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Most food tax in Ontario is zero, because basic groceries carry 0% HST. Snacks, candy, pop and hot prepared food are the exceptions and carry the full 13%. So a $15 bag of chips and a bottle of pop costs $16.95, while $15 of milk and bread costs $15.
How does food tax work in Ontario?
Ontario’s HST is 13%, made up of 5% federal and 8% provincial. The CRA zero-rates basic groceries in every province and territory. That means the tax applies at 0%, not that the store has left it out by accident.
The test the CRA uses is practical. A product is food or a drink if an average shopper would recognise it as one and buy it in the ordinary course of grocery shopping. From there, the rules split items into zero-rated and taxable, and the split is not always where you’d guess.
Which foods carry HST and which don’t?
Here are examples from the CRA’s own lists.
| Type | 0% (basic groceries) | 13% HST in Ontario |
|---|---|---|
| Snacks | Most crackers, unpopped popcorn kernels | Chips, puffs, granola bars, trail mix, salted nuts |
| Drinks | Milk, juice with 25% or more juice, plain bottled water in larger sizes, coffee beans, tea leaves | Carbonated drinks, sparkling water, fruit drinks under 25% juice, single-serve bottled water |
| Sweets | Baked goods sold in packages of six or more | Chocolate bars, candy, single-serving ice cream, baked goods sold in fewer than six |
| Prepared food | Frozen uncooked pizza, bread without sweet fillings | Hot food from a heated case, catered platters, vending machine food |
Some of these come down to a count. Six donuts or muffins in a package are zero-rated, while five aren’t. Single-serve water is taxed, but a multipack or a bottle over 600 mL isn’t.
What does a mixed grocery cart cost?
You buy $85 of staples (milk, bread, eggs, produce) and $15 of chips and pop. The staples carry no tax. The snacks carry 13%.
The GST and HST calculator confirms the taxable part: $15.00 plus $1.95 of HST is $16.95. Your whole cart is $101.95, and the tax is 1.95% of the $100 you spent. Not the 13% people often assume.
Want to check a receipt after the fact? The reverse sales tax calculator works backward from a total. Tracking the weekly grocery spend? Try the budget calculator.
What about restaurants and takeout?
Restaurant meals and hot food from a heated case are taxable, so HST applies at 13%. There’s one carve-out. Under an Ontario point-of-sale rebate, qualifying prepared food and drinks sold for $4.00 or less in total, before tax, have the 8% provincial part rebated at the till, so the seller collects only 5%. The CRA gives a cheeseburger and diet soda under $4.00 as an example.
Above $4.00, the full 13% applies to the whole bill. We haven’t checked whether every kind of takeout order counts as qualifying prepared food, so ask the seller if you’re unsure.
Common mix-ups
“Isn’t all food tax-free?” No. Candy, pop and snack foods are taxed, and granola bars count as snacks.
Another one: the tax on a single item looks tiny, so nobody notices it. It isn’t tiny across a year. If you spend $30 a week on taxable snacks, that’s $3.90 of HST a week, or $202.80 over 52 weeks.
And what if your income is low and groceries stretch the budget? Federal help exists in the GST/HST credit, and the GST/HST credit calculator gives an estimate. It’s not a grocery rebate, though, and it doesn’t depend on what you buy.
Where the numbers come from
Ontario’s 13% HST rate and the grocery rules come from the Canada Revenue Agency, including its pages on basic groceries, snack foods, beverages and the prepared food rebate, read in September 2026. The example totals come from this site’s calculators. We aren’t connected to the CRA or any government, and product rulings can change, so check the current CRA page for an item you’re unsure about.
Frequently asked questions
Is there tax on groceries in Ontario?
Basic groceries such as milk, bread and produce carry 0% HST. Snacks, candy, carbonated drinks and hot prepared food carry 13%.
Is HST charged on restaurant meals in Ontario?
Yes, at 13%. A rebate of the 8% provincial part applies at the till to qualifying prepared food and drinks totalling $4.00 or less before tax.
Why are chips taxed but crackers aren't?
The CRA lists most crackers as zero-rated basic groceries and chips, puffs and similar snacks as taxable.
Are baked goods taxed in Ontario?
It depends on the count. Packages of six or more items such as donuts or muffins are zero-rated, and fewer than six are taxable.
What is the HST rate in Ontario?
It is 13%, made up of 5% federal GST and 8% provincial tax.
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Information only. This page is general information, not tax, legal or accounting advice. Tax-Services.ca is an independent publisher: we don't prepare or file tax returns or offer tax services, and we have no connection with the CRA, Revenu Québec, any government or any company named on this page. Check the figures that matter with an official source or a qualified professional.