The 2026 Ontario Budget, A Plan to Protect Ontario amended the Liquor Tax Act, 1996 to combine the wine basic, volume and environmental taxes into a single wine basic tax. This change took effect April 1, 2026.

Alcohol manufacturers may refer to this notice to understand how the changes apply to them.

Wine basic tax is included in the price a consumer pays for wine and wine coolers made by an Ontario winery when purchased from:

  • an Ontario winery retail store located at the winery’s production site, or
  • an Ontario winery retail store located off the production site, if the wine or wine cooler is manufactured by the winery that owns the store. Off-site winery retail stores include:
    • standalone off-site winery retail stores, and
    • wine boutiques located inside the shopping area of a grocery store with a shared checkout.

For wine boutiques, the wine basic tax applies only to the wine and wine cooler manufactured by the winery that owns the boutique.

Wine basic tax does not apply if you:

  • make your own wine or wine cooler; or
  • purchase wine or wine coolers from the Liquor Control Board of Ontario (LCBO) or from retailers that purchase their alcohol from the LCBO, such as bars, restaurants, grocery or convenience stores.

“Ontario wine” and “Ontario wine cooler” have their own meaning under the Liquor Licence and Control Act, 2019 and Liquor Tax Act, 1996 and may differ from what the wine industry may generally consider to be Ontario wine or an Ontario wine cooler.

Ontario wine means wine produced from agricultural products grown in Ontario, and may include agricultural products grown outside of Ontario in the prescribed amounts (as set out in the Liquor Licence and Control Act, 2019.)

Ontario wine cooler is Ontario wine, or a beverage containing Ontario wine, that contains not more than 7% alcohol by volume.

For tax purposes, “Ontario” generally means that the wine or wine cooler is produced almost entirely from 100 per cent Ontario‑grown produce. For wine that is cider made from apples, a product can be Ontario wine if not more than 30 per cent of the total content consists of concentrated juice of apples grown outside of Ontario.

Wine basic tax

The wine basic tax is calculated as a percentage of the retail price of the wine or wine cooler purchased. The retail price is the price set by the winery, and excludes:

  • any deposit on the container, and
  • all taxes imposed on the purchase of the beverage under
    • Part IX of the Excise Tax Act (Canada) (i.e., harmonized sales tax), and
    • Liquor Tax Act, 1996 (i.e., wine basic tax).

Wine basic tax rate - Effective April 1, 2026

At on-site winery retail store:
Ontario wine or wine cooler		At on-site winery retail store:
Non-Ontario wine or wine cooler		At off-site winery retail store (owner's wine):
All wine or wine cooler types
0%19.1%12.0%

Collection of tax

When applicable, a winery collects the wine basic tax and must report and remit the tax to the Ministry of Finance on a monthly basis (or, if the winery qualifies and elects, each set quarter). The return and tax remittance must be received by the 20th day after the end of the reporting period.

Filing a Wine and Wine Cooler Return

Who needs to file

If you are an Ontario winery that owns and operates winery retail stores, whether the winery retail store is located on-site or off-site of the  Ontario winery, you must file a monthly or quarterly wine return, even if you have no activity to report for the period.

For the purposes of the wine basic tax, wineries include other beverage alcohol manufacturers who make products that are considered to be wine or wine coolers.

How to file and pay

You are required to file electronically using ONT-TAXS online, the ministry’s secure online service for businesses.

Use ONT-TAXS online to:

  • file your return
  • make secure payments
  • access your account anytime

ONT-TAXS online provides instant confirmation of your submission.

The return for each reporting period will be available in ONT-TAXS online in the month before it’s due.

If you cannot file online, please contact the ministry.

Learn how to complete your Wine and Wine Cooler Returns in the guides below:

These guides include the new wine basic tax structure effective April 1, 2026. Please ensure you are using the latest version.

Filing frequency

The reporting period for wineries is generally monthly. However, wineries have the option to report on a quarterly basis if:

  • their total wine basic tax remittances over the previous calendar year were less than $15,000, or
  • the ministry determines that a winery’s remittances over the calendar year are likely to be less than $15,000 (for example, when a winery first starts selling wine from its winery retail store).

Quarterly filers must report for the following periods:

  • January through March
  • April through June
  • July through September
  • October through December

The ministry will notify you of your winery’s filing frequency when you receive your first return of the reporting year. Wineries that qualify and choose to file quarterly will remain quarterly filers for the entire reporting year, beginning in July.

Due dates

You must file your return and pay any amounts owing on or before the 20th day of the month following the reporting period.

Important: As part of the transition to the new wine basic tax structure effective April 1, 2026, the April, May, and June 2026 returns and related payments are all due on August 20, 2026. Updated returns with the new tax structure, including revised fields and calculations, became available in July 2026. No interest or penalties will apply if these returns are filed, and payments are made by August 20, 2026.

Learn more: Notice to Ontario alcohol manufacturers: April 1, 2026 tax changes

Keep books and records

You must keep books and records with information confirming you are complying with the Liquor Tax Act, 1996 and Regulations.

Visit ontario.ca/RecordRetention for more information.

Wineries deemed to be purchasers of their own products

A winery is deemed to be the purchaser of the wine or wine cooler it distributes in Ontario without charge and must pay any applicable wine basic tax. If a winery provides samples of wine or wine coolers at a charge and the charge does not cover all of the wine basic tax associated with that sample, the winery is deemed to be the purchaser of the sample to the extent of the shortfall and must pay the shortfall in the wine basic tax for that sample.

Promotional distribution exemption

A winery may claim a limited wine basic tax exemption for up to 10,000 litres of wine or wine coolers it distributes without charge in Ontario each year to promote its products.

Learn more about Promotional distribution exemption: Beer, wine and spirits tax.

Tax‑included pricing

Wine and wine coolers made by a winery, that is subject to wine basic tax, is priced to include the tax.

Wineries and grocery stores with wine boutiques must provide information on the amount of wine basic tax included in the price, in a manner approved by the Minister of Finance.

Wineries may list the amount of wine basic tax included on the invoice to purchasers but are not required to do so.

If an invoice does not state the amount of wine basic tax included, wineries and wine boutiques must prominently post or provide information that includes:

  • the current wine basic tax rate,
  • what qualifies as Ontario wine or wine cooler for tax purposes
  • how the retail price is determined for tax purposes, and
  • a reference to the ministry's website at ontario.ca/finance for further information.

Alcohol licensing

The Alcohol and Gaming Commission of Ontario (AGCO) and LCBO are responsible for the general regulation of the wine industries in Ontario, including the licensing of alcohol manufacturers and sellers.

Direct bank deposit

Get your Ministry of Finance refund or rebate faster with direct deposit! It's easy and secure.

Download: Direct Deposit Request / Direct Deposit Authorization

Contact us

If this page does not address your specific situation, please refer to the Liquor Tax Act, 1996 and its related regulations, or contact us using one of the options below:

Email: AM-SAU.Enquiry@ontario.ca
Toll-free: 1-866-ONT-TAXS (668-8297)    
TTY: 1-800-263-7776