Ontario Budget Introduces Simplified Alcohol Taxes and New Rates for Beer, Wine, and Spirits

• The budget simplifies alcohol taxation by introducing single tax rates for beer, wine, and spirits, effective April 1, 2026.
• Beer will have unified rates: $1.18/litre (non-draft), $0.90/litre (draft), and lower rates for microbrewers.
• Wine will have a 0% rate for Ontario wines sold on-site, 19.1% for non-Ontario wines on-site, and 12% for off-site sales.
• Spirits will be taxed based on alcohol content: 20% (≤7.1% ABV), 25% (>7.1%–18% ABV), and 30.75% (>18% ABV).
• The Small Beer Manufacturers’ Tax Credit will be adjusted, and tax filing/reporting requirements are deferred to July 2026, with no penalties if filed by August 20, 2026.

Source: assets.kpmg.com

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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