Over $5B in Cannabis Tax Collected!

OTTAWA — New federal data shows that Canada has collected more than $5.4 billion in cannabis tax revenue since recreational marijuana was legalized in October 2018, with provinces taking the lion’s share of the earnings.

According to figures tabled in response to a House of Commons order paper question from Conservative MP Luc Berthold, the federal share amounted to $1.2 billion, while provinces collectively received about $4.2 billion.

Ontario Leads, but Alberta Tops Per-Capita Earnings

Ontario generated the highest provincial total at $1.5 billion, reflecting its large population and robust retail market.

Despite being far smaller, Alberta took second place with just over $1 billion in revenue, and also outperformed every other province or territory on a per-person basis. Alberta’s per-capita cannabis tax revenue reached approximately $210, more than any other region.

Trailing Alberta were:

• Northwest Territories: $135.80 per person
• Yukon: $126.35
• Saskatchewan: $121.55
• Newfoundland and Labrador: $113.65

Quebec recorded the lowest per-capita revenue, at $55.31 per resident since legalization.

The data excludes Manitoba, the only province that does not participate in the federal cannabis taxation framework.

Federal Revenue Falls Short of Early Expectations

While cannabis taxes have become a significant revenue stream, federal totals remain below initial projections. In the 2018-19 budget, Ottawa anticipated $690 million in revenue over the first five years. By the end of the 2022-23 fiscal year, the federal government had collected around $567 million, falling short of the target.

Cannabis Education Funding Far Below Initial Plans

Spending on cannabis education and prevention has also lagged behind earlier commitments. Ottawa originally planned to invest $83 million over the first five years of legalization, but Health Canada reported spending about $21.6 million since 2018.

More than $13 million of that was spent in the first fiscal year alone. During the peak of the COVID-19 pandemic (2020-21 and 2021-22), the national health agency spent under $500,000 combined on education and prevention initiatives. Funding has since increased, rising to $2.3 million in 2024-25.

In addition, the federal government provided about $29.6 million to support 26 external cannabis education and prevention programs.

Partial Data for 2025

The latest report includes only partial revenue figures for 2025, covering the period from April 1 to August 31.