The LCBO does charge tax, but not the way most retailers do: the 13% Ontario HST is already built into the shelf price, along with the container deposit and every government markup. The number on the tag is the number you pay at the register.1helloLCBO. LCBO Pricing Structure: Price Markup Example
What the Shelf Price Already Includes
An LCBO price tag is an all-in figure. It rolls together the supplier’s cost, import duties, freight, government levies, the LCBO’s markup, the 13% HST, and the refundable container deposit.1helloLCBO. LCBO Pricing Structure: Price Markup Example Nothing is added when you check out.
Ontario has a separate spirits basic tax, but it only applies to spirits bought directly from a distillery. It doesn’t touch bottles bought at the LCBO, licensed bars, or grocery and convenience stores.2Government of Ontario. Spirits Tax
Why Your Receipt Still Shows HST
Ontario’s HST is a single 13% rate combining the 5% federal GST and an 8% provincial portion.3Canada Revenue Agency. Charge and Collect the GST/HST – Which Rate to Charge Even though you paid nothing extra at the till, the receipt breaks out the HST dollar amount on its own line. For most shoppers that line simply confirms the tax was baked in. For businesses, it’s the figure they’ll rely on later.
Container Deposits: Included Now, Refundable Later
Ontario’s Deposit Return Program adds a small refundable charge to every alcohol container, and at the LCBO it’s already inside the shelf price.1helloLCBO. LCBO Pricing Structure: Price Markup Example The amounts:
- 10 cents for containers 630 mL or smaller, and cans 1 L or smaller
- 20 cents for containers larger than 630 mL, and cans larger than 1 L
The deposit applies to glass, plastic, aluminum cans, Tetra Pak, and bag-in-box packaging.4The Beer Store. 5 Reasons to Return Alcohol Containers to The Beer Store You get the full deposit back in cash when you bring empties to any Beer Store or a participating grocery store, regardless of where the bottle was originally bought.5helloLCBO. Ontario Deposit Return Program (ODRP) Starting January 1, 2026, every grocery store licensed to sell alcohol has to accept returns, which widens the network of drop-off points.6Alcohol and Gaming Commission of Ontario. All Grocery Store Licensees Required to Participate in Ontario Deposit Return Program by January 1, 2026
Grocery and Convenience Store Prices Are Different
If you compare an LCBO tag against a grocery or convenience store tag, be careful. Since September 2024, licensed grocery and convenience stores no longer have to display prices with tax and deposit included. The sticker price on their shelf might look lower than the LCBO’s, only for HST and the deposit to appear as separate charges at checkout. Ontario’s minimum retail price for alcohol still has to include all taxes, but the deposit sits on top of that minimum.7Government of Ontario. Ontario Regulation 750/21 – Minimum Pricing of Liquor and Other Pricing Matters
The LCBO tag is the walk-out-the-door price. A grocery tag might not be. The actual cost of an identical product is often the same; the difference is how it’s displayed.
Online LCBO Orders
Prices on the LCBO website follow the same all-in rule as the stores: HST and container deposits are already included.1helloLCBO. LCBO Pricing Structure: Price Markup Example The only extra you can encounter is shipping. Ordering to any LCBO store for pickup is free; home delivery is $11.95 plus tax on a minimum $50 order.8LCBO. Choose Your Most Convenient Delivery Option
HST Exemption for Status First Nations Purchasers
Status First Nations individuals can get a point-of-sale exemption for the 8% provincial portion of the HST on qualifying LCBO purchases. The 5% federal GST still applies. You’ll need to present a valid Certificate of Indian Status card or a Temporary Confirmation of Registration Document when you pay.9Government of Ontario. HST – Ontario Point-of-Sale Rebates
Full relief from all 13% HST is possible, but only when the goods are delivered to a reserve by the vendor or a common carrier. Carrying the purchase to the reserve yourself doesn’t qualify.10Canada Revenue Agency. GST/HST and First Nations Peoples If a retailer charges the full 13% on a qualifying off-reserve purchase when they shouldn’t have, you can apply to the Ontario Ministry of Revenue for a rebate of the provincial portion.11Canada Revenue Agency. Ontario First Nations Point-of-Sale Relief – Reporting Requirements for GST/HST Registrant Suppliers
Recovering HST on Business Purchases
If you’re a GST/HST-registered business buying at the LCBO for commercial use, such as a restaurant stocking its bar or a caterer buying wine for an event, you can recover the HST by claiming an input tax credit on your GST/HST return. The purchase has to be for use in your commercial activities, and you need to keep the LCBO receipt.12Canada Revenue Agency. Input Tax Credits That HST line on the receipt is exactly the amount you’d claim back.
Businesses on the quick method of accounting generally can’t claim input tax credits on operating expenses, so check your reporting method before you file. The claim also has to be reasonable for the nature of the business; buying a case of wine for a staff party and writing it off as a business expense is the kind of thing that draws scrutiny.