How to Ship from the US to Canada: Complete Guide (2026)

Introduction

Canada is the United States' largest trading partner. Sharing the world's longest international border and $900+ billion in annual bilateral trade, the US-Canada shipping corridor is one of the busiest in the world. With 38 million people concentrated primarily along the Toronto–Ottawa–Montreal corridor and the Vancouver–Calgary axis, Canada represents an enormous and accessible market for American sellers.

Geographic proximity creates an illusion of simplicity. Many US shippers assume Canada is "basically the same" as domestic shipping. It's not. Canada has some of the lowest de minimis thresholds in the developed world, complex provincial tax structures, and carrier brokerage fees that can blindside both merchants and their customers. Ship without understanding these rules and you'll face angry customers, rejected packages, and avoidable fees.

This guide covers everything you need to know about shipping from the US to Canada in 2026—real rates, USMCA duty benefits, the brokerage fee trap, provincial tax differences, and how to optimize every shipment.

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The US-Canada Trade Relationship

The United States and Canada operate under the CUSMA (Canada-United States-Mexico Agreement)—known in the US as USMCA, which replaced NAFTA in 2020. This agreement governs tariff rates, rules of origin, and trade facilitation between the three countries.

For shippers, CUSMA/USMCA matters because:

• Most goods manufactured in the US (meeting rules of origin) qualify for 0% import duty into Canada
• Rules of origin typically require that goods be "substantially transformed" in the US—meaning assembled, manufactured, or processed in the US using US or CUSMA-region materials
• You can claim USMCA preferential treatment by including a Certificate of Origin or a statement on the commercial invoice

However, USMCA duty exemptions only apply to the duty component—Canadian GST/HST is always collected regardless of origin.

Important 2025–2026 Note: Trade tensions between the US and Canada led to temporary tariff measures in early 2025. While most consumer goods remain under USMCA rates, check the Canada Border Services Agency (CBSA) website for current status on specific product categories, as tariff conditions have fluctuated.

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Canada's De Minimis Threshold: The Lowest in the Developed World

This is the single most important thing US shippers need to understand about Canada.

Canada's de minimis threshold is only CAD $20 (approximately $15 USD).

This means virtually every commercial package shipped to Canada—regardless of value—is subject to customs assessment. Compare this to the US threshold of $800, the UK's £135, or Australia's AUD $1,000. Canada's threshold is strikingly low and has not been adjusted for inflation since the early 1990s.

What this means in practice:

• A $25 phone case shipped to Toronto will be assessed for GST/HST
• There is no "low-value" exemption for most commercial goods
• Your Canadian customers should expect to pay taxes on virtually every order

The one meaningful exemption: gifts valued under CAD $60 are duty-free, but this applies only to true personal gifts (not commercial sales disguised as gifts—customs officers look for this).

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Canadian Taxes: GST, HST, and Provincial Variations

Canada's tax system for imports involves federal and provincial components:

Federal GST (Goods and Services Tax)

The federal GST is 5% and applies nationwide to all imported goods above CAD $20.

HST (Harmonized Sales Tax)

Several provinces have harmonized their provincial sales tax with federal GST into a single HST rate:

Provinces with Separate Provincial Taxes

Alberta is the most tax-friendly destination—with no provincial sales tax, customers there pay only the 5% federal GST on imports.

Example Tax Calculation

A $150 USD order shipped to Toronto, Ontario:

• Converted to CAD: ~$205 CAD
• GST component: 5% of $205 = $10.25
• PST/HST component: 8% provincial = $16.40
• Total HST (13%): $26.65 CAD

Add any applicable import duty (if not USMCA-covered): 0–12% depending on product category.

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Import Duties: What You'll Owe

Under CUSMA/USMCA, most goods manufactured in the US enter Canada duty-free. Common duty rates for goods that don't qualify:

For most US-made consumer products, the duty rate under USMCA is 0%. The real cost driver for Canadian imports is GST/HST, not import duty.

To claim USMCA preferential tariff rates, include a statement on your commercial invoice: "I certify that the goods described in this document qualify as originating goods under the terms of the Canada-United States-Mexico Agreement." For shipments under $2,500 CAD, this declaration on the invoice is sufficient—no separate certificate is needed.

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Best Carriers for Shipping US to Canada

USPS (United States Postal Service)

USPS delivers into Canada via Canada Post, which handles all last-mile delivery. This arrangement has a critical advantage: Canada Post does not charge brokerage fees on packages delivered through this partnership. Customers pay only the taxes owed—no extra handling charges.

USPS also offers the lowest retail rates for packages under 4–5 lbs destined for Canada.

USPS Services:

• First-Class Package International: For items under 4 lbs. Transit 7–21 days. Budget option.
• Priority Mail International: Up to 70 lbs, 6–10 days. Best value for most packages.
• Priority Mail Express International: 3–5 days, up to 70 lbs. Fast and affordable compared to couriers.

Key advantage: No brokerage fees. Customers pay taxes only.

UPS

UPS has excellent coverage in Canada and reliable transit times, but the brokerage fee situation is significant (see below). UPS Standard to Canada is their most economical service for ground-equivalent shipping.

UPS Services:

• Worldwide Express: 1–2 business days
• Worldwide Expedited: 3–5 business days
• Standard to Canada: 3–7 business days (ground-equivalent)

Warning: UPS charges brokerage fees unless you prepay customs or explicitly arrange duty/tax payment upfront.

FedEx

FedEx offers strong Canadian coverage with particularly good service to major urban centers. Similar to UPS, brokerage fees apply unless arranged in advance.

FedEx Services:

• International Priority: 1–3 business days
• International Economy: 3–7 business days
• International Ground: Most economical for heavier packages

Purolator (via FedEx partnership)

Purolator is Canada's largest domestic carrier, owned partly by Canada Post. FedEx has a partnership that routes some shipments through Purolator's network. For deliveries to Canadian addresses outside major cities, this can improve reliability.

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The Brokerage Fee Trap

This is the most important cost factor most US shippers underestimate when shipping to Canada via UPS or FedEx.

What is a brokerage fee? When a courier like UPS or FedEx clears your package through Canadian customs, they charge a customs brokerage fee for the administrative work of filing the customs entry. This fee is charged to the recipient—your customer—upon delivery.

Typical brokerage fees:

• UPS Standard to Canada: $10–$40+ depending on declared value
• FedEx International Economy/Ground: $8–$32+
• Both carriers add additional fees for "disbursement" (paying duties and taxes on your behalf)

Example: A customer in Toronto orders a $80 item. They expect to pay maybe $10 in GST. Instead, they get a knock on the door and a bill for:

• GST/HST: $10.40
• UPS Brokerage fee: $24.75
• Disbursement fee: $4.50
• Total surprise charges: $39.65

For an $80 item, that's nearly 50% added at the door. Many customers refuse delivery. The package gets returned. You eat the shipping cost.

How to Avoid Brokerage Fees

Option 1: Use USPS. USPS delivers through Canada Post with no brokerage fees. Customers pay taxes only—no extra handling charges. This is the single most impactful way to improve customer experience on Canadian orders.

Option 2: Use UPS or FedEx with prepaid duties. Both carriers offer a "DDP" (Delivered Duty Paid) or prepaid brokerage option where you pay the brokerage fee at shipping time. This adds to your shipping cost but eliminates surprise charges for customers.

Option 3: Enroll in UPS's EPSF (Enhanced Pre-clearance) or FedEx's self-clearance programs. For high-volume shippers, these programs reduce brokerage fees significantly.

For most small-to-medium shippers sending packages under 5 lbs, USPS Priority Mail International is the sweet spot—competitive rates, no brokerage fees, reliable tracking through Canada Post.

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Real Shipping Rates: US to Toronto (2026)

Representative rates from a New York zip code (10001) to Toronto (M5H):

1 lb Package to Toronto

2 lb Package to Toronto

5 lb Package to Toronto

> Note: Brokerage fees are estimates—actual amounts depend on declared value and UPS/FedEx rate structures at time of delivery. Discounted rates through tools like Atoship can reduce base shipping costs by 30–50%.

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Required Documentation for Canada

Commercial Invoice Required for all courier shipments. Must include:

• Shipper and recipient name, address, phone
• Detailed description of each item (be specific—"clothing" is not enough; "women's cotton T-shirt" is)
• HS tariff code (minimum 6 digits)
• Country of origin
• Declared value per item in USD
• Total package value
• Whether shipment is a sale, gift, or personal item
• USMCA origin declaration if claiming preferential rates

CN22/CN23 (USPS only) USPS requires CN22 for packages under $400 and CN23 for packages $400 and above. Include all item details as above.

CBSA B3 Entry For commercial shipments over CAD $3,300, a formal B3 customs entry is required, typically filed by a licensed customs broker. Most consumer packages don't reach this threshold.

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What You Cannot Ship to Canada

Canada has specific import restrictions, some of which differ from US rules:

Prohibited:

• Marijuana and cannabis products (despite Canada's legalization, importing remains illegal)
• Hate propaganda and materials promoting discrimination
• Counterfeit goods
• Some firearms and ammunition (strict licensing requirements)
• Unauthorized switchblades, gravity knives, and certain other weapons

Restricted (requires permits/documentation):

• Alcohol and spirits (requires provincial liquor board approval and permits)
• Tobacco and e-cigarettes (excise tax permits required)
• Fresh fruits and vegetables (CFIA phytosanitary requirements)
• Meat and dairy products (complex permit requirements from CFIA)
• Live animals and plants (permits from CFIA and Environment Canada)
• Certain medications and controlled substances (Health Canada authorization)
• Firearms, ammunition, and related parts (ATF export permit + Canadian import permit)
• Endangered species or products made from them (CITES documentation)

Food products are the most commonly problematic category. Commercial food imports require Canadian Food Inspection Agency (CFIA) approval and, in many cases, specific labeling in both English and French. Don't attempt to ship commercial food products to Canada without reviewing CFIA requirements first.

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How to Save Money Shipping to Canada

1. Default to USPS for Packages Under 5 lbs

For most consumer goods under 5 lbs, USPS Priority Mail International delivers the best combination of price and customer experience. No brokerage fees, reasonable transit times, and Canada Post's reliable last-mile network.

2. Compare Rates—Including Brokerage

The posted rate for UPS or FedEx isn't the full cost. Always factor in brokerage fees when comparing options. A $42 UPS Standard rate becomes effectively $62–$75 when brokerage and disbursement are included.

Atoship shows all-in discounted rates across USPS, UPS, and FedEx with no monthly subscription. The platform surfaces carrier-negotiated discounts of 30–50% off retail, which can make express services like UPS Expedited competitive with retail USPS rates—sometimes cheaper even after brokerage.

3. Claim USMCA on Your Invoice

If your goods are manufactured in the US, add the USMCA origin statement to every commercial invoice. This can save your customers 10–18% in import duty on textiles, furniture, and other categories—and makes your product more price-competitive versus non-USMCA origin goods.

4. Use USPS Flat Rate Boxes

USPS Priority Mail International flat rate boxes cap the price regardless of weight (up to 20 lbs). Dense, heavy products that would otherwise be expensive ship for a flat fee:

• Small Flat Rate Box: ~$28–$38
• Medium Flat Rate Box: ~$52–$70
• Large Flat Rate Box: ~$72–$92

5. Set Clear Customer Expectations

The #1 source of Canadian customer complaints is surprise taxes at delivery. Include a note in your checkout flow explaining that Canadian orders are subject to GST/HST and that the customer is responsible for paying applicable taxes on delivery. Better yet, offer DDP (Delivered Duty Paid) where you collect all taxes upfront.

6. Consider a Canadian Fulfillment Partner for High Volume

If you ship 50+ packages per week to Canada, a Canadian 3PL (third-party logistics) partner may offer better economics than cross-border shipping. With fulfillment inside Canada, you eliminate international shipping costs entirely for domestic Canadian delivery.

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Canada Shipping FAQ

Q: Why is Canada's de minimis threshold so low? Canada's CAD $20 threshold dates to the early 1990s. Despite pressure from e-commerce businesses and US trade partners to raise it, Canada has maintained the threshold to protect domestic retailers from tax-advantaged competition. It remains one of the lowest in the world.

Q: Can I avoid Canadian GST/HST entirely? No. GST/HST applies to all commercial imports above CAD $20, regardless of shipping method, carrier, or origin. The only legitimate exemptions are gifts under CAD $60 and returning Canadian goods.

Q: Why is my customer's UPS package being held for payment? UPS collected the import taxes and brokerage fees on your customer's behalf and is seeking reimbursement before delivery. Your customer must pay the brokerage fee plus taxes before UPS will release the package. This is normal for UPS but can be avoided by using USPS or prepaying brokerage at shipping time.

Q: How long does USPS take to deliver to Canada? USPS First-Class Package International: 7–21 days. Priority Mail International: 6–10 days. Priority Mail Express International: 3–5 days. Note that Canada Post's domestic transit time adds 1–3 days once the package clears customs.

Q: Do I need bilingual labels for Canada? For personal/consumer packages, English-only labels are accepted. For commercial food products, French-English bilingual labeling is required by Canadian law. For general merchandise, English-only is typically fine.

Q: How do I handle returns from Canadian customers? Returns from Canada are straightforward but require proper documentation. The returned goods need a customs declaration indicating they're US goods returned. If the original package was USPS, Canada Post handles the return through USPS. For courier returns (UPS/FedEx), use their return label programs. Many sellers offer partial refunds for lower-value items rather than absorbing international return shipping costs.

Q: Can I ship alcohol or wine to Canadian customers? Generally no—not directly to consumers. Alcohol imports into Canada require provincial liquor board permits and go through designated channels. This is not a practical option for direct-to-consumer e-commerce. Some provinces have specific wine import programs, but they're complex and volume-limited.

Q: Is Canada USMCA shipping affected by current trade tensions? As of early 2026, USMCA/CUSMA preferential tariff rates remain in effect for most consumer goods, but the trade relationship has seen periodic friction. Check the CBSA website for current tariff schedules and any temporary measures affecting your product category.

Q: What's the best carrier for high-value items to Canada? For high-value items (electronics, jewelry, collectibles), FedEx International Priority or UPS Worldwide Express offer the strongest insurance options and most reliable tracking. Prepay the brokerage fee to avoid surprise delivery charges for your customer.

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Bottom Line

Shipping from the US to Canada in 2026 is highly manageable once you understand the key rules:

• CAD $20 de minimis—almost every package gets assessed for taxes; plan accordingly
• USPS avoids brokerage fees—use it for packages under 5 lbs to give customers the best experience
• USMCA = 0% duty for most US-made goods—always declare origin on your invoice
• GST/HST is unavoidable—5% to 15% depending on destination province
• Brokerage fees can double the effective cost of UPS/FedEx if not managed

The US-Canada corridor is one of the most active shipping lanes in the world. With the right carrier choice and documentation, it's also one of the most predictable.