chips, corn chips, cheese puffs, potato sticks, bacon crisps and cheese curls) are taxable.

Similar snack foods, including brittle pretzels but not any product that is sold primarily as a breakfast cereal, are taxable in Canada as well.

Nut bars

Nut bars are taxable at grocery stores in Canada.

These bars generally include one or more types of nuts and syrup or honey as the main ingredients.

Fruit snacks

Fruit bars, rolls, or drops and similar fruit-based snack foods are taxable.

Nuts and seeds

Salted nuts and salted seeds (like peanuts, sunflower seeds, and mixed nuts) are subject to GST and HST.

Nuts or seeds that come in various flavours, such as Cajun or barbecue, are taxable if the seasoning or coating includes salt as an ingredient.

Also, a mixture of two or more types of nuts is taxable regardless of whether it's salted or not.

Trail mixes

Products known as trail mixes that contain combinations of cereals, nuts, seeds, dried fruit, or any other edible product are taxable at grocery stores in Canada.

Chocolate and candy

Candies, confectionery that may be classed as candy, and any goods sold as candies are taxable whether naturally or artificially sweetened.

That includes:

  • chocolate bars and candy bars
  • chocolate cups with a sweetened filling
  • chocolates containing fruits, toffees, caramel, fondant, and liqueurs
  • nuts, popcorn, raisins, apples, and other items coated or treated with candy, chocolate, molasses, sugar or syrup
  • fruit pastilles, Turkish delights and similar jelly sweets
  • marzipan sweets
  • marshmallows and cream sweets
  • sesame bars
  • chewing gum
  • candy floss
  • chocolate-covered coffee beans

Pudding

Pudding, flavoured gelatine, mousse, flavoured whipped dessert product, and any other products similar to pudding are taxable when sold in single servings.

A single serving of pudding and similar products is less than 425 grams.

Popsicles

Popsicles (sometimes called ice lollies), juice bars, freezies, flavoured, coloured or sweetened ice waters, and similar products are taxable whether frozen or not.

These items are taxable when containing fruit juice and/or fruit pieces, regardless of the percentage of fruit juice.

Ice cream

Ice cream, ice milk, sherbet, frozen yogurt and frozen pudding are taxable in Canada when packaged in single servings.

Examples of these products are:

  • ice cream sandwiches
  • ice cream bars
  • tofu-based frozen snacks
  • frozen yogurt bars

Non-dairy substitutes or any product that contains ice cream, ice milk, sherbet, frozen yogurt or frozen pudding are also included.

A single serving is a pack or unit of less than 500 millilitres or less than 500 grams.

Juice

Fruit juices and fruit-flavoured beverages (excluding milk-based beverages) with less than 25% by volume of a natural fruit juice are taxable regardless of serving size or packaging.

Fruit juices and fruit-flavoured beverages (excluding milk-based beverages) with 25% or more by volume of a natural fruit juice are only taxable when sold in a single serving.

Also, frozen fruit juice beverage concentrates are taxable if the percentage of natural fruit juice is less than 25% by volume.

The federal government considers a beverage of less than 600 millilitres to be a single serving.

Iced tea

Iced tea beverages, whether fruit-flavoured or not, are taxable when sold in a single serving.

A beverage of less than 600 millilitres is considered to be a single serving by the federal government.

Syrups, crystals, and powders for beverages

Products including syrups, crystals, powders, and flavourings that are added to water to make a fruit-flavoured beverage and contain little or no actual fruit juice are taxable.

Carbonated beverages

Carbonated beverages are taxable at grocery stores in Canada.

That includes:

  • carbonated soft drinks such as ginger ale and cola
  • carbonated mixers such as tonic and soda water
  • carbonated non-alcoholic malt beverages
  • carbonated water (including carbonated mineral water), whether flavoured or otherwise

Words like sparkling, soda water and effervescent refer to carbonation and can help you figure out that the product is taxable.

Wines, beer, and other alcoholic beverages

Wine, spirits, beer, malt liquor or other alcoholic beverages are taxable in Canada.

That also includes de-alcoholized beer and de-alcoholized wine. That's because the products are still considered to be beer and wine.

This article's cover image was used for illustrative purposes only.

  • Senior Writer

    Lisa Belmonte (she/her) is a Senior Writer with Narcity Media. After graduating with a Bachelor of Journalism from Toronto Metropolitan University (formerly Ryerson University), she joined the Narcity team. Lisa covers news and notices from across the country from a Canada-wide perspective. Her early coverage of the COVID-19 pandemic earned Narcity its first-ever national journalism award nomination.

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