Canadian Import Duties: Complete Guide for 2026

If you ship to Canada, understanding Canadian import duties is essential for giving your customers accurate pricing. The Canada Border Services Agency (CBSA) administers customs duties on all goods entering Canada, and the rates depend on the product's HS code, country of origin, and applicable trade agreements. This guide covers everything Shopify merchants need to know about Canadian import duties, taxes, and how to offer transparent pricing to Canadian customers.

How Canadian Import Duties Work

Canada uses the Customs Tariff schedule based on the global Harmonized System (HS) code. Every product imported into Canada is classified under a 10-digit HS code, which determines the applicable duty rate. The CBSA collects duties at the border, and the rate depends on the product type and its country of origin.

The Canadian tariff schedule has three columns: the Most Favoured Nation (MFN) rate for WTO members, the General Preferential Tariff (GPT) for developing countries, and the USMCA preferential rate for goods from the United States and Mexico. Understanding which rate applies to your products is key to accurate duty estimation.

Canada's De Minimis Thresholds

Canada has relatively low de minimis thresholds compared to other countries:

• Duties: CAD $150 — shipments valued below this are duty-free
• Taxes: CAD $20 — shipments valued below this are tax-free (GST/HST)

This means most e-commerce shipments to Canada will owe GST at minimum. Even a $25 order will owe Canadian GST. For Shopify merchants, this makes it especially important to show duties and taxes at checkout — nearly every international order to Canada will face some charge.

Canadian Import Tax (GST/HST)

Canada charges a 5% Goods and Services Tax (GST) on all imported goods. Some provinces also charge a Provincial Sales Tax (PST) or Harmonized Sales Tax (HST) on top of the GST:

• GST only (5%): Alberta, British Columbia, Manitoba, Northwest Territories, Nunavut, Saskatchewan, Yukon
• HST (13-15%): New Brunswick (15%), Newfoundland (15%), Nova Scotia (15%), Ontario (13%), Prince Edward Island (15%)
• GST + QST (14.975%): Quebec

GST is calculated on the product value plus shipping cost plus any duty owed — so it compounds on top of the duty amount. RateTell handles these provincial variations automatically at checkout.

How to Calculate Canadian Import Duties

Here's a sample calculation for a $100 cotton t-shirt (HS code 6109.10) shipped from the US to Ontario:

• Product value: CAD $135 (assuming exchange rate)
• Shipping: CAD $20
• Duty rate (USMCA preferential): 0% (manufactured in US)
• Import duty: $0
• Ontario HST (13%): ($135 + $20 + $0) × 13% = $20.15
• Total landed cost: $135 + $20 + $0 + $20.15 = $175.15

Without USMCA preferential treatment (e.g., goods manufactured in China), the duty rate would be 18%, adding $24.30 in duty — and the HST would be calculated on top of that higher amount.

USMCA and Preferential Rates

The United States-Mexico-Canada Agreement (USMCA) eliminates or reduces duties for goods manufactured in North America. To qualify, products must meet USMCA rules of origin — meaning they must be substantially made in the US, Mexico, or Canada, not just shipped through those countries.

For Shopify merchants sourcing products from US manufacturers, USMCA can significantly reduce duty costs for Canadian customers. However, the rules are complex and vary by product category. RateTell automatically applies the correct preferential rate based on your product's HS code and declared country of origin.

Related guides: Irish Customs Charges · EU Import Duty · UK Import Duty

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