There is no tax on eggs in Ontario when you buy them raw in the shell at a grocery store. Fresh shell eggs are zero-rated basic groceries under federal law, which means the HST rate on them is 0% and the shelf price is what you pay at the till. That treatment holds for every standard carton of raw eggs, whatever the size, brand, or label. The tax picture only shifts when eggs are heated, sold ready to eat, or sold through channels like vending machines and catering.
Raw Shell Eggs at the Grocery Store
Ontario’s HST combines a 5% federal portion and an 8% provincial portion into a single 13% rate on most goods and services. Basic groceries are the big exception. The federal Excise Tax Act designates most food and beverages for human consumption as “zero-rated” under Section 1 of Part III of Schedule VI, and the Canada Revenue Agency lists eggs among the common examples.1Department of Justice Canada. Excise Tax Act RSC 1985 c E-15 – Schedule VI, Part III2Canada Revenue Agency. Basic Groceries
A carton of raw shell eggs is one of the clearest zero-rated items in the store. A half-dozen, a standard dozen, or a flat of thirty from a warehouse club all carry 0% HST. Canada Grade A and Canada Grade B eggs are both zero-rated. Labels like organic, free-range, omega-3, or pasture-raised don’t change anything. Duck and quail eggs sold raw in their shells also qualify, because the rule covers food for human consumption broadly rather than singling out chicken eggs.
The same treatment follows the eggs outside the supermarket. A carton of raw shell eggs bought at a farmers’ market or directly from a producer at the farm gate is still a basic grocery and still carries no HST.1Department of Justice Canada. Excise Tax Act RSC 1985 c E-15 – Schedule VI, Part III
Liquid, Frozen, and Cold Cooked Egg Products
Eggs out of the shell can still be tax-free. Cartons of liquid whole eggs, liquid egg whites, and frozen egg products are food for human consumption and don’t fall into any of the taxable exceptions, so they carry 0% HST when sold cold or frozen from a refrigerated section.2Canada Revenue Agency. Basic Groceries
Hard-boiled eggs packaged and sold cold from a refrigerated shelf are generally zero-rated too, because the CRA treats cooked foods sold cold from unheated shelves as basic groceries. There’s a catch. If those same hard-boiled eggs are sold at an establishment where 90% or more of food sales are taxable items, such as a sandwich shop or fast-food outlet, they become taxable along with everything else that shop sells.2Canada Revenue Agency. Basic Groceries
When Eggs Become Taxable
Zero-rating disappears the moment eggs are heated or prepared for immediate eating. The CRA excludes food heated for consumption from the basic groceries category. A hot breakfast sandwich with egg from a deli counter, a quiche sold warm from a heated cabinet, or scrambled eggs from a restaurant buffet all attract the full 13% HST, whether you eat on-site or take the order home.2Canada Revenue Agency. Basic Groceries
Vending Machines and Catering
Two channels override zero-rating no matter what the product is. The Excise Tax Act explicitly excludes food or beverages sold through a vending machine, so a packaged egg snack from a vending machine carries the 13% HST built into the price, even if the identical product would be tax-free on a grocery shelf.1Department of Justice Canada. Excise Tax Act RSC 1985 c E-15 – Schedule VI, Part III
Catering follows the same rule. Any food supplied under a catering contract or sold alongside catering services is taxable at the full rate, regardless of whether the individual items would be zero-rated in a grocery store. An egg platter ordered through a caterer for an office meeting carries 13% HST.1Department of Justice Canada. Excise Tax Act RSC 1985 c E-15 – Schedule VI, Part III
Chocolate Eggs and Candy
Chocolate Easter eggs, Kinder eggs, and similar candy-coated products are not groceries in the eyes of the tax code. Confectionery, chocolate, and anything sold as candy are listed as taxable exceptions to zero-rating, so they carry the full 13% HST every time.1Department of Justice Canada. Excise Tax Act RSC 1985 c E-15 – Schedule VI, Part III The word “egg” on the packaging doesn’t matter; the product category does, and chocolate sits squarely in confectionery.
If a Store Charges HST on Raw Eggs
If 13% HST shows up on a carton of raw shell eggs on your receipt, the store made a coding error. This happens occasionally when point-of-sale systems are set up incorrectly. Raise it at the customer service desk first; the correction is usually straightforward. Ontario retailers are acting as collection agents for the government and aren’t entitled to keep tax charged on zero-rated items.
If the store won’t fix the charge, you can report it to the Canada Revenue Agency, which has authority over GST/HST compliance and can look into businesses that systematically overcharge on zero-rated groceries. The dollar amount on a single carton is small, but flagging it may catch a coding problem that’s hitting every other customer buying the same product.