Is Manitoba Getting Rid of PST? What the 2026 Grocery Exemption Changed

Is Manitoba getting rid of PST? As of October 17, 2026, Manitoba’s general retail sales tax (RST) rate remains 7% and has not been abolished. GST is a separate federal tax. What did change: since July 1, 2026, most food and drinks sold at grocery stores are exempt from Manitoba PST (RST).

Where the Rumour Came From

The idea traces to Manitoba’s March 24, 2026 budget, which proposed removing the province’s 7% retail sales tax from food and drinks sold at grocery stores — rotisserie chicken, salads, chips and pop among them. The change became law as the Budget Implementation and Tax Statutes Amendment Act, 2026, which received royal assent on June 1, 2026, with the retail-sales-tax provisions taking effect July 1, 2026. The enacted exemption covers food and beverages purchased for human consumption — other than beverages containing more than 1% alcohol by volume, wherever they are bought — except when bought in restaurants and certain other venues or sold through vending machines or catering: business groups including Restaurants Canada and the Canadian Federation of Independent Business have since pushed the province to widen the exemption to restaurants, arguing the current design puts them at a disadvantage. None of that amounts to a general PST repeal — 7% remains the general RST rate, and the existing exemption for basic groceries still applies. Manitoba statute.

One more terminology note: Manitoba’s provincial sales tax is legally called the Retail Sales Tax (RST). “PST” is the informal, everyday name people use for the same tax — the two terms refer to the same 7% charge, they’re just different labels.

What Actually Changed on July 1, 2026

The expanded exemption includes listed ready-to-eat foods, certain snacks and beverages. The law excludes purchases in specified venues, including restaurants, vending machines, certain event and sporting facilities, and catering contracts; a separately paid restaurant area within a store can also be treated differently. Manitoba Act, food exemption; food and beverage notice.

• Ready-to-eat prepared food: self-serve sandwiches, pre-made salads, soups, rotisserie chicken and samosas
• Party platters: sushi trays, cold cut platters, fruit and cheese arrangements
• Snack foods: chips, pretzels, cheese puffs, salted nuts, trail mix
• Confectionery: candy, chocolate bars, chewing gum
• Single-serving baked goods, and beverages including carbonated drinks; specified non-carbonated fruit and fruit-and-vegetable drinks, some with less than 25% fruit juice; spring water, drinkable yoghurt and chocolate milk; qualifying sports, energy and protein drinks without a Health Canada natural health product licence; and de-alcoholized beer and wine containing 1% alcohol by volume or less

Manitoba’s notice says beverages with more than 1% alcohol, certain licensed dietary supplements, and pet food remain taxable. Non-food goods can also be taxable. Whether an item is exempt from Manitoba RST does not by itself determine its GST treatment; check the federal rules separately. Manitoba food notice.

Here is the same exemption line by line, before and after July 1, 2026:

Worked example: $10.00 of chips and pop bought at a grocery store totalled $11.20 with both taxes before July 1, 2026 ($10.00 × 1.12). From July 1, 2026, the same $10.00 purchase totals $10.50 — GST only ($10.00 × 1.05).

Which Stores Still Charge PST on Food?

The tax generally still applies to food bought in restaurants — including a food-service counter inside a grocery store where the food is paid for separately or cannot be paid at the checkouts normally used for grocery items — in licensed premises specified in a liquor service licence, in cinemas and sports or live entertainment venues where a price of admission is usually charged, and in sports or recreational facilities such as golf courses, curling clubs and hunting or fishing lodges. Vending-machine sales and catering contracts generally stay taxable too. Bulletin 029 notes exceptions: food or beverage dispensed for a single 25¢ coin is not taxable, and food not sold for consumption at an eating establishment is not taxed there if it is in a form not suitable for immediate consumption. In short: the same rotisserie chicken is RST-free at the grocery checkout and still taxed at a restaurant. CBC News, citing the province; Manitoba Act, s. 3(4.2)–(4.3); Bulletin 029.

Manitoba’s Rates in 2026

Manitoba is not an HST province — RST and GST are two separate taxes, filed to two separate agencies, and registering for GST with the CRA does not register you for Manitoba RST. On a $1,000 fully taxable sale: $50 GST + $70 RST = $1,120 total.

What This Means for Your Business

Manitoba RST registration and federal GST/HST registration are separate decisions. Manitoba allows a small-business registration exception for certain vendors with annual taxable sales under $30,000, but the notice lists exceptions; check the actual business, purchases and sales. Manitoba small-business notice.

Unlike federal GST, RST paid on most day-to-day business purchases — office equipment, software licences, supplies — is generally not recoverable as an input tax credit; there’s no equivalent ITC mechanism for RST, so for a registered business this tax is usually just an expense unless a specific resale or manufacturing exemption applies. Manitoba Finance administers RST separately from GST.

Does the food change end Manitoba RST?

Manitoba continues to list the general RST rate at 7%. The July 2026 exemption changed the treatment of qualifying food and beverages; it did not remove all provincial retail sales tax. Future policy is uncertain. Manitoba current RST guidance.

This is general information, not tax advice. Rates and exemptions can change; confirm current rules with Manitoba Finance before filing.

Related guides

• Manitoba GST and RST
• Manitoba RST exemptions
• Manitoba calculator

Sources

• Manitoba: expanded food and beverage exemption
• Manitoba: c04426
• Manitoba: retail
• CBC News: Manitoba to cut PST on all food items at grocery stores in July
• Global News: Manitoba’s provincial sales tax cut on store-bought food takes effect

Sources checked October 17, 2026.