Tobacco Tax
Tobacco tax applies to all tobacco products sold in Ontario. Tobacco products include cigarettes, cigars and other tobacco (e.g. loose, bidis, snuff, chewing, leaf, blunt wraps, water pipe and snus.)
If you are a retailer
If you sell cigarettes, they must be legal. Legal cigarettes are identified by:
- Ontario's yellow tear strip:
- the term "ON" printed on the outside of the package, and
- a purchase price that is more than $43.16 per carton.
As a retailer, you must have a valid vendor's permit and your wholesaler must hold a valid wholesaler's permit. To confirm whether your supplier is a registered wholesaler, please view the Tobacco Tax Registrant List.
If you are a wholesaler
If you sell tobacco for resale, you must register for a wholesaler's permit. If you wish to buy tobacco without the tax, you will need a collector designation to allow you to collect and remit the tax on tobacco you sell. Otherwise, you must pay an amount equal to the tax to your supplier when you buy the tobacco.
As a wholesaler, you must buy all your tobacco from a registered wholesaler or manufacturer. You may only sell or deliver the tobacco in Ontario to a retailer who holds a vendor's permit.
Visit the Forms & Publications page to learn more about tobacco tax. You can also browse for other topics that may apply to you or your business.
