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.

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.

Tax‑included pricing

The beer and wine taxes do not apply to all beer and wine purchased by a consumer in Ontario.

For example:

  • foreign imported beer is not subject to the beer tax
  • domestic and imported beer purchased directly from the LCBO, or from a retailer who purchased from the LCBO (e.g., convenience store), or from a licensee who purchased from the LCBO (e.g., bars and restaurants) is not subject to the beer tax
  • wine purchased from the LCBO, or from a retailer who purchased from the LCBO (e.g., convenience store), is not subject to the wine tax, nor is wine purchased at a licensed establishment

Learn when beer and wine is subject to tax.

Tax-included retail pricing requirements

All winery retail stores must include wine tax payable in their pricing.

Similarly, all applicable beer taxes must be included in the price of beer.

List of microbrewers

The beer basic tax rate depends on whether the beer was manufactured by a microbrewer or not. The Ministry of Finance posts 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 1. If March 1 is a Saturday or Sunday, the sales year commences the following Monday.

Information for purchasers

Beer tax collectors and wineries may list the amount of the beer and wine taxes payable on the invoices to purchasers but are not required to do so.

Beer and wine taxes not listed on invoices

Where an invoice does not state the amount of beer or wine taxes collected:

  1. Beer tax collectors must post, in a prominent location on the premises where the beer is purchased by a consumer, or provide 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, or the current beer basic tax applicable to draft beer made and purchased at a licensed brew pub, 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.
  2. Wineries must post, in a prominent location where the wine is purchased by a consumer, or provide an information sheet specifying:
    • the current wine tax rates (basic, volume and environmental) applicable to wine purchased at the store
    • information on what is considered Ontario wine for tax purposes
    • information on how the retail price of the wine is determined for tax purposes, 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:

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.

Beer basic tax rates

The beer basic tax rates were scheduled to increase by an adjustment factor on March 2, 2026. 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, 2027. 

The 2025 Budget bill amended the Liquor Tax Act,1996, effective August 1, 2025, to reduce the beer basic tax rates for Ontario microbrewers. 

Learn more about the tax rates.

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.