Current Rates of Excise Taxes
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:
| 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:
| Weighted fuel consumption rating | Rate of excise tax |
|---|---|
| Less than 13 litres per 100 kilometres | $0 |
| 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 |
The Canada Revenue Agency has published a non-comprehensive table of automobiles and associated excise tax rates, arranged by model year. To access this searchable table, which is updated on an on-going basis as new vehicle information becomes available, go to 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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