Beer sold in Alberta is taxed in three layers: a provincial wholesale markup of $1.25 per litre collected by the Alberta Gaming, Liquor and Cannabis Commission (AGLC), a federal excise duty of $37.69 per hectolitre, and the 5% federal GST at the checkout. Alberta has no provincial sales tax, so the AGLC markup does the revenue work that PST or HST does elsewhere in Canada. Small brewers pay reduced rates at both the provincial and federal levels, which is why a can from a local craft brewery often carries a noticeably lighter tax load than one from a multinational.
How the AGLC Markup Replaces a Provincial Sales Tax
The AGLC is the legal importer of record for all liquor sold in Alberta. Every brewery and supplier sells to retailers through the commission, and every licensee pays the same wholesale price regardless of store size or location.1AGLC. About Liquor in Alberta Before beer reaches a shelf, the AGLC has already built the provincial markup, container deposits, recycling fees, and federal duties and taxes into the price retailers pay.
Because there is no provincial sales tax in Alberta, the markup is the province’s primary revenue tool on alcohol. Retailers set their own shelf prices above wholesale, which is why identical products sell for different amounts across stores. The system operates under the Gaming, Liquor and Cannabis Act, which gives the commission authority over pricing and distribution.
Standard Markup Rate on Beer
For beer with an alcohol content of 11.9% or less by volume, the AGLC charges a flat $1.25 per litre.2AGLC. Liquor Markup Rate Schedule That is the baseline for any producer above the small-brewer threshold. The rate applies per litre regardless of container size, so a 355 mL can, a 473 mL tall boy, and a one-litre bottle each carry a proportional share.
Beverages below roughly 1% alcohol by volume do not appear on the markup schedule at all.2AGLC. Liquor Markup Rate Schedule Genuinely non-alcoholic beers escape the provincial markup, which helps explain the widening price gap between regular and alcohol-free options.
Reduced Markup for Small Brewers
Breweries with less than 300,000 hectolitres of annual worldwide production qualify for a graduated markup that ranges from $0.10 to $1.13 per litre, depending on how much they produce.2AGLC. Liquor Markup Rate Schedule The $0.10 rate applies to the smallest operations. As annual production grows, the per-litre rate climbs through a series of tiers until it meets the standard $1.25 at the top end.
A craft brewery paying $0.10 per litre has a $1.15-per-litre cost advantage over a multinational at the wholesale level. The 300,000-hectolitre threshold is measured against total worldwide output, not just what a brewery sells in Alberta, so a mid-sized brewer with facilities in other provinces or countries counts all of that volume toward its tier. Breweries report their annual worldwide production to the AGLC to confirm placement.
Federal Excise Duty on Beer
Every beer sold in Canada also carries a federal excise duty collected under the Excise Act. For the 2026–27 fiscal year, the standard rate on beer above 2.5% alcohol by volume is $37.69 per hectolitre.3Canada Revenue Agency. EDBN36 Adjusted Rates of Excise Duty on Beer Effective April 1, 2026 That works out to about $0.377 per litre, or roughly 13 cents on a 355 mL can. The duty is paid by the manufacturer or importer before the product enters the retail chain, so it never shows up as a separate charge on your receipt.
The Excise Act indexes this rate to Consumer Price Index inflation each April 1, but the federal government has capped the annual increase at 2% through at least fiscal year 2027–28.4Department of Finance Canada. Extending Alcohol Excise Duty Relief to Support Canadian Businesses Without the cap, the full CPI adjustment would have pushed rates higher.
Reduced Excise Rates for Canadian Brewers
Breweries producing beer in Canada get sharply reduced excise rates on their first 75,000 hectolitres each calendar year. With the additional 50% reduction on the first 15,000 hectolitres that the federal government extended in April 2026, the 2026–27 effective rates are:4Department of Finance Canada. Extending Alcohol Excise Duty Relief to Support Canadian Businesses
- First 2,000 hL: $1.88 per hectolitre (95% reduction)
- 2,001 to 5,000 hL: $3.77 per hectolitre (90% reduction)
- 5,001 to 15,000 hL: $7.54 per hectolitre (80% reduction)
- 15,001 to 50,000 hL: $26.38 per hectolitre (30% reduction)
- 50,001 to 75,000 hL: $32.04 per hectolitre (15% reduction)
- Above 75,000 hL: $37.69 per hectolitre (full rate)
A small Alberta craft brewery producing 2,000 hectolitres pays about $1.88 per hectolitre in federal excise while also qualifying for the lowest provincial markup tier. The extension of the 50% reduction on the first 15,000 hectolitres, which took effect April 1, 2026 for two years, provides up to about $90,000 in additional annual savings per brewer.
GST at the Register
The 5% federal GST applies to the final retail price of beer at the till. Unlike the excise duty and the provincial markup, which are embedded in the wholesale cost, GST appears as a separate line on the receipt. Alberta does not add a provincial sales tax or harmonized sales tax, so 5% is the only point-of-sale tax a consumer pays on beer in the province.
Because the shelf price already contains the AGLC markup, excise duty, and container fees, the GST is calculated on a figure that has those costs built in. You are effectively paying tax on a tax-inclusive price. Even so, the total consumer-facing rate stays well below what buyers see in provinces that charge HST at 13% or 15% on top of similar markup structures.
Container Deposits and Recycling Fees
Every beer container sold in Alberta carries a refundable deposit: $0.10 for containers one litre or smaller, and $0.25 for containers larger than one litre.5Alberta Depot. Frequently Asked Questions You pay the deposit at the register and get it back when you return the empty to a bottle depot.
A non-refundable Container Recycling Fee covers the cost of processing the materials. The fee varies by container type and size. Aluminum cans under one litre carry the lowest fee at about $0.01, while glass bottles cost more to recycle and carry higher fees. The Beverage Container Management Board sets these amounts, not the AGLC, and they shift periodically based on recycling market conditions. Both the deposit and the recycling fee are folded into the wholesale price, so retailers do not handle them as separate charges.
Bringing Beer Into Alberta From Outside the Province
Returning to Canada from an international trip of 48 hours or more, you can bring up to 8.5 litres of beer duty-free as part of your personal exemption, which is roughly a 24-pack of standard cans.6Travel.gc.ca. Personal Exemptions Mini Guide Anything above that amount is subject to full duties and taxes at the border.
Moving beer between Canadian provinces is more restricted than many people expect. Alberta and British Columbia have opened direct-to-consumer wine shipping, but beer does not enjoy the same freedom. Ordering beer online from a brewery in another province for shipment to an Alberta address remains restricted in most cases, and carrying large quantities across provincial lines for personal use can run into provincial liquor importation rules. For now, the simplest legal route to out-of-province beer is buying it from an Alberta retailer that has sourced it through the AGLC.