Canadian Government Backs Off ‘Netflix Tax’

The Canadian government is investing hundreds of millions in Canadian streaming and shelving the tax.

Canadian Government Backs Off ‘Netflix Tax’
Photo of U.S. Ambassador to Canada Pete Hoekstra testifying during a Senate Foreign Relations Committee hearing on March 13, 2025, by Jacquelyn Martin/AP.

WASHINGTON, June 8, 2026 – Canada’s government is backing down from the ‘Netflix Tax’, a recent decision to make U.S. streaming services pay fifteen percent of their Canadian revenue because of the impact the rule would have on Canadians.

The Canadian government is looking into the costs and impact that changes made to the Online Streaming Act would bring on Canadians. Canadian Identity and Culture Minister Marc Miller said, “It is another step to reinforce affordability for Canadians. This is not the time to raise the costs for Canadians.”

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