Rules by country / Americas / Canada alcohol excise tax 2026
Canada alcohol excise tax 2026: what it costs each drink, and what to do
Federal excise rises with inflation every 1 April, by at most 2% a year until 2028. Since 1 April 2026, beer over 2.5% pays C$37.69 a hectolitre, wine over 7% C$0.745 a litre and spirits C$14.117 a litre of alcohol. We work out the duty on every product and how to price for it.
At the regular federal rates from 1 April 2026, before provincial taxes. Beer rates are per hectolitre, shown here per litre.
A duty pass-on plan for Canada
How much of each April rise to pass on, product by product and province by province, with a price plan for each channel.
- How much of each duty rise to pass on, product by product, and how sure we are
- The price points and pack sizes that carry the duty best
- How shoppers switch between beer, wine and spirits when prices move
- A price plan for each retailer, and an Excel model to update at each rise
How your results look
| Product | Federal excise a pack | Our advice |
|---|---|---|
| Lager, 24 x 355ml, 5% | C$3.21 | Pass on in full |
| Red wine, 750ml, 13.5% | C$0.56 | Hold the price point |
| Whisky, 750ml, 40% | C$4.24 | Pass on in steps |
Fictional products. Every real result comes with the expected sales and profit, and a likely range.
Your options
Every option has a fixed price, agreed before we start.
Duty pass-on plan
- The duty and best choice for each product
- Price plan for each retailer
- Scenario model and a walk-through
Pricing review with the duty
- Everything in the duty review
- Prices and promotions for the whole range
- How your products take sales from each other
Portfolio review
- Everything in the pricing review
- More retailers and data sources
- A plan for each channel
After the project: a refresh before each pricing round, from £2,000 (about C$3,700). Prices are fixed in pounds sterling; amounts in Canadian dollars are a guide at October 2026 exchange rates. We're based in the UK and work remotely, in English, under NDA.
How it works
From the first call to your plan in about three weeks.
A free 15-minute call
Tell us about your range. We say whether a review would pay for itself, and quote a fixed price.
Your data
Sales by product and retailer, recipes and costs. We sign an NDA before anything moves.
Your plan
The duty on every product, the best choice and a price plan, walked through with your team.
Canada alcohol excise: the detail
Open only what you need.
- Beer
- C$37.69 a hectolitre over 2.5% alcohol, C$18.85 from 1.2% to 2.5%, and C$3.128 at 1.2% or less, from 1 April 2026
- Wine
- C$0.745 a litre over 7% alcohol, C$0.358 from 1.2% to 7%, and C$0.022 at 1.2% or less
- Spirits
- C$14.117 a litre of alcohol over 7%; C$0.358 a litre of spirits at 7% or less
- Each April
- Rates rise with inflation; the rise is capped at 2% a year, a cap extended in March 2026 for two more years
- Small brewers
- Reduced rates on the first 75,000 hectolitres a year brewed in Canada, lowest for the first 2,000
- On top
- Provincial taxes, liquor board markups and GST or HST
Pass it on
Raise the price by the tax or more. Works for products whose sales hold up when the price rises.
Absorb it
Keep the price and take the cost. Works when a rise would push a product past a key price point and lose more profit than the tax.
Change the strength
The duty is charged on the alcohol, so a small cut in strength lowers it on every pack.
What is the alcohol excise tax in Canada?
Since 1 April 2026: C$37.69 a hectolitre on beer over 2.5%, C$0.745 a litre on wine over 7%, and C$14.117 a litre of alcohol on spirits over 7%.
How much excise is on a case of beer in Canada?
About C$3.21 in federal excise on 24 x 355ml cans over 2.5%, before provincial taxes and markups.
When does the alcohol excise go up in Canada?
Every 1 April, in line with inflation, capped at 2% a year until 2028.
Do small brewers pay less excise in Canada?
Yes. Canadian brewers pay reduced rates on their first 75,000 hectolitres a year, lowest for the first 2,000.
How much does a duty pass-on plan cost?
A review of up to 10 products has a fixed price from £7,500 (about C$14,000) and takes about three weeks. For 11 to 50 products, a full pricing review costs around £17,500 (about C$33,000). It starts with a free 15-minute call.
Do you work with brands in Canada?
Yes. We're based in the UK and work remotely and in English, under NDA. Prices are fixed in pounds sterling before we start, and the first step is a free 15-minute call.
- Canada Revenue Agency, excise duty rates
- BNN Bloomberg, Ottawa extending 2% alcohol tax hike cap for another 2 years (31 March 2026)
Checked on 25 October 2026. Rules and rates change, so check the official source before making decisions. This page is not tax advice.