Yes, there is tax on wine in Ontario, and usually more than one layer of it. Every bottle carries 13 percent Harmonized Sales Tax at the register. Behind the shelf price sits a federal excise duty and, depending on where you buy, either the LCBO’s wholesale markup or a provincial wine basic tax that ranges from 0 to 19.1 percent. A refundable bottle deposit and a legal minimum price round things out.
The 13 Percent HST
HST applies to every wine purchase in the province at a flat 13 percent, combining the 5 percent federal GST with an 8 percent provincial component. The rate is the same at the LCBO, a grocery store, a winery, or a restaurant, and it appears as a separate line on your receipt.
Because HST is calculated on the final retail price after all other markups, a more expensive bottle produces more tax in absolute terms. A $20 bottle triggers $2.60 in HST; a $50 bottle triggers $6.50.
The LCBO Wholesale Markup
For most wine sold in Ontario, the biggest addition to the base cost isn’t technically a tax. The Liquor Control Board of Ontario is the sole importer and wholesaler of wine in the province, and it applies a wholesale markup to every product it distributes. The markup is a fixed percentage of the wine’s landed cost and varies by product category and alcohol content.1Doing Business with LCBO. Pricing The LCBO does not publish a single simple rate, but the markup commonly exceeds the base cost of the wine itself.
This matters because grocery stores, convenience stores, bars, and restaurants all get their inventory from the LCBO. Those retailers buy at wholesale prices that already include the markup, then add their own margin. The only wine that skips this step is wine sold at a winery’s own retail store, which is charged the provincial wine basic tax instead.
Wine Basic Tax at Winery Stores
Wine bought directly from a winery in Ontario is taxed under the Liquor Tax Act, 1996. Because winery-to-consumer sales bypass the LCBO wholesale system, the province collects its cut through this route. The 2026 Ontario Budget merged three older levies (basic, volume, and environmental) into a single wine basic tax as of April 1, 2026.2Government of Ontario. Wine Tax
The rate depends on origin and store type:
- Ontario wine at an on-site winery store: 0 percent. This replaced the previous 6.1 percent rate and effectively makes locally grown wine tax-free beyond HST when bought where it was produced.2Government of Ontario. Wine Tax
- Non-Ontario wine at an on-site winery store: 19.1 percent of the retail price.3Ontario. Liquor Tax Act, 1996, S.O. 1996, c. 26, Sched.
- Any wine at an off-site winery store (the owner’s wine): 12.0 percent of the retail price.3Ontario. Liquor Tax Act, 1996, S.O. 1996, c. 26, Sched.
For tax purposes, “Ontario wine” means the product is made almost entirely from Ontario-grown produce.2Government of Ontario. Wine Tax The wine basic tax is calculated on the winery’s retail price, excluding the container deposit and HST. The winery collects it at the till and remits to the Ministry of Finance.
The wine basic tax applies only at winery retail stores. It does not apply at the LCBO, a grocery store, a convenience store, a bar, or a restaurant, because those outlets already pay the LCBO wholesale markup on their inventory.2Government of Ontario. Wine Tax The province gets its revenue one way or the other, not both.
Federal Excise Duty
Before any provincial charge, Ottawa collects an excise duty on wine under the Excise Act, 2001. The duty is levied during production for domestic wine or at the border on imports, so it’s embedded in the price rather than shown on your receipt. Rates are based on volume and alcohol content, not the wine’s market value.
Effective April 1, 2026, the rates are:
- Wine at 1.2 percent ABV or less: $0.022 per litre
- Wine above 1.2 percent but not more than 7 percent ABV: $0.358 per litre
- Wine above 7 percent ABV: $0.745 per litre
Most table wines land in that top tier.4Canada Revenue Agency. Excise Duty Rates The rates are adjusted every April 1 in step with the Consumer Price Index, so they tend to creep upward.5Canada Revenue Agency. Adjusted Rates of Excise Duty on Spirits and Wine Effective April 1, 2026
Because the duty is volume-based, a three-litre box of inexpensive wine carries roughly four times the excise burden of a standard 750 mL bottle regardless of what each one costs.
Minimum Price and Bottle Deposit
Ontario also sets a legal floor price. As of April 1, 2026, the minimum retail price for a standard 750 mL bottle of wine is $10.95, and any LCBO-listed product priced below that is adjusted upward. The minimums come from Ontario Regulation 750/21 and are updated periodically.
Every wine purchase also includes a mandatory container deposit under the Ontario Deposit Return Program: $0.10 for containers of 630 mL or smaller and $0.20 for anything larger.6helloLCBO. Ontario Deposit Return Program The deposit shows up on your receipt beside the tax, but it is fully refundable when you return the empty. As of January 1, 2026, all grocery store licensees in Ontario must accept empty liquor containers and refund the deposit.7Alcohol and Gaming Commission of Ontario. All Grocery Store Licensees Required to Participate in Ontario Deposit Return Program
Bringing Wine Back From Abroad
Returning to Canada from an international trip, you can bring back up to 1.5 litres of wine (two standard bottles) duty-free, but only if your trip lasted at least 48 hours. For trips under 48 hours there is no personal exemption for alcohol, and the $200 goods exemption for 24-to-48-hour trips explicitly excludes it.8Travel.gc.ca. Personal Exemptions Mini Guide
Wine beyond the duty-free allowance is hit with federal customs duty, federal excise duty, and then 13 percent HST on the combined value. Ontario may add provincial fees on the excess. That math is why loading up at a border-town wine shop often saves less than people expect.
What a $20 Bottle Actually Costs
On a $20 bottle of Ontario wine bought at the LCBO, the shelf price already contains the LCBO wholesale markup and about $0.56 in federal excise duty (0.745 × 0.75 litres). At the register you add $2.60 in HST and a $0.20 deposit, for a total of $22.80. The deposit comes back when you return the bottle.
Buy the same wine at the winery where it was produced and you pay no wine basic tax at all (the Ontario-on-site rate is 0 percent), just HST and the deposit on the winery’s retail price, which is typically lower because there is no LCBO markup in the chain. Buy a non-Ontario wine at a winery store, though, and the 19.1 percent wine basic tax adds a layer that rivals the LCBO markup. That structure is deliberate: it favors Ontario-grown wine and gives visiting buyers a financial reason to pick local.