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Gas taxes in Alberta have changed more in the last two years than in the previous twenty. The federal consumer carbon levy is gone, the federal excise tax is on a temporary holiday, and the provincial fuel tax — which many Calgarians still believe doesn't exist — is back and indexed to oil prices. Here is exactly what you pay on every litre in June 2026, in plain language.
What's in a Calgary litre right now (June 2026)
- Alberta provincial fuel tax: 13.0¢/L. Reinstated April 2024 after the 2022–23 suspension; reviewed quarterly against WTI (see schedule below).
- Federal excise tax: 0¢/L — temporarily. Ottawa suspended the 10¢/L gasoline excise (4¢ on diesel) from April 20 to September 7, 2026 as an affordability measure during this spring's oil-price spike.
- Federal consumer carbon levy: 0¢/L. Cancelled effective April 1, 2025 (it was 17.6¢/L at its final 2024 level). Nothing is now charged at the pump for carbon.
- GST: 5%, embedded in the posted price — about 7.4¢ on a 155¢ litre. GST applies to the tax-inclusive price, so it is genuinely a tax on a tax.
Add it up and a 155¢/L fill in Calgary today carries roughly 20–21¢ of tax per litre — the lowest combined gas-tax load Albertans have paid in decades. When the excise holiday ends in September, that returns to about 30–31¢/L (still the lowest in Canada).
The Alberta fuel tax: 13¢, but oil-price-indexed
Alberta's "no provincial fuel tax" reputation is out of date. The province suspended its 13¢/L tax during the 2022–23 price spikes, then brought it back — with a twist. Since April 2024 the rate is set each quarter from the average price of WTI crude:
- WTI under US$80 → full 13¢/L (the rate in effect now)
- WTI US$80–84.99 → 9¢/L
- WTI US$85–89.99 → 4.5¢/L
- WTI US$90 or higher → 0¢/L (fully suspended)
The logic: when oil is expensive, the provincial treasury is flush with royalties and drivers get relief; when oil is cheap, the tax returns. For drivers it means Alberta pump prices have a built-in shock absorber that no other province offers — worth remembering when prices spike and headlines follow. To see exactly how the other nine provinces stack their fuel taxes, there's a full province-by-province gas tax table and calculator on our national site.
The carbon levy is gone — what that changed
For years the federal consumer carbon levy was the most argued-about 17 cents in Alberta. It ended on April 1, 2025, when the federal government cancelled consumer-facing carbon pricing nationally and dropped the requirement for provinces to impose their own. The Canada Carbon Rebate ended with it. Industrial emitters in Alberta still pay under the provincial TIER system, but that cost reaches the pump only indirectly, through refining economics.
The practical effect was visible immediately: Calgary prices dropped roughly the full levy amount within days of the change, and the year-over-year comparisons you see in 2026 still partly reflect that one-time reset.
The federal excise holiday (April 20 – September 7, 2026)
The 10¢/L federal excise on gasoline had been unchanged since 1995 — until this spring, when global oil disruptions pushed prices up and Ottawa responded by suspending the excise on gasoline, diesel and aviation fuel until Labour Day. That is why Calgary prices in late April fell even as crude rose. Two things to know: the suspension is national (every province got the same 10¢ relief), and it is scheduled to end September 7, 2026 — build that into any fall fuel budgeting.
GST: the quiet multiplier
The 5% GST applies to the full pump price including the other taxes. The GST share of a posted price is price ÷ 21 — about 7.4¢ at 155¢/L, but nearly 9¢ when prices touch 185¢. Businesses recover GST on commercial fuel through input tax credits; consumers don't, so the burden lands on personal fill-ups. Alberta's advantage here is structural: HST provinces pay 13–15% sales tax on fuel where Albertans pay 5%.
Gas tax by province (mid-2026)
Approximate provincial tax loads on a litre of regular gasoline in major cities, excluding the (currently suspended, nationally equal) federal excise and each province's sales tax treatment:
- Calgary / Edmonton: 13¢ provincial fuel tax · 5% GST
- Vancouver: ~14.5¢ BC motor fuel tax + ~18.5¢ TransLink transit levy ≈ 33¢ · 5% GST (BC's consumer carbon tax was also repealed in April 2025)
- Saskatoon / Regina: 15¢ provincial fuel tax · 5% GST
- Winnipeg: ~12.5¢ provincial fuel tax · 5% GST
- Toronto: 9¢ provincial fuel tax (Ontario's rate cut, repeatedly extended) · 13% HST
- Montreal: ~19¢ provincial fuel tax + cap-and-trade carbon costs (~10¢) · ~15% QST+GST
- Atlantic cities: roughly 8–16¢ provincial fuel tax depending on province · 15% HST
Rates shift with provincial budgets — treat these as the mid-2026 picture rather than gospel. The headline is unchanged either way: Alberta has the lightest total tax load on gasoline in Canada, by a wide margin once sales tax is counted.
Why Calgary prices aren't 40¢ below Toronto's
If Alberta's tax advantage is 20–30¢/L, why is the street-price gap to HST provinces usually smaller? Because taxes are only one layer: crude cost and refining margins dominate the price, Alberta's two refining hubs price wholesale gasoline against continental markets (not local crude), and healthy demand keeps Calgary retail margins comfortable. Taxes set the floor difference; markets eat part of it.
What you can control
You can't vote a tax away at the pump, but every litre you don't buy is taxed at 100% off. The practical levers are the same as always: buy at the bottom of Calgary's weekly price cycle, pick the right station with the live cheapest list or the price map, check tomorrow's forecast before a big fill, and drive like fuel costs money — trip planning routinely saves more than any tax change.
FAQ
How much tax is on a litre of gas in Alberta in 2026?
As of June 2026: 13 cents of Alberta provincial fuel tax, 0 cents of federal excise (suspended April 20 to September 7, 2026; normally 10 cents), 0 cents of consumer carbon levy (cancelled April 2025), plus 5% GST embedded in the pump price (about 7–8 cents at typical prices). Total: roughly 20–21 cents per litre during the suspension, about 30–31 cents once the federal excise returns.
Is there still a carbon tax on gasoline in Alberta?
No. The federal consumer carbon levy (17.6 cents per litre at its 2024 level) was cancelled effective April 1, 2025, and the federal requirement for provinces to price consumer fuel emissions was removed. Industrial emitters in Alberta still pay carbon pricing under the provincial TIER system, but nothing is charged at the pump.
What is the Alberta fuel tax and does it change?
Alberta charges a provincial fuel tax of up to 13 cents per litre, reviewed quarterly against oil prices: the full 13 cents applies while the quarterly average WTI price is under US$80; it drops to 9 cents at US$80–84.99, to 4.5 cents at US$85–89.99, and is fully suspended at US$90 or higher.
Which province has the highest gas tax in Canada?
Quebec and British Columbia carry the heaviest provincial loads. Metro Vancouver drivers pay BC’s motor fuel tax plus a dedicated transit levy (over 30 cents per litre combined), and Quebec adds about 19 cents of provincial tax plus cap-and-trade carbon costs. HST provinces (Ontario and the Atlantic provinces) also pay 13–15% sales tax on fuel versus Alberta’s 5% GST.
When does the federal gas tax holiday end?
The federal fuel excise suspension runs April 20 through September 7, 2026 (Labour Day). After that, the 10-cent-per-litre excise on gasoline and 4-cent rate on diesel return unless the suspension is extended.
Related: Gas Price Trends in Alberta 2026 · 5 Ways to Save on Gas in Calgary · Cheapest diesel in Calgary