The past few years have been tough, with prices going up on almost everything. While inflation is slowing and interest rates are dropping, many Canadians still feel the pinch in their household budgets.
Although the government can’t control prices at the checkout, it can help put more money back into your pocket to make life a little easier.
Tax-Free Essentials Starting December 14, 2024Starting December 14, Canadians will see some big savings with a new tax break. A GST/HST exemption will make many everyday essentials tax-free, including:
Prepared foods like veggie trays, pre-made meals, salads, and sandwiches.
Restaurant meals (dine-in, takeout, and delivery).
Snacks like chips, candy, and granola bars.
Alcoholic beverages under 7% ABV, such as beer, wine, cider, and pre-mixed drinks.
Kids’ essentials including clothing, footwear, car seats, and diapers.
Children’s toys like board games, dolls, and video game consoles.
Books, newspapers, and puzzles for all ages.
Christmas trees for your holiday celebrations.
This tax break will last until February 15, 2025, giving Canadians meaningful savings during a time when costs are often higher.
Working Canadians Rebate: $250 in Your Pocket Starting in early spring 2025, Canadians who worked in 2023 and earned up to $150,000 will receive a $250 rebate directly in their bank account or mailbox. This new Working Canadians Rebate is designed to help middle-class Canadians and families who’ve worked hard to manage rising costs. About 18.7 million Canadians will benefit from this extra financial boost.
Helping Families Celebrate the Holidays As families gather over the holidays—whether for Christmas, sharing meals, or cozying up for a movie night—we want to make life a little easier. These measures will ensure Canadians have more money for the things they need and enjoy.
Quotes from Leaders “Our government can’t control prices, but we can help Canadians keep more of their hard-earned money. With a tax break for all Canadians and the Working Canadians Rebate, we’re making it easier for you to afford the things you need and save for the things you want.”— The Rt. Hon. Justin Trudeau, Prime Minister of Canada
“The holiday season can be expensive for families. With new tax relief on groceries, essentials, and a rebate for working Canadians, we’re reducing costs when Canadians need it most. This is about helping you celebrate with loved ones and start the new year with a bit of extra money in your account.”— The Hon. Chrystia Freeland, Deputy Prime Minister and Minister of Finance
The government urges Parliament to pass this legislation quickly so Canadians can start benefiting as soon as possible.
Starting December 14, 2024, GST/HST will be completely removed on the supply or importation of qualifying goods. This tax relief will remain in place until February 15, 2025. A full list of eligible goods and additional implementation details can be found [here].
In addition, the Working Canadians Rebate will provide financial support to eligible Canadians. Individuals who claimed tax credits for Canada Pension Plan (CPP)/Quebec Pension Plan (QPP) contributions or Employment Insurance (EI)/Quebec Parental Insurance Plan (QPIP) premiums—or who reported income from EI or QPIP benefits—with a net income below $150,000 in 2023 will qualify. Payments will begin rolling out in spring 2025, offering extra cash to working Canadians. Learn more about the rebate [here].
Making Life More Affordable for Families and Individuals The government continues to introduce initiatives aimed at reducing costs for Canadians. Here are a few of the key programs already making a difference:
National School Food Program: With $1 billion allocated over five years, this program will provide meals to up to 400,000 more children annually. Participating families with two children can save an average of $800 per year on groceries, with low-income households seeing the greatest benefit.
Canada Child Benefit (CCB): Offering up to $8,000 per child in 2024-25, the CCB helps families manage the costs of raising children. Indexed to inflation, this benefit has lifted hundreds of thousands of children out of poverty since its introduction in 2016.
$10-a-Day Child Care: The Canada-wide affordable child care system saves families up to $14,300 per child annually. Fees for regulated child care have already been reduced to an average of $10-a-day or less in many provinces and territories, with reductions of 50% or more in all others.
Canadian Dental Care Plan: Families earning under $90,000 can save around $730 per year through this plan, which currently provides dental coverage for children under 18. The program ensures families don’t have to choose between oral health care and putting food on the table.
These efforts reflect the government’s commitment to easing financial burdens and improving the quality of life for Canadians across the country.
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