It depends. Under CUSMA, a parcel shipped by courier from the United States can enter Canada tax-free below one value threshold and duty-free below a higher one. Above those thresholds, the CBSA collects GST/HST (and sometimes PST) plus any applicable duty, and the carrier may add a customs-clearance fee. The thresholds also depend on the shipping method (courier vs Canada Post) and the origin of the goods. Confirm the current CBSA thresholds and check the estimated landed cost shown when you request a rate.
Do you pay duty on every package from the USA?
No. Many small parcels enter Canada with no duty or tax, while others trigger charges. Three things decide it: the declared value of the contents, the origin of the goods (made in the US, Mexico, or elsewhere), and the shipping method (courier such as UPS, FedEx, or Purolator, or a postal service). It also helps to separate two things people often blur together: customs duty (a charge on certain imported goods based on their classification) and sales tax (GST/HST/PST), which applies far more broadly.
Key point: even a parcel that is duty-free can still owe sales tax. Duty and tax do not follow the same threshold.
Canada's de minimis thresholds (CUSMA)
CUSMA raised the de minimis thresholds for courier shipments from the United States and Mexico. In short: below a first threshold, no tax and no duty; between the two thresholds, sales tax may apply but not duty; above the higher threshold, both tax and duty may apply. Postal shipments (Canada Post) and goods from other countries generally follow the older, lower threshold. The values below are common reference points: always confirm the figures in force with the CBSA.
| Situation | Sales tax (GST/HST) | Customs duty |
|---|---|---|
| Courier from US/Mexico, low value | None below ~CA$40 | None below ~CA$150 |
| Courier from US/Mexico, higher value | May apply above ~CA$40 | May apply above ~CA$150 |
| Postal (Canada Post) or other country | May apply above ~CA$20 | May apply above ~CA$20 |
| Gift between individuals (marked as gift) | Exempt up to ~CA$60 | Exempt up to ~CA$60 |
Confirm, do not assume: de minimis thresholds, provincial tax rates, and CUSMA rules can change, and some goods (alcohol, tobacco, regulated products) have their own rules. Treat the values above as starting points, verify them with the CBSA, and rely on the estimated landed cost shown when you request a rate for your specific shipment.
Duty, sales tax, and clearance fees: three separate line items
When an import bill surprises you, it is usually because three different line items stack up. Understanding them separately makes the total easier to predict.
| Line item | What it is | When it applies |
|---|---|---|
| Customs duty | A charge on certain imported goods based on their classification (HS code) and origin | Above the duty threshold; often nil for CUSMA-eligible goods |
| Sales tax (GST/HST/PST) | The same tax as on a local purchase, calculated on the declared value | Above the tax threshold; rate depends on the destination province |
| Clearance fee | A carrier or broker charge for processing the import | Often on taxable shipments; varies by carrier and service |
How are the charges collected: at the door, or prepaid?
There are two models. Under DDU (delivered duty unpaid), the carrier advances the duty and tax to the CBSA and then collects from the recipient at delivery, often with a clearance fee: this is the classic pay-at-the-door surprise. Under DDP (delivered duty paid), the shipper settles the estimated duty and tax up front, so the recipient owes nothing extra on arrival. For a business shipping to Canadian customers, DDP gives a smoother experience, but not every service offers it.
How to reduce or predict the bill
- CUSMA origin: goods made in the US or Mexico that qualify under CUSMA are often duty-free (sales tax can still apply). A correct origin declaration matters.
- Accurate declared value: under-declaring is illegal and risks penalties; over-declaring makes you overpay. Declare the true transaction value.
- Choosing the shipping method: courier and postal do not share the same thresholds or the same clearance fees for the same parcel.
- Compare carriers and see the estimated landed cost before you buy the label, rather than assuming one carrier's rules.
This is exactly where comparing pays off. If you ship from the US to Canada, a free MesColis account with no contract shows several carriers' rates side by side, with an estimated landed cost (duty and tax included) and DDU/DDP options where available: you choose on the real delivered price, not a guess.
Frequently asked questions
How much can I import into Canada without paying duty?
For a courier shipment from the US or Mexico, customs duty generally applies only above roughly CA$150, and sales tax only above roughly CA$40 (postal shipments and other countries follow a lower threshold, around CA$20). These are reference points: confirm the thresholds in force with the CBSA and via the estimated cost at shipping time.
Do I pay duty on gifts sent from the USA?
There is a gift exemption for parcels between individuals up to about CA$60 when the shipment is properly marked as a gift. Above that, the excess portion may be taxable. Regulated items (alcohol, tobacco) are excluded from the gift exemption.
Why is the driver asking me to pay at the door?
That is a DDU shipment: the carrier advanced the duty, tax, and clearance fee to the CBSA and recovers it from the recipient. To avoid the surprise, the shipper can choose a DDP service that settles those amounts up front.
Does CUSMA remove all duty between the US and Canada?
No. CUSMA can remove customs duty on eligible goods (made in the region and correctly declared), but Canadian sales tax can still apply, and non-eligible or third-country goods can remain subject to duty.