As announced in the 2014 and 2015 Ontario Budgets, the government will propose amendments to the Highway Traffic Act that would modernize, by 2016, the treatment of certain unregistered road‑building machines that use public roads and highways. The government is currently reviewing potential registration and licensing requirements to be imposed on some of these vehicles, developing a registration process and meeting with various stakeholders to receive input on this measure. Learn more.
If you operate an internal combustion engine that uses clear diesel fuel, you will pay tax on the fuel you buy.
Every consumer who buys clear diesel fuel in Ontario pays fuel tax to a retailer.
Fuel tax is collected at the wholesale level and is included on the invoice to the retailer. The retailer, in turn, recovers the tax amount when the sale is made to the consumer. Fuel tax is included in the price you pay at the pump and, unlike the HST, does not appear as a separate line item on your receipt.
Some groups do not have to pay fuel tax and can ask for a refund. They are:
When you buy gasoline, aviation fuel or propane, you do not pay fuel tax. Instead, you pay gasoline tax.
The fuel tax rates are:
Tax-exempt fuel has been dyed red to aid in the enforcement of fuel tax law. The dye is supplied by the Minister of Finance and added to fuel by registered dyers.
You do not have to pay fuel tax on coloured (red) fuel when the fuel is used for:
First Nations individuals who are registered under the Indian Act (Canada) and First Nations bands may use coloured fuel in licensed vehicles as long as the fuel is acquired on a reserve.
Coloured fuel cannot be used in a licensed motor vehicle or in unlicensed recreation equipment, even if the motor vehicle is used in farming, construction, forestry, or mining.
All railways operating in Ontario as part of a public transportation system must register with the Ministry of Finance as a registered consumer. This includes railways that commercially transport goods or passengers.
Coloured or clear fuel can be used in railway locomotives. Regardless of the fuel used, the tax rate is 4.5 cents per litre and the tax must be remitted by the railway operator with their Fuel Tax Railway Return.
You need to register with the province if you are a
If you operate a commercial motor vehicle travelling into or out of Ontario, you must display on your vehicle IFTA registration decals issued by your base state or province.
If the vehicle is not registered under the IFTA then you must get a one-time permit from your state/province for each trip and keep it in your vehicle.
Each month the Ministry of Finance will mail you a personalized return that you need to complete. If you did not have any activity during the reporting period you still need to complete a return.
Didn’t get a return this month? Please call the Ministry of Finance at 1 866 ONT-TAXS (1 866 668-8297).
You can file your return:
Completed fuel tax returns are to be sent to the ministry by the 25th day of the month following the last day of your reporting period.
Registered manufacturers need to send their completed return by the 25th day of the second month following the month to which the return relates.