OTTAWA — Since the legalization of recreational cannabis in October 2018, the federal and provincial governments in Canada have generated over $5.4 billion in tax revenue from cannabis sales. The federal government has collected approximately $1.2 billion, while provinces have received about $4.2 billion in total.

Ontario leads the provinces with the highest revenue, bringing in $1.5 billion. Alberta follows with just over $1 billion, despite having a population that is less than one-third that of Ontario. Alberta has also achieved the highest per capita tax revenue from cannabis, averaging around $210 per person. The Northwest Territories ranks second in per capita revenue at $135.80, followed by Yukon at $126.35, Saskatchewan at $121.55, and Newfoundland and Labrador at $113.65. In contrast, Quebec has the lowest per capita revenue, at just $55.31 since legalization.

This information was revealed in response to a question from Quebec Conservative MP Luc Berthold, who sought details on cannabis tax revenue and expenditures on related prevention programs.

Health Canada has allocated approximately $21.6 million for education and prevention initiatives since the legalization of recreational cannabis. Notably, $13 million of that amount was spent during the 2018-19 fiscal year. However, this spending is significantly lower than the original projections made in the 2018-19 budget, which anticipated $83 million in expenditures over the first five years of legalization.

The federal government’s cannabis tax revenue has also fallen short of initial expectations. The 2018-19 budget estimated $690 million in tax revenue over the first five years, but by the end of the 2022-23 fiscal year, the actual collection was about $567 million.

In the years 2020-21 and 2021-22, during the peak of the COVID-19 pandemic, Health Canada spent less than $500,000 on cannabis education and prevention programs. However, spending has increased in subsequent years, reaching $2.3 million in the 2024-25 fiscal year. Additionally, the federal government has contributed around $29.6 million to 26 other cannabis education and prevention programs since legalization.

It is important to note that this data does not include tax revenue from Manitoba, as the province does not participate in the federally managed cannabis taxation framework. The tax revenue figures for 2025 are also incomplete, covering only the period from April 1 to August 31.