Canadian Import Duties: Complete Guide for 2026

Canadian import duties are the taxes the Canada Border Services Agency (CBSA) charges on goods entering Canada, with rates that depend on the product's HS code, country of origin, and applicable trade agreements. Shipments below the de minimis thresholds — CAD 20 by mail, CAD 40 by courier, and CAD 60 for gifts — enter free of duty and taxes. Understanding how these work is essential for giving your customers accurate pricing.

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:

• Goods by mail: CAD 20 — shipments valued below this are free of duty and taxes; above it, GST/HST may apply
• Courier shipments: CAD 40 — commercial courier deliveries valued below this are free of duty and taxes
• Gifts by mail: CAD 60 — gifts valued up to this are duty- and tax-free

This means most e-commerce shipments to Canada will owe GST at minimum — a $25 order by mail already exceeds the CAD 20 threshold. 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.

Frequently Asked Questions

How much is Canadian import duty?

The rate depends on the product's HS code and country of origin, under the CBSA Customs Tariff. Canada uses three rate columns — Most Favoured Nation (MFN) for WTO members, General Preferential Tariff (GPT) for developing countries, and USMCA rates for goods made in the US or Mexico. Chinese-origin goods often face rates around 18%, while USMCA-eligible goods enter at 0%.

What is the Canadian de minimis threshold?

Canada's de minimis limits are CAD 20 for goods by mail, CAD 40 for courier shipments, and CAD 60 for gifts by mail — not the CA$150 figure sometimes quoted online. Shipments below the applicable threshold enter free of duty and taxes; above it, GST/HST applies.

Do I pay GST on imports to Canada?

Yes — Canada charges 5% GST on imports above the de minimis thresholds (CAD 20 by mail, CAD 40 by courier, CAD 60 for gifts by mail), and provinces that use HST charge 13-15% (Ontario 13%, most Atlantic provinces 15%). GST is calculated on the product value plus shipping plus any duty, so it compounds on top of the duty amount.

How do I pay Canadian customs duties?

CBSA assesses the duty and tax when the shipment crosses the border. For courier shipments the carrier usually pays the assessment and bills the recipient with an invoice, and for goods by mail Canada Post collects the amount before releasing the package.

Can I ship duty-free to Canada?

Only shipments below the de minimis thresholds — CAD 20 by mail, CAD 40 by courier, CAD 60 for gifts by mail — enter free of duty and taxes. Otherwise, goods made in the US or Mexico can still avoid duty under USMCA preferential rates, though GST/HST still applies.

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

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