The holiday season is here, and so is some good news for Canadian shoppers and homebuyers! Starting this week, the GST/HST holiday tax break goes into effect, offering temporary relief on certain purchases and services. This limited-time initiative is expected to provide financial relief to Canadians while stimulating the economy. Let’s dive into the details of what’s covered and how you can make the most of this tax break.
What is the GST/HST Holiday?
The GST/HST holiday is a government initiative aimed at reducing the financial burden on Canadians by waiving the Goods and Services Tax (GST) or Harmonized Sales Tax (HST) on specific goods and services. This tax break is in effect for a limited period, typically spanning a few weeks during the holiday season, and applies to eligible purchases.
Children’s goods
Clothing, diapers, car seats and toys for kids are all covered under the new temporary tax break.
For clothing, that includes baby clothes, including bibs and blankets; children’s clothes up to girls’ size 16 and boys’ size 20; children’s socks, hats, scarves and gloves; shoes smaller than 24.25 cm; and sports clothing like jerseys, leotards, ski jackets and recreational swimsuits.
What’s not included: any specialized clothing or shoes designed exclusively for sports (like wetsuits, soccer cleats, skates, ski boots, etc.), adult clothing purchased for a child, costumes or makeup and jewelry.
Most diapers are included in the tax break, including cloth and disposable diapers, diaper inserts or training pants — however, adult diapers are not included (they are already exempt from GST/HST).
The same goes for children’s car seats, which includes all boosters and seats that meet federal safety standards but does not include car seats that are built as part of a stroller or carrier combination.
Video games
Video game consoles, controllers and video games are included in the tax break as well, though only physical copies of games (like in CDs or cartridges) qualify.
Books
For the most part, published printed books (both hardcover and softcover editions), magazines and periodicals are covered under the tax break.
Newspapers
Printed newspapers also qualify for the tax break but excludes digital versions of those publications.
Christmas trees
Both natural and artificial Christmas trees, as well as “similar decorative trees,” qualify for the tax break, according to the government.
Food and drinks
All restaurant meals — including dine-in, takeout and delivery — are covered by the tax holiday. That also covers prepared foods, pre-made meals and catering.
How Much Can I Save?
The amount you save during the GST/HST holiday depends on your spending habits and the types of purchases you make.
⦁ Stocking up on toys, books, and processed foods? You could save several dozen dollars, especially if you’re planning for a festive holiday season with plenty of shopping.
⦁ Sticking to basic groceries and a low-key holiday? Your savings may be minimal since the HST is already exempt on essential items like fresh produce, bread, and milk.
For those making big-ticket purchases—such as appliances or home renovations—the savings could be substantial, amounting to hundreds or even thousands of dollars. To maximize your benefits, focus on eligible items that are part of your larger financial goals, like home upgrades or energy-efficient products.
