Canada Announces Holiday Tax Break to Support Families and Boost Economy
Canada’s Minister of Environment and Climate Change Steven Guilbeault announced that Canada will give a tax break during the holidays.
Starting on December 14, Canada is giving a tax break to all Canadians. With a GST/HST exemption across the country, Canadians will be able to buy essentials like groceries, snacks, children’s clothing, and gifts—all tax-free.
This tax break will apply to:
- Children’s clothing and footwear, car seats, and diapers
- Children’s toys, such as board games, dolls, and video game consoles
- Prepared food, including vegetable trays, pre-made meals and salads, and sandwiches
- Restaurant meals, whether dine-in, takeout, or delivery
- Snacks, including chips, candy, and granola bars
- Beer, wine, cider, and pre-mixed alcoholic beverages below 7% alcohol by volume
- Books, print newspapers, and puzzles for all ages
- Christmas trees
This tax break is projected to last until February 15, 2025. This will deliver meaningful savings for Canadians by making essentially all food GST/HST free, providing real relief at the cash register.
This initiative aims to ease the financial burden on families and stimulate the economy during one of the busiest shopping periods of the year.
The holiday tax break will temporarily reduce the Goods and Services Tax (GST) on essential items and select consumer goods from December 14, 2024, to January 15, 2025.
The government estimates that the initiative will save the average Canadian household up to $200 during the holiday period. Small businesses are also expected to benefit from increased consumer spending, with retail associations projecting a boost in sales of up to 15%.
The tax break will be automatically applied at the point of sale for eligible items, requiring no additional action from consumers. Retailers across the country are being briefed on the implementation process to ensure a seamless experience for shoppers.
