There are no taxes on certain groceries in Canada and these products can help you save money
There are a lot of tax-free groceries in Canada.
Buying these products while shopping at grocery stores in Canada won't make your bill more expensive since there's no tax added at the checkout.
The federal government considers "basic groceries" to be zero-rated which means there is no GST or HST on those items.
Whether or not you already know that there are no taxes on certain groceries, you might not know all of the food and drink products you don't pay tax on in Canada.
That's because so many items are considered "basic groceries," including some unexpected products.
If you want to shop strategically and only get products that don't have taxes to make your grocery bill cheaper, here are some tax-free groceries you can get in Canada.
Fruits and vegetables
Fresh, frozen, canned and vacuum-sealed fruits and vegetables are tax-free.
Mixed, cut vegetables that are packaged and promoted as a "stir-fry" or "chop suey mix" and mixed vegetable sprouts are also tax-free.
Meat
Fresh meat, poultry and fish is tax-free in Canada.
Dairy
You don't pay GST or HST on most milk products.
That includes unflavoured whole, skimmed or partly skimmed white milk in all serving sizes and packages.
Flavoured milk like drinkable yogurt is only tax-free when sold in pre-packaged multiples of single servings or in containers that are bigger than a single serving.
The federal government considers a beverage that's less than 600 millilitres to be a single serving.
Also, there is no tax on eggs in Canada.
Bread
Bread products like bagels, English muffins, croissants, scones, tea biscuits, and bread rolls that don't have sweetened fillings or coatings are tax-free in Canada.
That also includes tortillas, taco shells, soft pretzels, and pie crusts.
Dough
Doughs of all kinds are tax free, including puff pastry, pizza dough, cookie dough, and more.
Crackers
When you buy crackers at the grocery store, most of the products are tax-free — but graham crackers are excluded.
These are the crackers that have no tax applied:
- soda crackers
- salted crackers
- table water crackers
- cream crackers
- rice crackers
- crispbread
- snacking crackers (including vegetable, bacon or cheese flavoured)
- wheat thins
- toasts
- breadsticks
- rusks
- unsweetened rice cakes
Cereal
Breakfast cereals are tax-free in Canada.
That includes granola products that are sold as breakfast cereals.
Also, products sold as breakfast cereals are zero-rated basic groceries even if similar to taxable snacks like Oreo or Chips Ahoy cereal.
Baking items
You can get baking ingredients with no added tax. That includes:
- bulk industrial chocolate
- chocolate chips
- baker's chocolate
- liquid chocolate icing
- edible cake decorations packaged and sold as cake decorations
- fondue chocolate
- chocolate spread
- angelica and cocktail cherries
Salads
While prepared salads are taxable, a package that contains the ingredients for a salad — like lettuce, croutons and dressing in separate containers — and isn't pre-mixed is tax-free.
Frozen pizza
Frozen pizzas are tax free because even though you're not making it yourself, it requires enough additional preparation — cooking — before it can be eaten.
It's a pre-packaged food but the pizza isnt likely to be cooked or served on the cardboard tray that comes with the package.
Frozen sandwiches
Since frozen sandwiches aren't ready to eat items (which are taxable) and you have to do additional preperation, that means they are tax free.
Savoury pies
Savoury pies and meat pies are tax-free.
Condiments
Condiments like ketchup, mustard and relish are tax-free at grocery stores in Canada.
Popcorn
Most snacks are taxable but unpopped popcorn kernels, including microwave popcorn kernels are tax free. Popcorn kernels can be salted or otherwise.
Nuts and seeds
Unsalted nuts or unsalted seeds are zero-rated unless they're a snack mixture like trail mix.
Also, mixtures of nuts in their natural state (not seasoned, roasted or shelled) are tax-free.
Coffee beans
If you want to save money on coffee, you might consider buying coffee beans and griding them yourself either at the grocery store or at home.
That's because whole coffee beans are tax-free but ground coffee isn't.
Bottled water
Plain bottled water sold in a pre-packaged pack of two or more single-serving bottles or in a bottle that exceeds a single-serving is tax free.
Also, syrups, crystals, powders and flavourings for making beverages are tax free, excluding fruit flavours.
Juice
Non-carbonated fruit juice and fruit-flavoured beverages with 25% or more natural fruit juice (like apple, orange and fruit combo juices) are tax-free.
But only when 600 millilitres or more or prepackaged in multiples that are each less than 600 millilitres.
Cereal bars
Snack bars are taxable except for cereal bars and muffin bars that are sold in boxes containing six or more bars.
Cereal bars and muffin bars usually have ingredients similar to granola bars (like a mixture of cereals and honey or syrup). These bars may have a muffin-like texture or a fruit filling in a baked crust.
This also includes bars that are made from commercial cereals you'd find in the cereal aisle and other ingredients like fruit.
Meal replacement and nutritional supplement bars
Bars that qualify as meal replacements or nutritional supplements are considered to be zero-rated basic groceries — tax-free — except when sold from a vending machine.
That also includes energy and protein bars that are sold as meal replacements or nutritional supplements.
This article's cover image was used for illustrative purposes only.
