Alcohol policies

Alcohol tax rates

Alcohol pricing and taxation are the most cost-effective policy levers to combat alcohol consumption and related harms, including cancer.^1-3 Higher alcohol prices are strongly associated with lower alcohol consumption.^3-5 Taxation and minimum pricing policies are especially effective when they are tied to the alcohol content in the beverage. This means that as the alcohol content of the beverage increases, the price gets higher.⁴

Canada is one of a few countries to adopt minimum alcohol pricing. This is when the government sets a floor price for alcohol, ensuring it cannot be sold for less than that amount. This is most effective when the minimum price is set per unit, or a set amount, of alcohol. This is referred to as minimum unit pricing.

Pricing and taxation is one of the eight policy domains that are explored under Policy actions.

Federal alcohol tax rates

The federal government applies excise tax rates to alcohol products in Canada, which are updated annually, along with a 5% Goods and Services Tax (GST). In some provinces, the GST is combined with the provincial sales tax to form the Harmonized Sales Tax (HST).

Excise tax rates⁶

Provincial and territorial alcohol tax rates

In addition to the excise taxes and GST applied to alcohol by the federal government, many provinces and territories apply additional taxes to alcohol products.

Additional fees, including markups and bottle deposits, are applied to alcohol purchases. Additional fees applied differ by jurisdiction and retail location.

_{¶HST = Harmonized Sales Tax. HST includes both GST and PST.
‡PST = Provincial Sales Tax
^RST = Retail Sales Tax
†QST = Quebec Sales Tax
*Specific taxes on beer, wine, and spirits differ by type and origin and are included in the retail price. The GST and QST (QC) and HST (ON) are calculated on the amount that includes the specific tax.
^^In PEI, the provincial health tax is applies to retail sales and to sales from the PEI Liquor Control Commission (PEILCC) to the licensee. Licensee sales to the consumer is exempt from the provincial health tax.
**In PEI, the HST is charged on the provincial health tax inclusive amount.}

Annual and per capita consumption and sales of alcohol

Per capita alcohol consumption for adults 15 years and older is the standard indicator for harmful alcohol use, and aligns with the Canadian Indicator Framework for the Sustainable Development Goals.^7-9 Per capita alcohol consumption varies across Canada, with a national measurement of 7.8 litres per person aged 15 years and older.⁸

Annual and per-capita sales of alcohol varies per jurisdiction.