Tax-Free "Food"

In my Practice Management class, we talked about taxable goods. Did you know that food is non-taxable? ...but there is a catch, because most "foods" that you would label as "food" actually don't qualify. Only real food is non-taxable. Chips, pop, candy, frozen dinners, frozen pizzas, packaged snacks, cookies, etc, are not considered to be "food" and are thus taxed.  This is an example of how eating healthy can be much cheaper that eating poorly; you don't pay tax on real food!

Non-taxable products (in Canada):

• basic groceries such as flour, sugar, spices, breads, cereals, eggs, butter, margarine, cheese, peanut butter, jam, honey, fruits, vegetables, milk, and yogurt
• prepared foods sold by an eating establishment for $4 or less
• children's clothing (including diapers)
• footwear costing $30 or less
• feminine hygiene products
• newspapers
• drugs and medicine sold under a doctor's prescription
• goods designed solely for people with physical disabilities
• vitamins and minerals. 

...and that's it.  No junk food allowed. All packaged goods are subject to taxation.

You can print out this list and take it with you next time you are grocery shopping. Try to only buy "food"; you'll save both money (tax-free!) and your health (processed-free!).