New single basic tax rates

Beer tax

  • $0.46/L for non-draft beer made by microbrewers
  • $0.36/L for draft beer made by microbrewers
  • $1.18/L for non-draft beer made by non-microbrewers
  • $0.90/L for draft beer made by non-microbrewers

The beer basic tax rate for draft beer made and sold at Ontario brew pubs will be maintained at $0.3341 per litre.

The Small Beer Manufacturers’ Tax Credit for 2026/27 has been adjusted to account for changes to beer basic tax rates. The maximum benefit for eligible small beer manufacturers has increased, and the existing phase-out at 2 million litres of annual sales has been maintained.

Wine tax

  • 12% of the retail price on owner’s wine and wine coolers (Ontario and non-Ontario) purchased from off-site winery retail stores
  • 19.1% of the retail price on non-Ontario wine and wine coolers purchased from on-site winery retail stores
  • 0% on Ontario wine and wine coolers purchased from on-site winery retail stores

Spirits tax

The new single spirits basic tax rates are based on alcohol by volume (ABV):

  • 20% on spirits with an ABV of 7.1% or less
  • 25% on spirits with an ABV greater than 7.1% and up to 18%
  • 30.75% on spirits with an ABV greater than 18%

Retroactive period

Recent amendments to the Liquor Tax Act, 1996 include rules to treat the difference in the taxes collected between April 1, 2026, and April 24, 2026, the date the legislation was passed, as part of the purchase price.

This means alcohol manufacturers do not have to remit the difference resulting from the higher tax rate that may have been included in the price of beer, wine or spirits sold to consumers on or after April 1, 2026.

Extending the April, May and June 2026 return filing period

To support a smooth transition, alcohol manufacturers have been given additional time to file and pay their April, May, and June 2026 returns.

The April, May, and June 2026 monthly returns, and associated payments, are not due until the July return due date of August 20, 2026.  These returns will be updated to reflect the changes and will be available in July 2026. No interest or penalties will apply, provided the April to June 2026 returns are filed by August 20, 2026.

This temporary filing extension does not affect the March 2026 return, which must still be filed on time and paid in full. Outstanding balances or payment arrangements for reporting periods prior to April 2026 must also be paid.

Quarterly Wine and Wine Cooler Return filers

For quarterly filers, April to June 2026 return is not due until August 20, 2026. The due date for the July to September 2026 return remains unchanged.

More information

The ministry will continue to share updates with alcohol manufacturers through ONT‑TAXS online, including when updated guides and returns are available.

If you have any questions, please contact us at 1-866-668-8297.