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Here Are The Foods You’ll Be Saving On Thanks To The Canadian Tax Break

by Mira Nabulsi
updated November 22, 2024
Tax Break
Pexels | Gustavo Fring

It’s no secret that Canadians feel like life has been getting way too expensive lately. Many of us are finding it harder and harder to keep up with household costs, and with the holidays coming up, many Canadians are feeling the pressure. Well, in an effort to curb the financial pinch, Justin Trudeau recently announced a new tax break on many essentials, so you might actually be able to save a few bucks this year.

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This tax break will run from December until February 2025. In addition to saving on thousands of goods, millions of eligible Canadians will also see extra cash in their back accounts in the new year. Read on for everything you need to know about Trudeau’s latest GST/HST tax break and the rebate program.

How are Canadians getting extra money in 2025?

Justin Trudeau’s government announced on Thursday that they are putting “more money in your pocket.” They plan on doing this in two ways: removing tax from essentials like groceries and kids’ clothing and giving eligible Canadians a $250 cheque in early Spring 2025.

What essentials are going tax-free in Canada?

According to the government website, the following essentials will be tax-free:

“This new tax break will apply to:

  • Prepared foods, 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 per cent ABV.
  • Children’s clothing and footwear, car seats, and diapers.
  • Children’s toys, such as board games, dolls, and video game consoles.
  • Books, print newspapers, and puzzles for all ages.
  • Christmas trees.”

    • For a detailed breakdown, visit the Government of Canada website here.

    When will the tax break take effect?

    The tax break will begin on December 14, 2024, and is predicted to last until February 15, 2025. By making things like food, diapers and children’s toys GST/HST free, the Trudeau government hopes to help us save a little cash during these difficult times.

    Who is eligible for the $250 rebate?

    The “Working Canadians Rebate” is eligible for all Canadians nationwide who earned up to $150,000 in 2023. These individuals will receive a $250 cheque in their bank account or mailbox starting in early spring 2025.
    “With the Working Canadians Rebate, we are putting money directly into the pockets of the middle-class – those who have worked hard to beat inflation. This will give 18.7 million Canadians that extra help to buy what they need,” the government’s website states.

    Why is the government giving money back to Canadians now?

    “Families will be spending quality time together over the coming weeks,” the statement on the Government website reads. “Some will light Christmas trees and buy gifts. Some will share a meal with family and friends. Some might just make hot chocolate, order some takeout, and stay in for a movie night. With today’s announcement, we’re making life a bit easier, so Canadians have more money in their pocket for the things they want.”

    This tax break will hopefully make shopping for the holidays a little easier for millions of Canadians!