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Excise tax in Canada is a charge on particular goods, and most of it is paid long before you reach the till. As of April 2026, the standard duty on spirits above 7% alcohol is $14.117 per litre of pure alcohol, and a pack of 20 cigarettes carries $3.89. Ordinary shoppers rarely see these amounts on a receipt.
What counts as an excise tax and what counts as an excise duty?
The CRA uses two words, and they aren’t the same thing. Excise duties apply to spirits, wine, beer, tobacco, cannabis and vaping products. Excise taxes apply to a short list of other items, such as fuel-inefficient vehicles, vehicle air conditioners and certain fuels. The CRA also runs the Air Travellers Security Charge, which is charged when a passenger boards at a listed Canadian airport.
What about the fuel charge?
It ended. The CRA says returns for it stopped being needed after 31 March 2025, in the provinces where it applied.
None of this is GST or HST. Those are sales taxes, charged as a percentage of the price and collected by registered businesses. Excise sits underneath. If you want to see how the sales tax layer works, the GST and HST calculator handles it.
Who actually pays it?
Not the customer, at least not directly. The CRA says anyone who makes or produces spirits, wine, beer, tobacco, cannabis or vaping products in Canada needs a licence, and most licensees must post at least $5,000 in security. The duty is owed when the product is packaged, delivered or stamped, depending on the type. Importers pay it when the goods arrive.
The same idea holds for excise tax. A manufacturer of a taxed item generally needs a licence, unless annual sales stay at or under $50,000. A wholesaler can hold a licence too, which lets it defer the tax until the goods are resold.
After that, the cost is in the wholesale price. Whether a shop shows it, hides it or rounds it up is the shop’s business, and we haven’t confirmed how any particular retailer treats it.
Excise duty rates in 2026
These are the rates the CRA lists as effective 1 April 2026. Rates on alcohol are per litre or per hectolitre (100 litres), as shown.
| Product | Rate from 1 April 2026 |
|---|---|
| Beer over 2.5% alcohol | $37.69 per hectolitre |
| Beer over 1.2% up to 2.5% | $18.85 per hectolitre |
| Spirits over 7% alcohol | $14.117 per litre of absolute ethyl alcohol |
| Wine over 7% alcohol | $0.745 per litre |
| Cigarettes | $0.97299 per 5 cigarettes |
| Manufactured tobacco | $12.16227 per 50 grams |
| Vaping products | $1.12 per 2 mL or 2 g (first 10 mL or g) |
Cannabis is more involved. The CRA’s page shows a flat rate per gram and a percentage rate, and the split with each province varies. We’re leaving it out of the table rather than guess.
What does that mean for a bottle or a case?
Here’s the arithmetic on the standard rates. A 750 mL bottle of 40% spirits holds 0.3 litres of pure alcohol, so it carries about $4.24 of duty. A case of 24 cans of beer at 341 mL each is 8.184 litres, which comes to about $3.08 at the higher beer rate. A pack of 20 cigarettes is four lots of five, so $3.89.
These are our own sums from the published rates, not figures from a price list. Small brewers and other special cases can pay less, and we didn’t confirm those rules, so treat the beer figure as a ceiling for an ordinary brewer.
Where people get this wrong
The biggest slip is mixing up excise with sales tax. A business that sells a taxed product still charges GST or HST on top, and it still needs its own registration for that. Buying a licence doesn’t cover it.
Another one is assuming a rate you saw last year still applies. The alcohol and tobacco figures above are dated 1 April 2026. We couldn’t confirm when the next change happens, so check the CRA’s rate page before you price anything.
Then there’s the import side. If you’re importing alcohol or tobacco for a business, the duty is due at the border, and a missed licence is a bigger problem than a missed payment. The CRA’s own contact for licensing questions is the number on its excise page, and that’s worth a call before you bring in a shipment.
If you run a small company that sells taxed goods, the tax you collect also affects your yearly profit. The corporate tax calculator shows how that lands on a small company’s income tax, and the HST reverse calculator pulls the sales tax back out of a price that already includes it. To see how cost changes move your margin, try the profit margin calculator.
Where do these numbers come from?
The duty rates come from the CRA’s excise duty rate page, effective 1 April 2026. The list of taxes, the licensing rules and the end of the fuel charge come from the CRA’s page on excise taxes, excise duties and related charges. We checked both on 30 September 2026. This site has no connection with the CRA.
Frequently asked questions
Is excise tax the same as GST or HST?
No. GST and HST are sales taxes charged as a percentage of the price. Excise is a separate charge on particular goods, paid by licensed makers or importers.
Which products carry excise duty?
Spirits, wine, beer, tobacco, cannabis and vaping products. Excise taxes cover a shorter list, such as fuel-inefficient vehicles and vehicle air conditioners.
Do I pay excise tax when I buy a bottle of wine?
You pay it indirectly. The licensed producer or importer owes the duty and it is part of the wholesale cost. Whether a shop shows it on the shelf tag is up to the shop.
Does Canada still have a fuel charge?
The CRA says fuel charge returns were no longer needed after 31 March 2025 in the provinces where it applied.
When do the alcohol and tobacco rates change?
The rates we list took effect on 1 April 2026. We couldn't confirm the date of the next change, so check the CRA rate page.
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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.