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Tax-included pricing and requirements for beer tax collectors, wineries and certain authorized grocery stores
Pursuant to the 2023 Ontario Budget: Building a Strong Ontario, effective July 1, 2023, a single basic tax rate of 12 percent applies to wine and wine coolers sold in off-site winery retail stores if the wine or wine cooler is manufactured by the owner of the off-site winery retail store. Off-site winery retail stores include:
- standalone off-site stores, and
- stores located inside the shopping area of a grocery store, referred to as wine boutiques.
The beer basic tax rates were scheduled to increase by an adjustment factor on March 1, 2023. The Minister of Finance signed an amendment to O. Reg 257/10, made under the Liquor Tax Act, 1996 to delay the date of the next scheduled adjustment to March 1, 2024. As a result, the current beer basic tax rates will continue to apply until February 29, 2024.
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.
Beer tax collectors, wineries and grocery stores with wine boutiques must make available to purchasers, by an approved method, information about the amount of taxes included in the price. This page addresses this requirement as well as the approved methods of providing such information.
For the purposes of this page, wine includes wine coolers.
This page provides general information. It is not exhaustive and does not replace the law found in the Liquor Tax Act, 1996, and related regulations.
The retail price (i.e., purchases at a retail store and not licensed establishments) of a particular beer or wine is the same whether it is purchased at a Liquor Control Board of Ontario (LCBO) store or one of its agency stores, The Beer Store, a brewery retail store, a winery retail store or a grocery store wine boutique. However, beer and wine taxes do not apply to all beer and wine sold in Ontario.
- foreign imported beer is not subject to the beer tax
- domestic and imported beer purchased from the LCBO (other than a southern agency store), or from a person who purchased from the LCBO (other than a southern agency store), is not subject to the beer tax
- wine purchased from the LCBO, or from a person who purchased from the LCBO, is not subject to the wine tax, nor is wine purchased at a licensed establishment.
Tax-included retail pricing requirements
All winery retail stores, must include all wine tax payable in their pricing.
Similarly, all beer tax collectors must sell their beer at a price that includes all beer tax payable.
Beer tax collectors include:
- The Beer Store
- establishments licensed under the Liquor Licence and Control Act, 2019 by the Alcohol and Gaming Commission of Ontario to sell liquor to the public (e.g., bars and restaurants)
- (southern) agency stores of the LCBO, and
- authorized beer manufacturers that sell beer from their brewery retail store.
List of microbrewers
As the beer basic tax rate that applies to the beer depends on whether the beer was manufactured by a microbrewer or not, the ministry will post a list containing the names of beer manufacturers that are microbrewers, and the brands of beer they manufacture for each sales year, at ontario.ca/beerbrands.
A sales year is a 12‑month period commencing March 1st. If March 1st is a Saturday or Sunday, the sales year commences the following Monday.
Information for purchasers
Beer and wine taxes contained in invoices
Beer tax collectors and wineries may provide the amount of the beer and wine taxes payable on the invoices issued to purchasers.
Beer and wine taxes not contained in invoices
Where an invoice is not provided detailing the amount of beer and wine taxes payable,
- Beer tax collectors must post in a prominent location of the premises where the beer is sold, or provide to purchasers, an information sheet specifying:
- the current beer tax rates (basic, volume and environmental) applicable to draft and non-draft beer made by an Ontario beer manufacturer or an Ontario microbrewer, and
- a reference to the ministry's website at ontario.ca/finance for further information, including the list of beer manufacturers considered microbrewers for the sales year.
If the beer tax collector also sells draft beer made at a brew pub by the holder of a liquor sales licence with a brew pub endorsement for that brew pub (i.e., it is the brew pub itself or a secondary location related to the brew pub), the information sheet must also specify the current beer tax rates applicable to draft beer made at a brew pub
- Wineries must post in a prominent location where the wine is sold, or provide to purchasers, an information sheet specifying:
- the current wine tax rates (basic, volume and environmental) applicable to wine sold at the store
- information on what is considered Ontario wine under the Act
- information on how the retail price of the wine is determined under the Act, and
- a reference to the ministry's website at ontario.ca/finance for further information.
Information sheets for beer tax collectors, wineries and authorized grocery stores with wine boutiques approved by the ministry:
- Beer Tax Information Sheet - Purchases made from March 1, 2018 until February 29, 2024
- Wine Tax Information Sheet - On-Site Winery Retail Stores
- Wine Tax Information Sheet - Off-Site Winery Retail Stores
Note: The information sheet for beer tax collectors will be updated by the ministry to reflect the adjustment of the beer basic tax rates as applicable.
Request an interpretation
To obtain an interpretation on a specific situation not addressed, please send your request by:
- email: Advisory Services
- mail: Ministry of Finance, Advisory Services, 33 King Street West, 3rd Floor, Oshawa ON L1H 8H5
For more information
Visit ontario.ca/finance or contact the Ministry of Finance at 1‑866‑ONT‑TAXS (1‑866‑668‑8297) or 1‑800‑263‑7776 for teletypewriter (TTY).
The Liquor Tax Act, 1996, and Ontario's other public statutes and regulations may be obtained online at ontario.ca/e‑laws.