Canadian Federal and Provincial Cannabis Excise: Duty and Markups
Reference for Canadian federal cannabis excise duty and provincial/territorial markups. Licensed cannabis producers and sellers must charge the applicable duty; the federal component is $1 per gram or 10% of dutiable amount, whichever is higher, plus provincial markups.
This is a regulated fee — required or governed by law in the jurisdictions below.
Overview
Under the Excise Act, 2001, cannabis produced or sold in Canada is subject to federal excise duty. The federal duty is the higher of $1 per gram (or per gram of cannabis equivalent) or 10% of the dutiable amount. In addition, provinces and territories apply their own cannabis markup or tax (e.g. Ontario, Alberta, BC), which is often collected alongside the federal duty. Licensed cannabis sellers must display and remit these amounts. The duty and markup must be shown clearly to consumers; many merchants display them as separate line items at checkout.
Fee schedule by jurisdiction
5 jurisdictions with active fee requirements.
| Jurisdiction | Fee |
|---|---|
| Canada (federal) | $1 per gram (or per gram of cannabis equivalent) or 10% of dutiable amount, whichever is higher |
| Ontario | Provincial markup (e.g. percentage of price); set by OCS |
| Alberta | Provincial markup |
| British Columbia | Provincial markup |
| Other provinces and territories | Varies by jurisdiction |
Canada (federal)
$1 per gram (or per gram of cannabis equivalent) or 10% of dutiable amount, whichever is higher
Cannabis products produced in or imported into Canada
Ontario
Provincial markup (e.g. percentage of price); set by OCS
Cannabis sold in Ontario
Ontario Cannabis Store (OCS) sets retail markups; private retailers charge accordingly.
Alberta
Provincial markup
Cannabis sold in Alberta
British Columbia
Provincial markup
Cannabis sold in BC
Other provinces and territories
Varies by jurisdiction
Cannabis sold in the respective province or territory
Each province/territory has its own markup or tax structure. Check provincial cannabis authorities.
Enforcement
Failure to comply with federal excise duty or provincial cannabis tax requirements can result in CRA and provincial enforcement, penalties, and loss of licence.
Official sources
Related guides
Step-by-step guides for charging canadian cannabis excise duty on Shopify.
Shopify compliance
This is a mandatory fee — merchants selling in covered jurisdictions are legally required to collect it. Shopify requires that mandatory fees be clearly disclosed to customers before checkout. Use a Shopify app like Magical Fees to automate collection and ensure compliance.
This information is maintained by the Magical Apps team and reviewed semi-annually. Always consult official government sources for the most current requirements.
Quick facts
- Regulation
- Excise Act, 2001 (Cannabis) and Provincial Cannabis Taxation
- Country
- Canada
- Jurisdictions
- 5
- Category
- Excise Taxes
Explore Canadian Cannabis Excise Duty in practice
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