Ontario Cannabis Tax Rate
23% combinedRegulator: Alcohol and Gaming Commission of Ontario (AGCO) / OCS · Retail model: Hybrid (Public + Private) · Updated for 2026
13% Added at the register (13% HST)
≈23% Total effective incl. the ~10% federal excise embedded in the shelf price
Tax Breakdown
| Tax | Rate | Notes |
|---|---|---|
| Federal Cannabis Excise Duty | ~10% | Greater of $1/g or 10% of producer list price (baked into retail price) |
| Ontario HST | 13% | Harmonized Sales Tax (replaces GST + PST) |
| Added at the register | 13% | Sales tax applied to the shelf price at checkout |
| Total Effective Rate | ≈23% | Register tax + the ~10% federal excise embedded in the shelf price |
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Ontario Cannabis Tax Notes
Ontario applies the 13% HST to cannabis. OCS (Ontario Cannabis Store) is the sole legal online channel and wholesale supplier; private retailers licensed by AGCO sell to consumers. Combined effective retail rate ~23%.
Frequently Asked Questions
What is the cannabis tax rate in Ontario?
At the register you pay 13% HST on top of the shelf price. Counting the ~10% federal excise duty already baked into the producer price, Ontario's total effective cannabis tax is roughly 23%.
Who sells legal cannabis in Ontario?
Ontario uses a hybrid (public + private) retail model administered by the Alcohol and Gaming Commission of Ontario (AGCO) / OCS. Ontario mixes a government wholesaler / online channel with licensed private retail storefronts.
Is medical cannabis taxed in Ontario?
Medical cannabis purchased from federally licensed sellers in Ontario is subject to the same federal excise duty and GST/HST/PST as adult-use cannabis. Patients can, however, claim eligible expenses under the Medical Expense Tax Credit (METC) on their federal income tax return.
Does Ontario charge GST, HST, or PST on cannabis?
Ontario applies the 13% HST (harmonized sales tax) to cannabis purchases. HST replaces separate GST and PST, so you see a single rate on your receipt.
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