Written by David Matrick, editor of CheapGasToronto.ca. Price figures come from the station reports published on this site; tax and policy facts link to their official sources. See our About page for editorial standards and our disclaimer for price accuracy notes.
Short answer: at an illustrative pump price of 179.9¢/L with zero federal excise, about 29.7¢ of every litre is tax: 9¢ Ontario gasoline tax and 20.7¢ HST. The federal consumer fuel charge has been zero since April 1, 2025. This example is a calculation, not today's reported Toronto price.
Finance Canada's September 2, 2026 announcement proposes keeping federal excise at zero through January 31, 2027, then restoring it in two steps. The CRA's September notice describes the extension as proposed legislation. If that schedule applies and the non-tax price stays fixed, each 5¢/L excise step would add 5.65¢/L including HST.
This guide lists each tax, shows how HST is calculated on top of the others, and works through the announced federal scenarios for a fill-up. Official source guidance was checked on October 7, 2026. The links are in each section.
Ontario fuel taxes and the announced excise scenario
| Tax | Gasoline | Diesel | Status checked October 7, 2026 |
|---|---|---|---|
| Ontario Gasoline Tax / Fuel Tax | 9.0¢/L | 9.0¢/L | Permanent since July 1, 2025 |
| Federal excise tax | 0¢/L under the announced extension (normally 10¢) | 0¢/L under the announced extension (normally 4¢) | Reduction began April 20, 2026; extension through January 31, 2027 is proposed |
| Federal fuel charge (carbon price) | 0¢/L | 0¢/L | Set to zero April 1, 2025 |
| HST | 13% of the price before HST, including the taxes above | Unchanged | |
Ontario gasoline tax: 9¢ per litre, now permanent
Ontario first cut its gasoline tax by 5.7¢/L and its fuel (diesel) tax by 5.3¢/L on July 1, 2022, as a temporary measure. The cut was extended several times. Effective July 1, 2025, the province made it permanent, fixing both rates at 9¢ per litre. The 2026 Ontario Budget says the measure has delivered $2.1 billion in relief since 2022. Sources: Ontario gasoline tax, 2026 Ontario Budget.
Federal excise: proposed zero rate through January 31, 2027
The federal excise tax is a flat 10¢/L on gasoline and 4¢/L on diesel. Ottawa suspended it on April 20, 2026. On September 2, 2026, the government announced a proposal to extend the zero rate through January 31, 2027, followed by a two-step return. The CRA notice distinguishes the original reduction through September 7 from the proposed extension starting September 8:
| Period | Gasoline excise | Diesel excise |
|---|---|---|
| April 20 – September 7, 2026: original reduction | 0¢/L | 0¢/L |
| September 8, 2026 – January 31, 2027: proposed extension | 0¢/L | 0¢/L |
| February 1 – March 31, 2027: proposed half-rate period | 5¢/L | 2¢/L |
| From April 1, 2027: announced return to regular rates | 10¢/L | 4¢/L |
Sources: Finance Canada announcement, September 2, 2026 and CRA notice ETSL82. Check the current official guidance before relying on future rates.
The carbon charge is gone, and it was the biggest one
From April 2024 to March 2025, the federal fuel charge on gasoline in Ontario was 17.61¢/L. With HST charged on top, that came to almost 20¢/L at the pump. The rate has been zero since April 1, 2025. It is a separate tax from the excise tax, so suspending one does not change the other. Source: CRA fuel charge rates.
How HST is calculated (it applies to the other taxes too)
HST is 13% of the price before HST, and that pre-HST price already includes the provincial tax and any federal excise. At an unchanged non-tax price, a 1¢ change in excise would change the pump price by 1.13¢. To find the HST inside a posted price, multiply by 13/113 (about 11.5%), not by 13%. Source: CRA GST/HST rates.
Worked example: a 179.9¢/L Toronto price
This example uses a 179.9¢/L pump price and the zero-excise scenario. It is not a current station report or a forecast. The calculation breaks down as:
| HST (179.9 × 13/113) | 20.7¢ |
| Ontario gasoline tax | 9.0¢ |
| Federal excise (suspended) | 0.0¢ |
| Total tax | 29.7¢ (16.5% of the price) |
| Fuel, refining, distribution and retail margin | 150.2¢ |
On a 50-litre fill-up that's $89.95, of which about $14.85 is tax.
What the proposed 2027 rates would add at a fixed non-tax price
Suppose the fuel and margin part of the price (150.2¢ above) stays the same. Then, with HST applied on top of the excise:
- February 1, 2027 scenario: +5¢ excise → +5.65¢/L (about 185.6¢/L in the example). Diesel: +2¢ → +2.26¢/L.
- April 1, 2027 scenario: another +5¢ → +11.3¢/L compared with the zero-excise example (191.2¢/L). Diesel: +4.52¢/L in total.
- On a 50-litre gasoline fill-up, that is about $2.83 more in the February scenario and $5.65 more in the April scenario.
These scenarios depend on the proposed schedule. Actual pump prices can move by different amounts. Crude oil, wholesale gasoline and retail competition change every day, and stations don't all adjust at the same moment. Treat these numbers as the tax part of the change, not a forecast of the pump price.
What is not a tax
About 150¢ of a 179.9¢ litre goes to crude oil, refining, transport and the retailer. That part moves daily, and it's why two Toronto stations a few kilometres apart can differ by 10–15¢/L on the same afternoon. The standard fixed per-litre fuel taxes are the same across Ontario stations, while the HST amount varies with the price. Compare the final posted price using today's cheapest Toronto stations or the average by Ontario city.
Frequently asked questions
Is there still a carbon tax on gas in Ontario?
No. The federal fuel charge was set to zero on April 1, 2025, and Ontario has no provincial carbon charge on gasoline.
When does the federal gas tax come back?
The announced proposal would restore 5¢/L on gasoline from February 1, 2027 and the full 10¢/L from April 1, 2027. CRA's September notice treats the extension as proposed legislation; check its latest guidance for changes.
Is Ontario's 9¢ gas tax cut temporary?
No. It was temporary from 2022 to mid-2025 and became permanent on July 1, 2025.
Do I pay HST on the gas tax?
Yes. HST is charged on the price including the provincial gasoline tax and any federal excise.
Correction, October 7, 2026: the extension was announced on September 2, not September 8. This article now distinguishes the proposed schedule from enacted rates, labels the 179.9¢/L price as an illustration and corrects rounding in the fixed-price February example.
Related: Ontario gas price trends in 2026 · Best times to fill up in Toronto