Since recreational cannabis was legalized in October 2018, Ottawa and the provinces have collectively earned over $5.4 billion in tax revenue from cannabis sales. The federal government received $1.2 billion of this revenue, while the provinces benefited from the remaining $4.2 billion. Notably, Ontario led the provincial revenue share with $1.5 billion, followed by Alberta with just over $1 billion, despite its smaller population compared to Ontario.
Alberta stood out as the province with the highest per capita tax revenue from cannabis sales, bringing in around $210 per person post-legalization. Following Alberta were the Northwest Territories at $135.80 per person, Yukon at $126.35, Saskatchewan at $121.55, and Newfoundland and Labrador at $113.65. On the other hand, Quebec reported the lowest per capita share of recreational cannabis tax revenue at $55.31 per person since legalization.
In response to a query from Quebec Conservative MP Luc Berthold, the House of Commons provided a breakdown of cannabis tax revenue and spending on related prevention programs. However, federal tax revenue fell short of initial projections. While the government anticipated $690 million in revenue over the first five years of legalization, only about $567 million had been collected by the end of the 2022-23 fiscal year.
Additionally, spending on cannabis education and prevention programs fell below the estimated figures. In the 2018-19 budget, $83 million was projected for such programs over five years, but Health Canada reported spending approximately $21.6 million since legalization. Notably, over half of this amount, $13 million, was spent in the 2018-19 fiscal year alone. Health Canada’s spending on cannabis education and prevention programs increased gradually after the peak of the COVID-19 pandemic, reaching $2.3 million in the 2024-25 fiscal year.
Furthermore, the federal government allocated approximately $29.6 million to 26 other cannabis education and prevention initiatives since 2018. It is important to note that Manitoba’s tax revenue data is excluded from this report as the province does not participate in the federally managed cannabis taxation system. The data for 2025 is incomplete, covering the period from April 1 to August 31.