Gasoline tax
Learn about gasoline tax rules in Ontario, including the types of gasoline products, and who needs to register, report and pay gasoline tax.
This online book has multiple pages. Please click on the Table of Contents link at the top of the page for additional information related to this topic. This information does not replace the law found in the Gasoline Tax Act and related regulations. If you’re unsure about anything in this online book, please talk to a lawyer or an accountant.
Fuel Tax International Fuel Tax Agreement
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This overview provides general information about Ontario's gasoline tax rules. It should not be considered a substitute for the Gasoline Tax Act (the Act) and regulations.
Gasoline products and tax rates
Gasoline tax is included in the price you pay at the pump and, unlike the HST, does not appear as a separate line item on your receipt.
The tax rates on gasoline products are:
- unleaded gasoline – 9.0¢ per litre
- leaded gasoline – 17.7¢ per litre
- aviation fuel – 6.7¢ per litre; 2.7¢ per litre in Northern Ontario
Northern Ontario is defined as the geographic areas of:
- Algoma
- Cochrane
- Kenora
- Manitoulin
- Nipissing
- Parry Sound
- Rainy River
- Sudbury
- Thunder Bay
- Timiskaming
The lower rate of tax for Northern Ontario applies where the purchaser takes possession of the purchased fuel in Northern Ontario and the purchased fuel is transferred into the fuel tank of an aircraft in Northern Ontario.
Data: historical gasoline tax rates
Since 2004, a portion of the gasoline tax is given to municipalities for public transit.
Gasoline prices
The Ontario Ministry of Energy and Mines monitors gasoline prices across Ontario and provides data on these prices.
The federal government, through the Competition Bureau, ensures fair competition in gasoline markets.
Propane
The propane tax was removed as of July 1, 2025.
Propane wholesalers, retailers, importers, and exporters can apply for refunds of overpayments of propane tax paid prior to July 1, 2025. The deadline to apply for these refunds is July 1, 2027.
Anyone registered to deal in propane before July 1, 2025, must keep their business records for seven years, unless we give written permission to dispose of them earlier.
People who do not pay the tax
Everyone who buys gasoline products in Ontario must pay gasoline tax, no matter how they plan to use the products, except:
- members of the diplomatic corps
- visiting armed forces
- First Nations individuals and bands (as defined in the federal Indian Act) who acquire gasoline or aviation fuel from an authorized on-reserve retailer for their exclusive use.
For more information about Ontario’s exemption program for First Nations, refer to First Nations purchases of tax-exempt gas.
Under some conditions, businesses can ask for a refund of gasoline tax.
Learn more about the Ontario Gasoline Tax Refund Program
Learn more about Road-Building Machines Reclassified as Commercial Motor Vehicles
Register with the Ministry of Finance
You must register with the Ministry of Finance if you intend to conduct business as a:
- collector/wholesaler who collects tax
- importer
- exporter
- manufacturer
- interjurisdictional transporter of gasoline in bulk into or out of Ontario
- operator of commercial vehicles travelling into or out of Ontario that may be subject to the International Fuel Tax Agreement (IFTA) registration
The Minister of Finance (minister) may impose reasonable conditions, limitations and restrictions on permits, registrations or designations.
If you are buying or selling gasoline and you are not a registered collector or importer, you must include gasoline tax in the price until your registration is approved.
To register or get more information about registering:
- call the Ministry of Finance at
1-866-ONT-TAXS (668-8297) (1-866-668-8297 ) - when prompted, say gasoline
- you will be transferred to a representative who will assist you
Non-registered importers
Importers who are not registered must, upon entry into Ontario from outside Canada, pay to the minister an amount equal to the tax. This amount is payable by certified cheque, bank draft, or money order, at the time of entry. The Canada Border Services Agency (CBSA) collects this amount for Ontario at border entry points.
Qualified motor vehicles traveling into/out of Ontario
If you are an interjurisdictional carrier operating a qualified motor vehicle, you may register under the IFTA to obtain an IFTA licence and decals to display on your vehicle.
Read on: International Fuel Tax Agreement
If the vehicle is not licensed under IFTA and is considered a qualified motor vehicle, then a one‑time single trip permit must be purchased from each province or state in which you intend to travel.
Data: single trip permit agencies
Registrant list
We maintain a list of persons registered under the Act to help identify persons authorized by the minister to sell and distribute gasoline products. You can subscribe to email alerts to stay informed of changes to registrant status (e.g., authorized, suspended and cancelled registrations). View the registrant list.
Posting security
You may need to provide security through a surety bond or letter of credit before the minister will issue you a permit, registration certificate or designation.
In most cases, the amount of security required is an amount equal to three months' average tax collectable and payable or $1 million, whichever is greater.
Acceptable forms of security include:
- irrevocable Letters of Credit issued by and redeemable at an Ontario branch of a Canadian Chartered Bank in the standard form approved by the ministry
- Surety Bonds issued by financial institutions registered with the Financial Services Regulatory Authority of Ontario (FSRA) to deal in surety (list of registered financial institutions)
- cash (interest will not be paid)
Following are links to approved forms:
A new legal entity, which results from the reorganization of an existing collector or registrant, or any entity that undergoes a substantial change in ownership or control, must apply to the ministry for a new designation or registration certificate and must provide new or revised security to reflect the new designation.
File your return
You must file a monthly gasoline tax return, even if you had no activity during the reporting period.
You may face fines or penalties if your return or payment is late, incomplete, or if you don’t pay the full amount owing.
File and pay online
The fastest and most convenient way to file your return and make payments is online.
Use ONT-TAXS online to:
- file your return
- make secure payments
- access your account anytime
ONT-TAXS online is available 24/7 and provides instant confirmation of your submission.
If you cannot file online, you can:
- visit select ServiceOntario locations
- mail your return and payment to:
Ministry of Finance
33 King Street West, PO Box 620
Oshawa ON L1H 8E9
The Ministry of Finance will mail you a personalized tax return each month.
Direct deposit
The Ontario Ministry of Finance offers a direct deposit service where payments are deposited directly into your account at the bank of your choice.
Download: Direct Deposit Request / Direct Deposit Authorization
Gasoline retailers
Gasoline retailers are not required to complete returns; however, they must keep at their principal place of business, records and books of account for all gasoline purchases and sales for seven years.
View a list of forms and guides to help you complete your gasoline tax returns and schedules
Due dates
If you are a designated collector, registered importer or registered exporter, you must send us your completed returns, along with any gasoline tax collectable and payable, by the 21st day of the month following the month of the sale, import or export.
Ontario has an accelerated remittance program for gasoline tax collectors who remitted tax of more than $36 million in the previous calendar year.
These large gasoline tax collectors must:
- submit your completed returns by the last day of the month following the last day of your reporting period
- pay the tax in two equal instalments that are due on the last of the current reporting month and on the 15th day of the next reporting month
Interjurisdictional transporters must send us your completed returns by the 21st day of the month following the month in which the gasoline or aviation fuel was transported.
Registered manufacturers must submit your completed returns by the 21st day of the second month following the reporting period. Manufacturers who complete combined fuel and gasoline manufacturer returns can submit them to us by the 25th day of the second month following the reporting period without being penalized.
Penalties and offences
Ontario's enforcement program includes a range of audit, investigation and inspection activities. The Act provides for numerous fines and penalties. Here are some examples.
Failure to collect
A collector, importer, wholesaler, or retailer who fails to collect the required tax may be assessed a penalty equal to 110% of the tax not collected.
Any collector, importer, wholesaler, or retailer who fails to collect the tax required may be convicted and fined equal to three times the tax not collected.
Failure to file
You may be assessed penalties of 10% of the tax collectable and 5% of the tax payable if your returns are not filed, are filed late or if less than the required amount of tax is remitted.
Excess unverifiable losses
An unverifiable loss may exist where an amount of fuel or gasoline cannot be accounted for by registered collectors.
Over a 36-month period, tax collectors are required to reconcile the volume of products in opening inventories, received, or manufactured, with the volume of product, which can be accounted for by way of taxable sales, tax exempt sales, exports, closing inventories and losses from known causes (theft, fire, contamination, reported spillage).
A person’s unverifiable loss is that portion of the available inventory which cannot be shown, to the satisfaction of the Importers and exporters, and interjurisdictional transporters are still required to register with, and report to the minister. However, this agreement reduces the tax remitting, refund, and administrative requirements for importers and exporters not registered as collectors who engage in cross border transfers of gasoline, and aviation fuel.