Ottawa and the provinces have collectively generated over $5.4 billion in tax revenue from cannabis since its legalization for recreational use in October 2018. The federal government received $1.2 billion of this revenue, while the remaining $4.2 billion was allocated to the provinces.
Among the provinces, Ontario led in revenue collection with $1.5 billion, followed by Alberta with just over $1 billion, despite having a smaller population compared to Ontario. Alberta notably collected the highest per capita tax revenue post-legalization, averaging about $210 per person. The Northwest Territories, Yukon, Saskatchewan, and Newfoundland and Labrador followed with per capita tax revenues of $135.80, $126.35, $121.55, and $113.65, respectively. On the contrary, Quebec had the lowest per capita share of recreational cannabis tax revenue at $55.31 per person since October 2018.
The figures were disclosed in response to an inquiry from Quebec Conservative MP Luc Berthold, who requested a breakdown of cannabis tax revenue and associated prevention program expenditures in the House of Commons.
However, the federal tax revenue fell short of initial projections. The government had forecasted $690 million in revenue over the first five years of recreational legalization in the 2018-19 budget, but by the end of the 2022-23 fiscal year, Ottawa had only collected around $567 million. Additionally, spending on cannabis education was significantly below projections, with Health Canada reporting expenditures of about $21.6 million on education and prevention programs since legalization, far below the projected $83 million over five years. Notably, over half of this spending ($13 million) occurred in the 2018-19 fiscal year.
During the peak of the COVID-19 pandemic in 2020-21 and 2021-22, Health Canada’s spending on cannabis education and prevention programs was less than $500,000. However, this spending has increased in each subsequent full tax year, reaching $2.3 million in 2024-25. Moreover, the federal government also contributed approximately $29.6 million to 26 other cannabis education and prevention programs since 2018.
It is important to note that Manitoba’s tax revenue data is not included in these figures as the province does not participate in the federally managed cannabis taxation framework. The tax revenue data for 2025 is incomplete, covering the period from April 1 to August 31.