Is There Tax on Groceries in BC? Taxable and Tax-Free Items

Most groceries in British Columbia carry no sales tax at all. The province exempts nearly all food for human consumption from its 7% Provincial Sales Tax, and the federal government zero-rates basic groceries so no GST applies either. Where you do see tax on groceries in BC, it is usually the 5% federal GST on a snack, a prepared item, or a single-serving treat. A smaller group of items, mainly soda and alcohol, gets hit with PST as well.

The Two Taxes Behind Your Receipt

Two separate sales taxes operate at a BC checkout. The federal Goods and Services Tax is 5% on most goods and services across Canada. The Provincial Sales Tax is normally 7% on retail purchases.¹

Neither rate hits your grocery bill the way the sticker suggests. On the federal side, “basic groceries” are zero-rated under the Excise Tax Act, so GST on them is 0%, and specific categories of food and beverages are pulled out of that zero-rating and taxed at the full 5%.²

On the provincial side, BC exempts all food products for human consumption from PST, with only three exceptions: liquor over 1% alcohol (taxed at 10% PST), soda beverages (taxed at 7% PST), and food containing cannabis products.³ The provincial exemption is broader than the federal one. Chips, candy, and ice cream are all PST-exempt in BC because they are still food for human consumption.⁴

Groceries That Pay No Tax

The largest share of a typical cart pays nothing. If you are buying ingredients to cook at home, you are almost certainly paying no GST and no PST.

Produce: fresh, frozen, canned, and vacuum-sealed fruits and vegetables
Meat and seafood: fresh meat, poultry, and fish
Dairy and eggs: milk, cheese, yogurt, butter, and eggs
Bread products: bagels, English muffins, croissants without sweetened filling or coating, and bread rolls
Pantry staples: flour, sugar, cooking oil, spices, seasonings, canned goods, coffee, and tea

These items carry 0% GST and no PST.² A bag of rolled oats sold as breakfast cereal is zero-rated. The same oats pressed into a granola bar are not.

Snacks, Candy, and Prepared Foods (5% GST)

The federal zero-rating has a long list of exclusions. These foods remain PST-exempt in BC, but they lose their zero-rated GST status and get taxed at 5%. This is where most of the tax on a grocery receipt comes from.

Chips and savoury snacks: potato chips, corn chips, cheese puffs, popcorn, and brittle pretzels, though not crackers or breakfast cereals⁵
Candy and confectionery: chocolate, candy floss, chewing gum, and nuts or fruit coated in chocolate, honey, or syrup⁵
Granola bars and snack mixtures: any granola product not sold primarily as breakfast cereal, and trail mix or similar combinations of cereals, nuts, seeds, and dried fruit⁶
Salted nuts and seeds: including nuts flavoured with seasoning blends that contain salt. Unsalted nuts are zero-rated.⁶
Fruit snacks: fruit bars, fruit rolls, and similar fruit-based snack foods⁵
Carbonated beverages: all of them, regardless of sugar content⁵

Heated food loses its zero-rated status too. A rotisserie chicken sold hot from the deli attracts 5% GST. The same chicken sold cold from a refrigerated shelf is zero-rated. The temperature at the point of sale is what matters. Prepared food sold under a catering contract is also taxable at 5% GST, even when individual items would normally be zero-rated on their own.²

None of these items attract PST. Even a hot deli meal costs 5% GST and zero PST in BC.⁷

The Bakery Six-Item Rule

Cakes, muffins, pies, cookies, doughnuts, brownies, croissants with sweetened filling or coating, and similar baked goods are taxable at 5% GST when sold as single servings in quantities of fewer than six. Buy six or more single servings and the entire purchase becomes zero-rated. They do not have to match: two bagels, two muffins, and two doughnuts count as six single servings and qualify.²

Plain bread products like bagels, English muffins, and croissants without sweetened filling or coating are always zero-rated, regardless of quantity.⁵

The Ice Cream 500-Millilitre Rule

Ice cream, frozen yogurt, sherbet, and similar frozen desserts are taxable at 5% GST when packaged or sold in single servings. The CRA defines a single serving as a package or unit under 500 mL (or under 500 grams by weight).² An individual ice cream bar or a small tub under 500 mL is taxable. A two-litre container is zero-rated.

Buying multiples does not help here. A box of twelve individually wrapped ice cream sandwiches is still taxable if each portion is under 500 mL, because each one is packaged as its own single serving.² What matters is whether the container holds 500 mL or more as one undivided unit. A two-litre tub with internal dividers but a single shared lid still qualifies as zero-rated. No PST applies to ice cream in any format.⁴

Soda Beverages (12% Combined)

Soda is the big exception to BC’s food exemption. Since April 1, 2021, carbonated and effervescent drinks containing any sweetener are subject to 7% PST on top of the 5% GST they already attracted, for a combined 12%.⁸

The definition covers any carbonated or effervescent drink sweetened with sugar, honey, maple syrup, fruit juice, artificial sweeteners like aspartame, or natural alternatives like stevia. Kombucha counts, because its carbonation is naturally produced through fermentation.⁸

Several drinks that look similar are not classified as soda beverages and remain PST-exempt:

Plain bottled water, still or carbonated, with no sweeteners
Sparkling flavoured water, if it contains no sweeteners of any kind
Still fruit juice (non-carbonated)
Dealcoholized beer, wine, or cider at 1% alcohol or less
Frozen sweetened drinks like Slurpees, unless they have been carbonated or had gases added⁸

Alcohol (15% Combined)

Alcoholic beverages with more than 1% alcohol by volume attract the highest PST rate in the grocery store: 10%. That covers beer, wine, ciders, spirits, and mixed drinks. Add 5% GST and you pay 15% in sales tax on any alcohol purchase. The 10% PST also applies to extra charges folded into the selling price, like chill charges, though not to bottle or can deposits.⁹

Dealcoholized beer, cider, and wine at 1% or less alcohol are treated as regular food for human consumption and are exempt from PST.⁴

Non-Food Items on the Same Receipt

Grocery stores sell plenty of items that are not food for human consumption, and those follow standard rules.

Pet food. Pet food does not qualify for BC’s PST exemption because it is not food for humans. It is taxable at 7% PST and also excluded from federal zero-rating, so 5% GST applies. Combined tax on pet food is 12%.⁴

Over-the-counter medications and vitamins. Non-prescription drugs marketed to treat or prevent a human disease or disorder are exempt from PST. That includes pain relievers, antacids, antihistamines, cold remedies, and medicated skin preparations. Vitamins and dietary supplements taken orally for human consumption are also PST-exempt, including items like vitamin C, cod liver oil, and protein supplements.⁴

Household goods. Cleaning supplies, paper towels, toiletries, and similar non-food items face both 5% GST and 7% PST, for a combined 12%. Buying them at a grocery store does not change the rate.

Container Deposits and Recycling Fees Are Not Taxes

Your grocery receipt may show charges that are not taxes at all. BC requires refundable deposits on most beverage containers, listed as separate line items. The standard deposit is 10 cents per container for most sizes and types, including aluminum cans, plastic bottles, glass bottles, and drink boxes. You get this back when you return the container to a depot.¹⁰

Some containers also carry a small Container Recycling Fee that funds the recycling program. These range from 2 cents for drink pouches and gable-top cartons up to 30 cents for bag-in-a-box containers, and they are not refundable.¹⁰ Retailers may display them as separate lines or bundle them into the shelf price. Either way, deposits and recycling fees do not attract additional GST or PST.

Quick Reference by Category

Basic groceries (produce, meat, dairy, bread, eggs): 0% GST + 0% PST = no tax
Snacks, candy, granola bars, salted nuts: 5% GST + 0% PST = 5%
Single-serving bakery items (fewer than six): 5% GST + 0% PST = 5%
Single-serving frozen desserts (under 500 mL): 5% GST + 0% PST = 5%
Heated or prepared food: 5% GST + 0% PST = 5%
Soda beverages: 5% GST + 7% PST = 12%
Alcohol over 1%: 5% GST + 10% PST = 15%
Pet food and household goods: 5% GST + 7% PST = 12%
Over-the-counter medications and vitamins: 0% GST + 0% PST = no tax

1
Province of British Columbia. B.C. Provincial Sales Tax (PST)
2
Canada Revenue Agency. Basic Groceries
3
Province of British Columbia. Provincial Sales Tax Act – Section 139
4
Government of British Columbia. Grocery and Drug Stores – Bulletin PST 206
5
Justice Laws Website. Excise Tax Act – Schedule VI, Part III
6
Canada Revenue Agency. Snack Foods
7
Province of British Columbia. PST Exemptions
8
Government of British Columbia. Notice to Sellers of Soda Beverages
9
Ministry of Finance. Liquor Producers
10
Return-It. Deposits, Fees, and Container Types