Ottawa and the provinces have collectively generated over $5.4 billion in tax revenue from cannabis since the recreational legalization in October 2018. The federal government received $1.2 billion, while the remaining $4.2 billion went to provincial budgets. Ontario led the provincial revenue with $1.5 billion, followed by Alberta with just over $1 billion, despite having a smaller population than Ontario.
Alberta emerged as the top province in per capita tax revenue from recreational cannabis, bringing in around $210 per person. The Northwest Territories followed with $135.80 per person, then the Yukon at $126.35, Saskatchewan at $121.55, and Newfoundland and Labrador at $113.65. In contrast, Quebec had the lowest per capita share at $55.31 per person since October 2018.
These details were disclosed in response to a House of Commons query from Quebec Conservative MP Luc Berthold, seeking a breakdown of cannabis tax revenue and expenditures on related prevention initiatives.
However, federal tax revenue fell short of initial projections. The government’s 2018-19 budget anticipated $690 million in revenue over the first five years post-legalization, but by the end of the 2022-23 fiscal year, Ottawa had collected about $567 million. In terms of cannabis education spending, the actual expenditure of approximately $21.6 million on education and prevention programs since legalization was significantly below the projected $83 million over five years. Notably, in the 2018-19 fiscal year alone, a large portion of this amount, $13 million, was spent.
Health Canada’s spending on cannabis education and prevention programs during the peak of the COVID-19 pandemic in the 2020-21 and 2021-22 fiscal years was less than $500,000 each year. Subsequently, there was an increase in program spending in each following complete tax year, reaching $2.3 million in 2024-25. Additionally, the federal government allocated around $29.6 million to 26 other cannabis education and prevention programs since 2018.
It is important to note that the data excludes tax revenue from Manitoba as the province is not part of the federally managed cannabis taxation system. The tax revenue information for 2025 is partial, covering the period from April 1 to Aug. 31.
