Tobacco Tax rate increases
On November 15, 2018, the government announced that it will not move forward with planned tobacco tax rate increases in 2019. Tobacco tax rates will remain at their current levels. Learn more.
Effective 12:01 a.m. on March 29, 2018, the Ontario tax rate for cigarettes and other tobacco products (except cigars) increased from 16.475 cents to 18.475 cents per cigarette and per gram or part gram of other tobacco products. This means that the tobacco tax rate on a carton of 200 cigarettes increased by $4.00. The tax rate for cigars remains unchanged at 56.6 per cent of the taxable price.
The following is a summary of the previous rate and the new rate effective March 29, 2018:
|New Rate||Previous Rate||Increase|
|Other Tobacco Products (except cigars) Per gram or part gram of tobacco product (e.g. coarse/fine cut, snuff, chewing tobacco)||$0.18475||$0.16475||$0.02|
All tobacco wholesalers must collect and remit tobacco tax at the new rate on and after March 29, 2018.
This page provides general information only and does not replace the Tobacco Tax Act and Regulations.
Tobacco tax increases are implemented by Ontario Regulation 5/05 made by the Minister of Finance under the Tobacco Tax Act.
Inventory requirements for non-collector wholesalers
Wholesalers of tobacco products who are not collectors of tobacco tax are required to take an inventory of all cigarettes and other tobacco products (except cigars) held as of 12:01 a.m., March 29, 2018, and must remit the additional tobacco tax on that inventory, based on the difference between the previous and new tax rates, to the Minister of Finance by April 26, 2018.
As compensation, the wholesaler may deduct an amount of five per cent from the additional tax amount. However, wholesalers who deliver the inventory report or remit the additional tax after the due date will not be allowed to deduct five per cent from the additional tax amount.
The Ministry of Finance is emailing or faxing a Tobacco Products Inventory Report and instructions to wholesalers on March 28, 2018. For more information on the Tobacco Products Inventory Report and instructions please call 1-866-668-8297 ext. 16042.
Wholesalers who have been designated by the Minister of Finance as Tobacco Tax Collectors are not subject to the inventory requirements.
Request an interpretation
To obtain an interpretation on a specific situation not addressed, please send your request by:
- email: Program.Advisory@Ontario.ca
- 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)