Home > You Asked Us > Government taxes on gasoline

Government taxes on gasoline

How is gasoline taxed?

There are two types of taxes on gasoline:

• Flat tax – The federal government charges an excise tax of 10 cents per litre on gasoline and 4 cents per litre on diesel. Provincial governments also collect gasoline taxes and these vary considerably by province. Lastly, three municipalities in Canada also apply taxes on gasoline. Vancouver, Victoria and Montreal charge taxes of 6.0, 2.5 and 1.5 cents a litre, respectively.
  
  
• Sales tax – The federal Goods and Services Tax (GST) is 7%, (except in Nova Scotia, New Brunswick and Newfoundland/Labrador where it is replaced by the Harmonized Sales Tax of 15%). In Quebec, there is an additional sales tax of 7.5%. Unlike flat taxes, the amount of sales tax can vary depending on the price of the fuel. GST/HST is charged on crude oil, refining and marketing costs and margins, the federal excise tax and provincial road taxes.

Need more information? See Taxes on Fuels.