Current Rates of Excise Taxes

From: Canada Revenue Agency

This page is a reference tool that lists the rates of excise tax under the Excise Tax Act on certain petroleum products, fuel-inefficient vehicles and air conditioners. It also states the rate of tax on insurance premiums, as set out in Part I of the Act. For more detailed technical information, refer to the Excise Tax Act or go to Excise taxes and other levies technical information.

Petroleum products

The following rates are set out in sections 9 and 9.1 of Schedule I to the Act:

Rates of excise tax on petroleum products
Petroleum Product Rate of excise tax (per litre)

Aviation fuel (other than aviation gasoline)

$0.04

Diesel fuel

$0.04

Unleaded aviation gasoline

$0.10

Unleaded gasoline

$0.10

Leaded aviation gasoline

$0.11

Leaded gasoline

$0.11

Fuel-inefficient vehicles

The excise tax on fuel-inefficient vehicles applies to automobiles (including station wagons, vans, and sport utility vehicles) designed primarily for use as passenger vehicles, but not including pickup trucks, vans equipped to accommodate 10 or more passengers, ambulances and hearses.

The excise tax on fuel-inefficient vehicles is calculated on the basis of the weighted fuel consumption rating. For purposes of this tax, the weighted fuel consumption rating is calculated by combining 55% of the city fuel consumption rating with 45% of the highway fuel consumption rating.

Automobiles that have a weighted fuel consumption rating of 13 or more litres per 100 kilometres are subject to the excise tax at the following rates, which are set out in subsection 6(1) of Schedule I to the Act:

Rates of excise tax on fuel-inefficient vehicles
Weighted fuel consumption rating Rate of excise tax

At least 13 litres but less than 14 litres per 100 kilometres

$1,000

At least 14 litres but less than 15 litres per 100 kilometres

$2,000

At least 15 litres but less than 16 litres per 100 kilometres

$3,000

16 or more litres per 100 kilometres

$4,000

Every year, the Canada Revenue Agency publishes a non-comprehensive list of automobiles and the associated excise tax rates for that model year. These lists are available by going to Lists of automobiles and associated rates of excise tax on fuel-inefficient vehicles.

Air conditioners

Under section 7 of Schedule I to the Act, the rate of excise tax on air conditioners designed for use in automobiles, station wagons, vans or trucks is $100.

Insurance premiums other than marine

Under subsection 4(1) of Part I of the Act, the rate of tax on insurance premiums other than marine is 10% on the net premiums paid or payable during the immediately preceding calendar year.

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