Your 2 Month Tax Break Is Coming Soon: GST/HST Waiver In Effect From December 14

From December 14, 2024, to February 15, 2025, the GST/HST will be waived on many everyday purchases, including groceries, children’s clothing and toys, and books.

For newcomers to Canada, this temporary relief could make a significant difference as you adjust to the cost of living in a new country. Here’s what you need to know about the tax break and how to make the most of it.

What’s the GST/HST Holiday Tax Break?

This initiative is designed to provide financial relief during the holiday season and into the new year by removing GST/HST from a wide range of goods. For most Canadian residents, it means immediate savings at the checkout on items you’re already planning to buy.

For instance:

• A family spending $2,000 on eligible items during this period could save $100 in GST.
• In Ontario, Newfoundland and Labrador, Nova Scotia, New Brunswick, and Prince Edward Island (where HST applies), families could save up to $260 on that $2,000 spend.

This tax relief is expected to provide $1.6 billion in savings across Canada, helping families stretch their budgets a little further these holidays.

How Does The Tax Break Work?

During the tax break period, businesses are required to remove GST/HST from qualifying goods at the point of sale. That means you’ll see the savings reflected directly on your receipt. There’s no need to apply for anything or keep track of your purchases—it’s automatic.

Qualifying items include:

• Groceries: Almost all food items, including prepared foods and beverages, will be GST/HST-free.
• Holiday essentials: Gifts like children’s toys, books, and clothing.
• Dining out: Restaurant meals and takeout are also included.

For newcomers, these savings could be particularly meaningful as you manage the costs of settling into life in Canada.

Scroll down for a complete list of inclusions.

Why Is This Important for Newcomers?

Adjusting to life in a new country comes with a unique set of challenges, not least of which is managing your finances. Canada’s cost of living is high, and it’s likely higher than what you’re used to. Expenses tend to pile up during the winter holidays.

This tax break can provide some breathing room, whether you’re hosting your first Canadian holiday dinner, buying warm clothing for your children, or simply trying to stick to your budget.

Beyond financial relief, this tax break offers an opportunity to learn more about how Canada’s tax system works. Understanding the GST/HST—what it is, when it’s applied, and what items are exempt—is a small but important step in becoming financially savvy in Canada.

Making the Most of the Tax Break

For newcomers, this is a great opportunity to stock up on essentials without the extra tax burden. Groceries, warm clothing for your children, and even gifts for friends and family are all included in the tax break.

If you’ve been planning to make bigger purchases—like children’s car seats, toys, or holiday decorations—this is the perfect time to save a little extra.

At the same time, keep in mind that this relief is temporary. The tax break ends on February 15, 2025, so plan your purchases accordingly.

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List of GST/HST-Exempt Items For The 2024/2025 GST/HST Holiday

Children’s Essentials

• Children’s Clothing: Includes baby garments like bibs and receiving blankets, clothing up to size 16 (girls) or size 20 (boys), and accessories like socks, hats, mittens, and scarves. Excludes sports uniforms, costumes, and certain specialty items.
• Children’s Footwear: Footwear designed for children with insoles measuring 24.25 cm or less. Excludes sports shoes or specialized footwear.
• Children’s Diapers: Covers diapers, inserts, training pants, and rubber pants for babies or children.
• Children’s Car Seats: Includes booster seats and car restraint systems meeting Canadian safety standards.

Reading Materials

• Print Newspapers: Regularly published newspapers containing general interest content. Excludes digital publications, magazines, fliers, and shoppers.
• Printed Books: Includes traditional books, scripture, and audio recordings of books. Excludes magazines, workbooks, brochures, catalogs, or books designed for drawing, clipping, or pressing.

Holiday Decorations

• Christmas Trees: Includes natural or artificial Christmas trees and similar decorative items.

Food and Beverages

• Groceries and Snacks: Includes most food and beverages for human consumption, excluding spirits but including wine, beer, and certain premixed drinks. Covers items like snacks, candy, chips, granola products, ice cream, baked goods, and prepared salads or platters.
• Prepared Foods: Covers food heated for consumption, catered meals, or items sold in restaurants, coffee shops, or take-out establishments.
• Bottled and Dispensed Water: Includes bottled water and water dispensed at permanent supplier locations.

Children’s Toys and Games

• Children’s Toys: Includes toys for children under 14, such as board games, dolls, plush toys, construction toys, and toy replicas like dollhouses or cars.
• Jigsaw Puzzles: Applicable to puzzles for all ages.

Video Games and Consoles

• Includes video game consoles, controllers, and physical game media like cartridges or discs.

See the Government announcement here.