Learn more about the proposed changes to the Liquor Tax Act, 1996 in the 2026 Ontario Budget: A Plan to Protect Ontario.

Information

Annual adjustment to basic beer tax rates deferred to March 1, 2027

The scheduled annual adjustment to the beer basic tax rates on March 2, 2026 has been deferred to March 1, 2027. This means the current beer basic tax rates will continue to apply until February 28, 2027. For more details see O. Reg. 257/10 under the Liquor Tax Act, 1996 on www.ontario.ca/laws.

Brewery sales to licensees transitioning to LCBO wholesale mark-up channels on April 1, 2026

Beginning April 1, 2026, the LCBO will become the exclusive wholesaler of beer to holders of a liquor consumption premises licence (e.g. bars and restaurants). Amendments to sections 35, 106, and 136 of the Licensing regulation (O. Reg. 746/21) under the Liquor Licence and Control Act, 2019, will revoke brewers' authority to sell beer to holders of a liquor consumption premises under their brewery licence or through The Beer Store. All domestic brewers that currently sell directly to bars & restaurants or LCOs must be authorized under LCBO's Direct Delivery Program or listed on wholesale.lcbo.com. Learn more at Doing Business with LCBO.

The current beer basic tax rates will remain in effect until Febuary 28, 2027. The 2025 Budget introduced legislation, effective August 1, 2025, to reduce the beer basic tax rates for microbrewers from 35.96 cents to 17.98 cents per litre for draft beer and 39.75 cents to 19.88 cents per litre for non-draft beer. For purchases made before August 1, 2025, refer to Beer Tax information sheet — Purchases made until July 31, 2025.

Beer manufacturers

Beer made by an Ontario beer manufacturer, that is subject to beer taxes, is priced to include the following beer taxes.

Beer basic and volume taxes combined (volume tax is 17.6 cents per litre):

  • 107.34 cents per litre of beer, for beer shipped in a container with a capacity of less than 18 litres (non‑draft beer), or
  • 90.05 cents per litre of beer, for beer shipped in a container with a capacity of 18 litres or more (draft beer).

Environmental tax (if applicable):

  • 8.93 cents per non-refillable container.

A list of Ontario beer manufacturers and the brands they manufacture subject to the beer taxes is available at the ministry's website at ontario.ca/beerbrands.

Microbrewers

Beer made by an Ontario beer manufacturer that is a microbrewer for the sales year, and that is subject to beer taxes, is priced to include the following beer taxes.

Beer basic and volume taxes combined (volume tax is 17.6 cents per litre):

  • 37.48 cents per litre of beer, for beer shipped in a container with a capacity of less than 18 litres (non‑draft beer), or
  • 35.58 cents per litre of beer, for beer shipped in a container with a capacity of 18 litres or more (draft beer).

Environmental tax (if applicable):

  • 8.93 cents per non‑refillable container.

A list of Ontario beer manufacturers that are microbrewers and the brands they manufacture subject to the beer taxes is available at the ministry's website at ontario.ca/beerbrands.

Brew pubs

Draft beer made and purchased at a brew pub or at a secondary location related to the brew pub, is subject to the beer basic tax, which is included in the price.

Beer basic tax:

  • 33.41 cents per litre of draft beer.

Learn when beer is subject to the beer taxes.

Disclaimer: The information on this page does not replace the law found in the Liquor Tax Act, 1996, and related regulations. For more information, please visit ontario.ca/finance.